China telco re-org schema announced.
After years of rumors, the final picture of China telco re-org got announced today. It’s somewhat the same as the gossip inside the circle.
China Netcom(CNC) will be merged into China Unicom to be the new China Unicom. Meanwhile, The “C” and “G” networks of China Unicom will be splitted, while the “C” part will be merged into China Telecom. China Railcom (CRC) will be merged into China Mobile(CMCC).
The executives of the new companies are also mentioned:
- CMCC – Wang Jianzhou, Zhang Chunjiang(from CNC);
- CT – Wang Xiaochu, Shangbin(from CUC);
- CUC – Chang Xiaobing, Zuo Xunsheng(from CNC);
This re-grouping is interlocked with the 3G licenses. It’s said that the new CMCC will get TD-SCDMA, while new CUC will get WCDMA, and CT will get CDMA2000.
It’s interesting to watch back to what I summarized the evolvement of China telecommunication industry in the past 10 years.
According to latest news, CT will buy the CDMA biz from CUC at a price about 110B RMB, roughly – 16B$. After CT finish this purchase, CUC and CNC will start the merging.
The world changes always. What I am interesting is how the industry could be impacted. I’m looking forward to get more quality service on my cell phone and house cable; at seem time the price should goes down to next level.