Update: Key Strategy Points for Unicom, Netcom Merger
Economic Observer, 6/14/08
An employee at China Netcom (NYSE: CN; 0906.HK) has revealed that the company's recent high-level meeting with China Unicom (NYSE: CHU; 0762.HK; 600050.SH) set overarching goals for the coming merger between the two companies. Detailed proposals are now expected from middle-management, with work ongoing in the products, business services and marketing departments. A group has been formed to deal with marketing, value-added services and customer issues. Connecting fixed-line and mobile services (such as the VAS of PHS and GSM) is a priority, as is ensuring China Netcom can service China Unicom users in areas where the latter lacks wireless network coverage.
This internal source revealed that PHS will be used for packet-based data services in the future, taking advantage of its dense network of wireless stations to allow users to surf the web. China Network will provide 3G content services to PHS users, and will continue to expand the network's value-added wireless services.
Keywords: restructuring 0762.HK 0906.HK 3G 600050.SH China Netcom China Unicom CHU CN fixed-line GSM marketing PHS strategy telecom VAS wireless
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