China Unicom rejects network sale

China Unicom, the country's second-largest mobile phone operator, dismissed a proposal to sell one of its two mobile networks to fixed-line rivals China Telecom and China Netcom. The move followed a statement from China Telecom chairman Wang Xiaochu, who proposed to regulators that the fixed-line duo should acquire a Unicom mobile network and that such a deal would benefit all three of the Hong Kong- and US-listed companies. The comments fueled speculation that the government was preparing to restructure the Chinese telecoms market. Commenting on the proposal, a Unicom spokesman said the company has never had any intention of selling or transferring a mobile network. That does not rule out an eventual sale of a Unicom network a decision which would be taken by senior government leaders rather than the companies involved.