Telecom shake-up plan could come soon

China may announce its long-awaited plans to restructure its telecommunications industry as early as next month, the Wall Street Journal reported, citing state media. The plan is expected to consolidate China’s six state-run telecom operators into three, allowing the new entities to offer a full range of services. The consolidation would also pave the way for the issuance of 3G (third generation mobile technology) licenses. China Mobile Communications will reportedly merge with fixed-line carrier China Tietong Telecommunications Corp, while China Telecommunications Corp, parent of China Telecom, will acquire a CDMA wireless network from China United Telecommunications Corp, China Unicom’s parent company. The remainder of China United is expected to merge with China Network Communications Group, the parent of China Netcom. China Satellite Communications Corp would merge into a state-owned aerospace industry group.