Investment Banks: Start of Telecom Restructuring Close
Sina Tech, 3/04/08
Morgan Stanley reports that the starting bell is about to ring for China's telecom restructuring, but that reorganization plans are still stalled at the macro level, with details of implementation still some time away from being settled. Morgan Stanley added that it could confirm, following inquiries with legal experts, that minority shareholders in China Unicom (NYSE: CHU; 0762.HK; 600050.SH) will have a major influence on the restructuring process.
Over the next 3-6 months, Morgan Stanley favors Unicom over the other three telecom operators, but for long-term investments recommends acquiring China Mobile (NYSE: CHL; 0941.HK) stock, as the company remains the most attractive growth choice in China's telecom market.
A Fitch Ratings report says that China Mobile may win the license for China's sui generis TD-SCDMA 3G technology, owing to the company's deep pockets and its experience with TD-SCDMA testing. Fitch Ratings head Matt Jamieson says that if China Mobile receives a TD-SCDMA license, Fitch will reconsider its rating for the company, though he does not believe that it would have an immediate negative effect. Jamieson added that the successful commercial testing of TD-SCDMA and ready availability of TD-SCDMA handsets will be major factors in the restructuring of China's telecom industry.
Keywords: Fitch Matt Jamieson 0762.HK 0941.HK 3G 600050.SH China Mobile China Unicom CHL CHU license Morgan Stanley restructuring TD-SCDMA telecom
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