China Business News, 8/26/08
Tong Jilu, executive director and CFO of China Unicom (NYSE: CHU; 0762.HK; 600050.SH) has stated that once launching a 3G network, the company expects it to take one year for the network to break even and two years before it can turn a profit. China Netcom (NYSE: CN; 0906.HK) chairman and CEO Zuo Xunsheng has stated that China Unicom, which will merge with China Netcom, should be able to sign-up over one-third of all 3G subscribers, stating that the WCDMA license that the new Unicom is expected to receive, has the most mature technology, and most mature industry chain.
Editor's Note: Unicom plans to spend RMB 100 mln on its 3G expansion. For more background on this topic, please see "New Unicom to Spend RMB 100 bln on 3G Expansion", MD 8/13/08 issue.