China Telecom splitting in two
Chinese regulators today said they would split China’s dominant telecommunications carrier China Telecom into two companies along north-south regional lines.
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The company handling the southern 20 provinces will retain the China Telecom name, while the company handling the northern 10 provinces will merge with several smaller fixed-line carriers to form China Netcom-Jitong.
China is taking measures to promote competition in its telecom sector before it enters the World Trade Organization. China is also opening up the companies to foreign investment, allowing foreign ownership of up to 50% in fixed-line carriers and 49% in wireless companies.
--Kevin Fitchard, staff writer
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© 2012 Penton Media Inc.
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