The Beijing News, 7/03/08
According to the operations department of the company, China Telecom (NYSE: CHA; 0728.HK) headquarters has issued a memo stating that it will establish its own terminal company. Reportedly, China Telecom Holdings will invest in the company, which will be a second-level department and will be responsible for mobile terminal orders and procurements, and will be overseen by the company's client division, basically copying the model of Unicom Huasheng. Many equipment manufacturers have already entered talks with China Telecom.
Editor's Note: Previous reports said that Unicom would not sell its handset procurement subsidiary, Unicom Huasheng, to China Telecom. For more background on this topic, please see "Rumor: Huasheng to Stay in Unicom", MD 6/30/08 issue.