BEIJING—China’s Minister of Information Industry Wu Jichuan announced that China will set up four integrated telecom operators that will provide fixed-line, mobile, data and basic telecom services. In addition to China Mobile and China Unicom, two other operators will receive a mobile license within the next two years.
Although the minister did not name the companies, it is expected that the two companies that were created following the split of China Telecom will be chosen. The northern arm of China Telecom will merge with China Netcom and Jitong to form China Network Communications Corporation. The southern arm will retain the name China Telecom Group. Both will commence formal operations on 12 February.
China Mobile and China Unicom will be allowed to enter the field of fixed-line operations. Unicom already has a limited fixed-line business. Laying a cable network will however be quite expensive, and it remains to be seen whether China Mobile will enter the fixed-line business in earnest.
