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Rumor: Unicom Subsidiary Stops Promoting CDMA

South CN, 3/18/08

According to an employee at a China Unicom (NYSE: CHU; 0762.HK; 600050.SH) branch, branch executives have made public a number of decisions, including the removal of the CDMA network from operational evaluations and an end to advertising of CDMA services, with existing advertising contracts being switched to promote GSM business. The source even said that the company is encouraging employees to use GSM phones.

Employees in other Unicom branches did not report similar situations, and suggested that it would still be at least another month before the much-anticipated telecom restructuring could begin. One employee said that operational norms mean that once ministerial level appointments are made on March 17, a series of appointments to ministerial departments and bureaus will be made, ending no sooner than late April or early May. With handover work due to the ministerial reorganization taken into account, the telecom restructuring will not take place till late April or even later.

Editor's note: It is widely believed that China's telecom restructuring will see China Unicom's CDMA network transferred to China Telecom, leaving Unicom to focus on development of its GSM network.

Keywords: timetable 0762.HK 600050.SH CDMA China Telecom China Unicom CHU GSM restructuring telecom wireless

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