Rumor: China Mobile to Receive Fixed-Line Network License
IT-Times, 6/18/12
China's Ministry of Industry and Information Technology (MIIT) has decided to allow China Mobile (NYSE: CHL; 0941.HK) to operate a fixed-line network, according to a source close to the Ministry, but no public announcement will be made until an appropriate time. The source added that the consolidated national cable TV operator China Radio and Television Network will also receive a fixed-line network operating license. MIIT is also considering providing some form of compensation to China Telecom (NYSE: CHA; 0728.HK) and China Unicom (NYSE: CHU; 0762.HK; 600050.SH), possibly lowering inter-network carriage fees, but further discussion would be required to clarify details such as how much of a reduction to make.
China Mobile has been making preparations in anticipation of a license since 2009, such as participating in fourth-round FTTx procurement bidding and laying fiber optic cable in a number of provinces, which will allow it to rapidly enter the market.
Editor's Note: For more background on this topic, please see "Rumor: China Mobile Angles for Fixed-Line License" MD 6/01/12 issue.
Keywords: China Mobile fixed-line license telecom television FTTx MIIT cable TV CHL 0941.HK China Radio and Television Network fiber optics national cable company