china netcom

China Unicom buys China Netcom for $24B

Sue Marek — Tue, 03 Jun 2008 12:26:19 -0400

As part of the restructuring of China's state-controlled telecom industry, wireless operator China Unicom will acquire fixed line operator China Netcom in a share swap valued at about about $24 billion and will sell two of its smaller wireless properties to fixed line operator China Telecom and its parent for nearly $16 billion in cash.

The new deals will create more competition for China Mobile, which is currently the largest wireless carrier in the world with 400 million subscribers. China Unicom, with only 160 million subscribers, has been constrained because it had to operate two separate nationwide networks using different technologies. That burden will likely be lifted as it is selling the less profitable of two networks.

For more:
- see this WSJ article (sub. req.)

Related article:
Is China finally moving to 3G? Read this article on China's telecom restructuring.

Report: China to consolidate telecoms into 3 firms

Fri, 22 Feb 2008 06:59:54 -0500

According to a report from the Wall Street Journal, the Chinese government may consolidate its six telecom firms into three as part of a restructuring of the telecom industry in that country. The restructuring would allow the three remaining state-run companies to offer a full range of services instead of being divided into fixed-line, mobile or other groups. The move would affect China Mobile, China Unicom and China Netcom. Analysts expect a final decision on the restructuring by the end of March.

For more on the report:
- read the article over at the WSJ

ALSO NOTED: Gartner says AT&T is magic; Telecom-Unicom and Mobile-Netcom; and much more...

Wed, 15 Aug 2007 06:59:50 -0400

> Fierce 15 winner Interop Technologies has inked deals with three regional operators for messaging and WAP services. Release

> Gartner puts AT&T in the "magic quadrant" for wireless service providers. Release

> M:Metrics says mobile social networking has 12.3 million users in the U.S. and Europe. Release

> China Telecom to merge with China Unicom, while China Mobile could merge with China Netcom? Article

And Finally... A man (bloke) throws a mobile phone a "country mile" for a new record in the great sport of phone throwing. Article

ALSO NOTED: Virgin Mobile USA's vault; China Netcom directors resign; and much more...

Mon, 16 Jul 2007 06:59:50 -0400

> Virgin Mobile USA launches contact "vault" as a backup service. Release

> China Netcom directors resign. Article (WSJ sub. req.)

> Powerful earthquake disrupts Japan's telecommunications networks. Article

> Using data collected from mobile phone companies--especially tracking people via calls made and cell towers used to route those calls--is becoming increasingly important for criminal prosecutors. Article

> Sprint launches two new Sanyo Katana handsets. Article | Release

And Finally... Man goes on tank rampage and knocks down six cell towers. Article

China Netcom slims down for 3G launch

Tue, 16 Jan 2007 19:01:34 -0500

China Netcom, that country's number two fixed-line operator, is selling its fixed-line assets in two regions to its parent company China Netcom Communications Group for $448.9 million. The company specifically plans to sell its assets in Guangdong province and Shanghai, which are two areas largely dominated by rival China Telecom. Shedding the assets will allow China Netcom to streamline before it launches its 3G mobile services, which will be heavy on initial costs. While the industry is still waiting on those 3G licenses in China, many pundits are hopeful they will come out this year.

For more on China Netcom's fixed-line assets sale:
- see this article from the WSJ (sub. req.)

ALSO NOTED: Rogers adds 245K subs; Gates touts car radio SMS; and much more...

Sun, 07 Jan 2007 19:01:30 -0500

> Rogers adds 244,500 more wireless subscribers in Q4. Release

> Bill Gates touts sending and receiving SMS through car radios. Article

> Hutchison says Essa group only has limited refusal rights to bidders for its stake in the wireless JV. Article (WSJ sub. req.)

> Mobile firms in China, including China Netcom, China Mobile and China Telecom plan to list their shares domestically. Article (WSJ sub. req.)

