> Industrial News > News   Telecom Reorganization Announcement Released; Three 3G Licenses to be Issued Thereafter   The Ministry of Industry and Information, the National Development and Reform Commission, and the Ministry of Finance today jointly released the announcement on deepening telecom system reform. The announcement points out that China Telecom is encouraged to acquire the CDMA network (including assets and subscribers) from China Unicom, China Unicom to be merged with China Netcom, the basic telecom services of China Satcom to be merged into China Telecom, and China TieTong to be merged into China Mobile. With the reform and reorganization come the three 3G licenses, which will be issued on the reorganization completion. If corporate reorganization, network asset transfer or mergence of listed company is involved, related international practices and capital market rules inside and outside China should be strictly followed. Comment: The release of the announcement has confirmed earlier rumors. China Mobile has little loss but the new task of operating the TD-SCDMA network. It still has risks because it has to invest much in TD-SCDMA network construction and explore operation experience. The largest beneficiary is China Telecom and its performance after the reorganization will be an important measurement for the reorganization success. The reorganization is expected to complete in 2009 at the earliest, followed by the issuance of three 3G licenses, which means China Mobile’s operation environment will remain unchanged with assured profits in 2008.   Time:2008-06-04 Source:NaviForum Shanghai News Center Relative