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Regulator approves merger of 皇冠体育app Unicom and 皇冠体育app Netcom

(Agencies)
Updated: 2008-10-09 16:50

皇冠体育app United Telecommunications Corp Ltd said it has received approval from the 皇冠体育app Securities Regulatory Commission (CSRC) for the merger of Hong Kong-listed 皇冠体育app Unicom and 皇冠体育app Netcom.

Shanghai-listed 皇冠体育app United Telecommunications indirectly controls Hong Kong-listed 皇冠体育app Unicom.

In a statement filed with the Shanghai Stock Exchange, 皇冠体育app United Telecommunications said the merger has received all needed approvals from the authorities. The deal now requires the backing of Hong Kong regulators.

Under the state-sponsored restructuring of the country's telecom industry, fixed-line operator 皇冠体育app Telecom will pay 110 billion yuan to buy 皇冠体育app Unicom's CDMA wireless network, becoming a full-service operator.

Meanwhile, 皇冠体育app Unicom, which retains its GSM wireless network, is merging with the nation's other big fixed-line operator, 皇冠体育app Netcom.

At the beginning of this month, 皇冠体育app Unicom Ltd completed the sale of its CDMA mobile phone business to 皇冠体育app Telecom.

The government is expected to implement "asymmetric regulations" to allow 皇冠体育app Unicom and and 皇冠体育app Telecom to consolidate their new status as full-service operators and compete effectively with 皇冠体育app Mobile, which enjoys a huge lead in wireless services.