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Unicom to Establish New Subsidiary to Run CDMA Business

Sohu IT, 1/04/08

A Unicom insider has revealed that the company's CDMA and GSM networks, including customer services and accounting departments, are to be separated, with a new subsidiary to operate the CDMA network. It has not yet been decided if the GSM network will be spun off in a similar manner. The final decision may be announced at next week's annual meeting.

In January 2007 Unicom announced separation of sales and marketing departments for the two networks, creating independent GSM and CDMA sales and marketing departments.

Figures for the first three quarters of 2007 provide support for the move - GSM income amounted to RMB 46.62 bln, CDMA income to RMB 20.456 bln - meaning CDMA income has grown to account for 30% of the total.

Keywords: China Unicom CHU 0762.HK 600050.SH CDMA GSM corporate restructuring wireless


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