China Telecom in $4bn CDMA expansion
[2008-7-21]
Tag : CDMA Mobile
Chinese carrier China Telecom, which as part of recentrestructuring moves in the nation's communications sector isassuming control of China Unicom's CDMA network, has announced anexpansion tender worth US$4bn. The firm has indicated that the money will be spent expanding themobile network - China's smallest - to rural areas, rather thanbeing used to improve capacity and quality of service in areas ofexisting coverage.
Chinese newspaper the South China Morning Post reported that thebudget for expansion would be $4bn. The Chinese state revealed its restructuring plans for the telecomssector in May this year, signalling its intention to reduce thenumber of state-owned carriers to three.
Under the plan, China Mobile, the world's biggest mobile operatorin terms of subscribers, will merge with fixed line carrier ChinaTietong Telecommunications.
As well as Unicom's CDMA network, China Telecom will take over thebusiness of China Satellite Communications. The GSM network of China Unicom will be merged with fixed lineoperator China Netcom. Many viewed the move as a preemptor to the allocation of 3Glicenses in the country, which are expected to be tendered beforethe Olympics in the summer.
China Mobile said, "The Company believes that reform of thestructure of the telecommunications sector will rationalise theallocation of existing network resources, achieve comprehensivebusiness operations and lead to a rational and healthy competitionframework."
Cynthia Leung, senior analyst at Ovum, said; "We believe theresulting solution has met this goal, even though no one singleoperator will gain all the benefits and despite the fact thatinternal competition between the merged entities may exist. Therestructuring plan avoids the complication and interoperabilityissues of network rental and network separation, which inevitablycan add to cost increase in the end."
Chinese carrier China Telecom, which as part of recentrestructuring moves in the nation's communications sector isassuming control of China Unicom's CDMA network, has announced anexpansion tender worth US$4bn. The firm has indicated that the money will be spent expanding themobile network - China's smallest - to rural areas, rather thanbeing used to improve capacity and quality of service in areas ofexisting coverage.
Chinese newspaper the South China Morning Post reported that thebudget for expansion would be $4bn. The Chinese state revealed its restructuring plans for the telecomssector in May this year, signalling its intention to reduce thenumber of state-owned carriers to three.
Under the plan, China Mobile, the world's biggest mobile operatorin terms of subscribers, will merge with fixed line carrier ChinaTietong Telecommunications.
As well as Unicom's CDMA network, China Telecom will take over thebusiness of China Satellite Communications. The GSM network of China Unicom will be merged with fixed lineoperator China Netcom. Many viewed the move as a preemptor to the allocation of 3Glicenses in the country, which are expected to be tendered beforethe Olympics in the summer.
China Mobile said, "The Company believes that reform of thestructure of the telecommunications sector will rationalise theallocation of existing network resources, achieve comprehensivebusiness operations and lead to a rational and healthy competitionframework."
Cynthia Leung, senior analyst at Ovum, said; "We believe theresulting solution has met this goal, even though no one singleoperator will gain all the benefits and despite the fact thatinternal competition between the merged entities may exist. Therestructuring plan avoids the complication and interoperabilityissues of network rental and network separation, which inevitablycan add to cost increase in the end."
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