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China Telecom, Unicom Partner to Improve Operations

NetEase Tech, 1/13/16

China Telecom (NYSE: CHA; 0728.HK) and China Unicom (NYSE: CHU; 0762.HK; 600050.SH) have launched a partnership plan to share resources in order to improve customer service. More specifically, the two telecom operators will pursue the strategic partnership in the following five areas:

1. Deepen cooperation on joint construction and sharing of networks, accelerate network coverage, improve network service capability, and guarantee communications capabilities in an emergency.

2. Enrich terminal product line, and advocate for 6-mode "all network compatibility" to become a national standard.

3. Improve network internet quality, and enhance customer perception of service quality.

4. Employ new mechanisms and market-responsive operations to develop innovative business partnerships.

5. Partner with foreign telecom operators to expand international roaming coverage and improve international roaming service quality.

China Telecom and China Unicom were previously rumored to be considering a merger, but Unicom chairman Wang Xiaochu denied this. At the press conference announcing the current cooperation, China Telecom general manager Yang Jie emphasized that this cooperation in no way implies a restructuring or merger between the companies. The two companies will remain independent, competing entities.

Editor's Note: For more information on this topic, please see "China Unicom Denies Merger Rumor," MD 4/22/15 issue.

Keywords: wireless Wang Xiaochu Yang Jie China Telecom China Unicom telecom international roaming 0728.HK 0762.HK 600050.SH CHA CHU

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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