Nokia poised for shake-up in Chinese sector - FT.com

Monday, February 25, 2008

-Update-

FT.com reports that international mobile telecoms producers such as Nokia (NOK) will be big beneficiaries of an expected overhaul of the Chinese telecoms industry, according to Colin Giles, NOK's president for Greater China. A long-awaited restructuring of the state-owned industry and the granting of third generation (3G) mobile technology licences appears likely soon, according to speculation in Chinese media and industry circles. "It sounds like it's getting closer but we're all in the same situation - we've been waiting for the last three years for the licences to be given," Giles said. Late last week, a report on China's official state radio said a comprehensive restructuring of the country's largest telecom companies "might" be announced in the coming weeks. The report said China Mobile, the biggest mobile telecom provider in the world in terms of subscriber numbers, would merge with China Tietong Telecommunications, a small fixed-line operator. Mobile operator China Unicom would be split up and its wireless CDMA network given to fixed-line player China Telecom and its GSM network merged with the state-owned parent of mobile operator China Netcom. Giles said his company expected to be a big beneficiary if and when the restructuring came because it would increase the number of mobile operators in the country, all of whom would need to purchase and upgrade equipment from suppliers such as NOK.