Rumor: No Unicom, Netcom Merger Until After Olympics

The Beijing News, 5/30/08

A China Unicom (NYSE: CHU; 0762.HK; 600050.SH) insider has indicated that coordination with shareholders after the publishing of the Chinese telecom industry restructuring plan will require a significant amount of time. In addition, during the next several months, both Unicom and China Netcom (NYSE: CN; 0906.HK) will remain heavily focused on the smooth provision of communications services for the August Olympics, during which time Netcom will provide fixed-line services and Unicom will provide roaming services for international CDMA users. Also, due to the fact that many of China Unicom's base stations are combined CDMA and GSM units, China Telecom (NYSE: CHA; 0728.HK) will be unable to take full control of many of Unicom's CDMA base stations in a short time. For these reasons, industry insiders believe that the restructuring will take place after the Olympics.

Keywords: 0762.HK 0906.HK 600050.SH CDMA China Netcom China Telecom China Unicom CHU CN GSM Olympics restructuring telecom wireless CHA 0728.HK

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