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China Unicom Seeks to Transfer PHS Users

Beijing Times, 4/15/10

According to a source from China Unicom (NYSE: CHU; 0762.HK; 600050.SH) local subsidiary Beijing Unicom, China Unicom has ordered all of its local subsidiaries to begin work on transferring its personal handyphone system (PHS) users off the network. At present, Unicom's efforts to transfer its PHS users in select regions have met with less than satisfactory results.

Beijing Unicom intends to officially implement plans to begin transferring its PHS users at the end of the second quarter. A Beijing Unicom official said that Unicom currently has approximately 500,000 PHS customers in Beijing, the majority of whom have relatively weak purchasing power. The official said that while simply offering discounted rates would not attract a sufficient number of users to switch to other services, it would cost too much to offer these users free handsets, therefore Beijing Unicom has not yet settled on a final course of action.

Keywords: Beijing Unicom China Unicom wireless PHS 0762.HK 600050.SH CHU PHS subscribers

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