Rumor: China Mobile May Merge with National Cable Operator
Sina Tech, 11/12/13
According to cable industry insiders, China Mobile (NYSE: CHL; 0941.HK) will invest in China's planned national cable network company, with the possibility of a future merger between the two companies.
According to a treatise on the reorganization of the telecommunications industry recently released by the Development Research Center (DRC) of China's State Council in advance of the Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China, the so-called "383 plan," China's telecom companies will once again be reorganized to foster greater competition in the industry. Previously, there have been reports that China's planned national cable network company would be called "China Broadcast Television Network Limited" and would be regarded as a "large-scale cultural company," however at present the planned company more closely resembles a telecom operator.
Because China Mobile does not have a large fixed-line network user base of its own, a merger between the companies would be complementary.
Keywords: China Mobile television Development Research Center State Council CHL 0941.HK CCCPC national cable company restructuring government policy
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