[photopress:It_tietong1.jpg,full,alignright]China Tietong, which owns the telecommunications network along the nation’s railroads, was ordered to be merged with China Mobile Communications last month to help the nation’s largest mobile phone operator extend its reach to the fixed-line segment.
Now, the state has announced China Mobile, must submit a final proposal on its merger with China Tietong by the end of next month.
Since then, China Tietong’s general manager Zhao Jibin has joined China Mobile Communications as deputy general manager.
Senior officials of China Mobile and China Tietong met earlier to discuss the consolidation plan.
An industry source said China Tietong might split into three divisions — railway communications, communications service, and other retail and internet connectivity businesses.
[photopress:it_Tietong2.jpg,full,alignleft]The smaller businesses of China Tietong, such as its broadband services for retail customers, could be consolidated into China Mobile, while its core railway fixed-line network may come under the state-owned mobile parent as a single entity.
Last year, China Teitong had total assets of RMB16 billion, over 20 million fixed-line users and more than 3 million broadband internet users.
The illustration here is of the China Tietong stand with guqin performances at ITU Telecom World 2006.
Source: Content Agenda