Aiming to complete the liquidation of its CDMA assets as soon as possible, China Unicom (NYSE: CHU; 0762.HK; 600050.SH) will lower prices on its stock of CDMA handsets in the near future. A source with knowledge of the situation said that the lower prices would primarily be on "mid-range to low-end CDMA handsets."
The source said that the majority of Unicom Huasheng employees would stay on at Unicom, with a small number going on to China Telecom (NYSE: CHA; 0728.HK). Unicom Huasheng GM Yu Yingtao will likely stay at Unicom.
A spokesperson for China Telecom said that following completion of the acquisition of Unciom's CDMA business, the China Telecom would introduce an all-new CDMA promotion plan.
Editor's Note: Unicom's efforts to liquidate its CDMA handset inventory come on the heels of earlier rumors that China Telecom was not open to taking over Unicom's remaining inventory. For more background on this topic, please see "China Telecom Balks on Unicom Handset Inventory", MD 6/26/08 issue.