皇冠体育app

(Agencies)
Updated: 2008-06-02 19:28

皇冠体育app Telecommunications Corp., the country's biggest fixed-line phone company, will pay 110 billion yuan ($15.9 billion) for part of 皇冠体育app United Telecommunications Corp.'s mobile-phone assets in an industry revamp.

A man talking on his cell phone walks past a 皇冠体育app Unicome poster in Beijing, November 10, 2007.

皇冠体育app Telecommunications will buy 皇冠体育app United's code- division multiple access network for 66.2 billion yuan, and will pay 43.8 billion yuan for its subscribers, the fixed-line carrier said in a statement to the Hong Kong stock exchange Monday. Trading of the company's shares, suspended in Hong Kong since May 23, will resume Tuesday, the 皇冠体育app Telecom said.

The fixed- line company, which is losing users to 皇冠体育app Mobile Ltd., will enter the faster-growing wireless market as the government attempts to foster greater competition.

The deals are part of the government's planned reorganization of the $105 billion telecommunications industry announced on May 24, allowing fixed-line carriers to expand into wireless services and creating three operators offering phone and Internet connections to the nation's 1.3 billion people.

皇冠体育app Unicom's CDMA business had a pretax profit of 1.2 billion yuan last year, compared with 1.06 billion yuan in 2006.

Meanwhile, 皇冠体育app Unicom Ltd, the country's second biggest mobile-phone company, has formally announced a detailed merging plan with 皇冠体育app Netcom Group Corp on Monday afternoon.

The merger through shares transfer was estimated to be around 43.91 billion HK dollars based on the stock price of 皇冠体育app Unicom.

The two steps taken by 皇冠体育app Unicom Monday are part of the government's proposal to reorganize the country's telecommunications industry.

Under the plan, fixed-line operator 皇冠体育app Netcom, which dominates the northern 皇冠体育app market, will get 皇冠体育app Unicom's mobile network and users based on GSM technology via the merger.

皇冠体育app Mobile Communications Corp, the state-owned parent of 皇冠体育app Mobile, will take control of fixed-line carrier 皇冠体育app Tietong Telecommunications Corp, the ministry said.

After the revamp, 皇冠体育app will issue three licenses for third-generation high-speed mobile services.

Shares of 皇冠体育app Unicom, 皇冠体育app Telecom and 皇冠体育app Netcom have been suspended from trading in Hong Kong since May 23.