BEIJING-Future mobile competition in China could be reduced if the government approves a proposal by fixed-line carrier China Telecom to buy mobile carrier China Unicom, according to international press reports. Under the proposal, China Telecom would join fellow fixed-line carrier China Netcom Group for the acquisition, reports said.
Both China Telecom and China Netcom are expected to win third-generation licenses in the country, along with China Unicom and the country’s other mobile provider China Mobile. However, the Chinese government has continually delayed the 3G licensing process.
China Unicom currently has GSM and CDMA networks; China Mobile offers only GSM service and is the largest mobile carrier.
If the deal is approved, China would have three 3G carriers instead of the expected four. News reports said carrier executives noted that four mobile carriers could not be profitable in China, but three 3G providers could survive in the world’s largest wireless market.
