In a reorganization of China's telecom industry, which will change the face of the wireless industry, the country plans to merge two of its largest mobile companies, China Netcom (NYSE: CN) and China Unicom (NYSE: CHU). The new firm will be issued on of the three high-speed wireless licenses that the government plans to grant.
China's two largest phone companies, China Mobile (NYSE: CHL) and China Telecom, will receive the other two contracts.
According to Reuters, the 3G development will "unleash billions of dollars in spending for network gearmakers." Those companies would include Nokia (NYSE: NOK), Nortel (NYSE: NT), Ericsson (NASDAQ: ERIC),and Motorola (NYSE: MOT).
The news may also be a benefit to handset makers as they rush to offer products for the new 3G networks. Apple (NASDAQ: AAPL) has still not found a home for the iPhone in China.
More competition among carriers will give it a greater chance to strike a good deal. A new market could also give some aid to Motorola's flagging handset sales and to rivals Samsung and Sony Ericsson.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
5-25-2008 @ 5:13PM
Harry said...
Bet on China Mobile...
5-26-2008 @ 11:45AM
CASSER said...
I BELIEVE THAT ALL THE CORP., SHOULD NOT BE DOING BUSINESS WITH CHINA
WHY SHOUKLD WE HELP THEM MAKE ALL OUR U. S. AMERICAN MONIES
THEY DONT SEEM TO WANT TO HELP THE POOR ANERICAN WITH GAS AND OIL FOR OUR FAMILIES AND CARS
WHY DO THESE PEOPLE IN CHINA
HATE THE AMERICANS PEOPLE ALL OF US DID NOTHING TO HURT YOU???/
6-03-2008 @ 5:02AM
x said...
Yes, I am a fresh Chinese , I aso think it is pitty that can not buy the real iphone but the unlocked one .I don't wanna cheat anyone ,the apple inc ,but can I find an iphone from a procper way???