China Telecom has been urged by the Ministry of Information Industry to speed up preparation work for the splitting of the company into two fixed-line operators. The central government ordered the break up to stimulate competition as part of the country’s World Trade Organisation accession terms.
However the creation of the two companies covering separate geographical areas has turned out to be problematic, particularly the one involving the merger of 10 provincial networks in the north with China Netcom and Jitong Network Communications.