China United Communications Corporation, parent company of China Unicom, will hand over the management right of CDMA network to the parent company of China Telecom, China Telecommunications Corporation, with the onset of October 1.
China Telecom had acquired China Unicom’s CDMA network to become a full-service operator, in a move that formed a part of the country’s plan to restructure its telecom industry.
“Selling the CDMA business will have a positive impact on our business in the future since it will make us focus on developing the GSM business and better prepare for the upcoming 3G market,” said Chang Xiaobing, chairman and chief executive of China Unicom.
Furthermore, China Unicom will transfer one third of its employees to China Telecom as a part of the transaction, which is scheduled to conclude in three months. |