> After what seems like a year-long hiatus, wireless chargers are back in the news cycle. Article

And Finally... Photos of the Sony Ericsson W880. These are teasers really... Photos

China Netcom urges government action on 3G licenses

Wed, 23 Aug 2006 20:01:36 -0400

China Netcom has spoken out, urging the Chinese government to act on issuing 3G licenses. Netcom, the country's second-largest fixed-line operator, called on the Chinese government to award 3G mobile licenses by March 2007 to ensure that the service would be ready for the 2008 Olympics in Beijing. Investors are becoming impatient over the lack of clarity surrounding Beijing's time table for 3G licenses. One major problem is trying to get China's homegrown TD-SCDMA standard up to par. China wants to require some of China's operators to use that technology, but it has never before been commercially deployed. If it doesn't perform as existing 3G technologies, these operators will be at a disadvantage.

For more about Netcom's 3G concerns:
- read this article from The Financial Times

PCCW expects deal this month

Sun, 02 Jul 2006 20:01:37 -0400

PCCW's Chairman said he expects to make a deal to sell the Hong Kong operator's telecom and media assets by the end of this month, despite strong opposition from its main shareholder, China Netcom, which owns 20 percent of the company. PCCW has received non-binding expressions of interest from Australia's Macquarie Bank and from Newbridge Capital, the Asian investment arm of U.S.-based Texas Pacific Group. Netcom isn't happy about any deal where the control of the company would be given to a foreign entity. Speculation is that Beijing might not approve a deal since Netcom is primarily owned by the Chinese government.

To read more about PCCW's planned sale of its assets:
- take a look at this article from Dow Jones

Mcquarie Group woos China Netcom in PCCW bid

Thu, 22 Jun 2006 20:01:35 -0400

Australia's Mcquarie Group is trying to woo China Netcom as its ally in the quest for the telecom and media assets of Hong Kong-based PCCW, which has attracted a rival offer from TPG Newbridge Capital. Mcquarie reportedly structured its $7.3 billion takeover offer so that Netcom, which owns 20 percent of PCCW, could retain its stake in the assets. China Netcom, which is controlled by the Chinese government, has opposed any takeover of PCCW. That means Beijing might reject any sale.

To read more about Mcquarie Group's bid for PCCW:
- take a look at this article from The Financial Times

Bidding war brewing for Hong Kong's PCCW

Tue, 20 Jun 2006 20:01:36 -0400

A bidding war is brewing over Hong Kong's PCCW, whose assets include mobile operator Sunday Communications. A second bidder has reportedly surfaced to take over the company's telecom and media businesses. In addition to Australia's Mcquarie Bank, Newbridge Capital, a division of U.S. private equity firm Texas Pacific Group, is considering an offer of $6.44 billion for the fixed-line network, broadband TV service and cellular businesses of PCCW. PCCW pulled its shares and those of the mobile business on Wednesday "in respect of a possible transaction," according to a company statement. However, the Chinese government could block any takeover to a foreign entity. State-owned China Netcom, the largest fixed-line operator in mainland China, owns 20 percent of PCCW and opposes the potential change in ownership. "We do not want to see any changes in PCCW, which is owned and managed by Hong Kong people, nor any changes in its key assets," it said.

For more about the bid for PCCW:
- check out this article from Dow Jones

Does TD-SCDMA sidestep CDMA patents?

Wed, 15 Feb 2006 19:01:37 -0500

Will TD-SCDMA sidestep patents owned by Qualcomm? That was an interesting topic during the TD-SCDMA Forum's press conference at the 3GSM. The Chinese home-grown standard is backed by the Chinese government to promote domestic business and bypassing the royalties demanded by Qualcomm and other vendors. Yet the TD-SCDMA Forum hasn't even spoken to Qualcomm and Ericsson, another big CDMA patent holder, about IPR issues. The issue could become more sensitive given the fact that China appears to be favoring TD-SCDMA in a big way, despite its vows not to. It has ordered all W-CDMA trial networks to shut down in order to give TD-SCDMA a leg up. China's telecom regulator has selected China Mobile, China Telecom and China Netcom to build TD-SCDMA pre-commercial networks. We could see some pretty thorny IPR issues that may involve WTO action.

For more information about TD-SCDMA and patent issues:
- check out this article from The Register
- read this article from TelecomDirect News