BEIJING—China Mobile became China’s biggest telecom operator on 16 May, although not through actions of its own. The long delayed split of fixed-line operator China Telecom finally became a reality on Thursday. The split had been planned for February but was subsequently delayed.
The northern part of China Telecom will merge with China Netcom and Jitong and use the name China Netcom. It will offer fixed-line services in 10 northern Chinese provinces.
The southern part will operate in the remaining provinces and keep the name China Telecom. In a later stage, both companies are expected to begin operations in each other’s areas, although disputes over costs and revenue sharing may delay an increase in competition the government is hoping for.
The restructuring is expected to take up to two more years. Both companies are planning stock market listings in the near future.
