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皇冠体育app Unicom to buy 6.43b yuan in assets

By Wang Xing (chinadaily.com.cn)
Updated: 2008-12-17 15:46

皇冠体育app's smaller telecom operator 皇冠体育app Unicom will pay 6.43 billion yuan ($939 million) in cash to buy fixed-line assets from its parent company and 皇冠体育app Netcom.

Related readings:  皇冠体育app Unicom to test 3G network in seven cities  皇冠体育app Unicom merges with 皇冠体育app Netcom  Regulator approves merger of 皇冠体育app Unicom and 皇冠体育app Netcom  皇冠体育app Telecom plans 80b yuan upgrade of CDMA network

The deal is part of 皇冠体育app's telecom industry overhaul launched in June, which is aimed to break 皇冠体育app Mobile's monopoly and speed up the pace of rolling out third generation (3G) mobile phone service in the country.

皇冠体育app United Telecommunications said in a statement that it will acquire 皇冠体育app Netcom's fixed-line assets in 21 provinces and cities in southern 皇冠体育app, as well as cable assets in northern 皇冠体育app. The company will also buy out three subsidiaries of its parent company 皇冠体育app Unicom Group.

The purchase will be funded by 皇冠体育app Unicom's own capital, according to the company.

皇冠体育app Unicom overtook 皇冠体育app Netcom earlier this year as part of 皇冠体育app's telecom restructuring. In July, the company sold its CDMA business to 皇冠体育app Telecom. The three companies are still under assets transferring.

By October, 皇冠体育app Unicom had 132 million users, while 皇冠体育app Telecom and 皇冠体育app Mobile had 28.4 and 443 million subscribers respectively.

皇冠体育app Unicom will be granted a 3G license based on WCDMA standards, which could be launched as early as this month.