Rumor: China Mobile to Face Restrictions on Broadband

Oriental Morning Post, 9/16/08

Informed sources have revealed that regulations are under development to limit China Mobile's (NYSE: CHL; 0941.HK) ability to compete in broadband provision, restricting the company to developing such services solely out of China Tietong's resources. The regulations will apparently be passed following China Mobile's merger with China Tietong, and are designed to prevent the company from launching a wholesale offensive against China Telecom (NYSE: CHA; 0728.HK) and the new China Unicom (NYSE: CHU; 0762.HK; 600050.SH) in broadband provision.

Editor's Note: Industry rumors have also surfaced saying that China Mobile will face other asymmetric regulations. For more background on this topic, please see "Rumor: Partial Cross-Network Number Portability in 2009", MD 6/12/08 issue.

Keywords: 0728.HK 0762.HK 0941.HK 600050.SH broadband CHA China Mobile China Telecom China Tietong China Unicom CHL CHU telecom wireless regulation

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