Rumor: MIIT Approves Unicom Use of China Mobile Network

Market News, 10/06/08

Senior executives at China Mobile (NYSE: CHL; 0941.HK) have revealed that at a recent internal meeting the Ministry of Industry and Information Technology (MIIT) discussed the possibility of supporting China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) one-way inter-network roaming. This would mean China Unicom subscribers could use China Mobile's network in areas without China Unicom signal coverage. China Unicom would pay China Mobile an undetermined inter-network settlement fee for use of their networks. China Mobile would not be allowed to access China Unicom's existing networks.

Insiders close to the MIIT revealed that the ministry has decided to begin implementing the policy starting in November.

At the same time, an employee at China Telecom (NYSE: CHA; 0728.HK) has revealed that China Telecom is currently lobbying the State-owned Assets Supervision and Administration Commission (SASAC), requesting to share the use of China Mobile's transmission towers. China Telecom, in exchange, could provide China Mobile access to its underground fiber-optic transmission networks.

Keywords: 0728.HK 0762.HK 0941.HK 600050.SH CHA China Mobile China Telecom China Unicom CHL CHU coverage MIIT network policy roaming SASAC telecom wireless fiber optics

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