China Telecom Discourses on CDMA Network, TD-SCDMA Trial
Sina Tech, 4/01/08
Responding to rumors that China Telecom (NYSE: CHA; 0728.HK) could purchase China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) CDMA assets, China Telecom chairman and CEO Wang Xiaochu said at a press conference on his company's business results yesterday that China Telecom could at first rely on further borrowing to raise the necessary capital, as the company's debt-equity ratio is currently only 30.8%. Wang said that the company might also raise capital by issuing a small number of A-shares, or through attracting strategic investors, noting that the company would choose investors that offered synergies with China Telecom's services.
Responding to questions about such hot topics as the telecom industry restructuring and capital market operations, Wang Xiaochu said that while he personally believed that the timing for restructuring was drawing "nearer and nearer," he had yet to receive any detailed plans or timetables. If the government did decide to begin restructuring, Wang said, it could take three to four months for acquisitions to be completed; after this, Wang said, he believes it would be another three to five months before the new operators could begin to provide 3G services.
Wang stressed that there was no way at present to confirm whether China Telecom would definitely be given a CDMA network.
Regarding 3G commercial trials, Wang said that because the TD-SCDMA tests for which China Telecom bears responsibility are not located in Olympic host areas, the company has been deliberately "unhurried" in its trials. The company has already issued 1,200 TD-SCDMA numbers to "friendly" customers, but will wait to see when 3G licenses are issued before introducing services to the wider public.
Keywords: China Unicom CHU 0762.HK 600050.SH financing timetable Olympics wireless 0728.HK 3G CDMA CHA China Telecom restructuring TD-SCDMA telecom trial Wang Xiaochu
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