BEIJING-Chinese officials may be close to deciding how to split up China Telecom, the
government-run telecommunications company.
Chinese newspapers last week reported that a plan to split the
company into four independent parts seemed to be on its way to gaining approval from policymakers. That plan would
split the company into separate businesses for paging, mobile communications, satellite data transmission and fixed-
line phone service, said the reports.
Another proposal would have broken up the company along regional lines,
much like the Baby Bell system in the United States.
The break-up of China Telecom is meant to provide a level
playing field for wireless operator China United Telecommunications Corp., especially as it relates to accessing the
fixed-line network.
China Telecom dominates the wireless market in China with about 22 million users, compared
with China Unicom, which has about 1 million mobile subscribers.
