China Telecom was finally broken up into two state-owned operators on May 16. The larger fixed-line operator will retain the China Telecom name and control the networks in 21 provinces in the south and west of the country. The smaller operator, known as China Netcom Group, will control the networks in 10 northern provinces. According to a company executive quoted by China Business Times on May 21, its northern units will be established within two months.
The existing company China Netcom will continue to operate independently but as a subsidiary of China Netcom Group. It will provide high-speed network services to corporate clients. Jitong Communications will also become part of China Netcom.