Truce reached over fixed lines

China Telecom and China Netcom, the country's two fixed-line telephone operators, have sealed a deal intended to limit competition and leave each in control of its core markets, the Financial Times reported. The dispute between the parent companies revealed conflicts of interest in the country's state-controlled, but foreign-invested telecommunications sector. China's four fixed-line and wireless operators were carved out of the former telecoms monopoly to create a competitive industry. China Telecom currently operates the fixed-line telephone network in central and southern provinces, while China Netcom, its much smaller rival, focuses on the northern regions.