China Telecom, China's biggest fixed-line operator, has agreed to buy a mobile business from wireless rival China Unicom for $15.9bn as part of a state-orchestrated telecoms sector restructuring. China Unicom operates a GSM wireless network in addition to the CDMA network it is divesting. Following this sale, China Unicom is buying China Netcom a fixed-line operator in an all-share deal that values the smaller conmpany at about $23.8bn. The transactions are part of a reorganisation of China’s state-controlled but publicly listed telecom comanies that regulators hope will create more equal competition in a market dominated by wireless group China Mobile.
Michelle Wong, 09 June 2008