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China announced a restructuring plan for the country's fixed-line and mobile operators on Saturday, a final step towards the long-awaited release of 3G (third-generation) mobile licenses.
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The plan, long a focus of discussion among Chinese government organizations, will merge or split the operations of Chinese carriers, creating three new operators that will have both mobile and fixed-line services. At present, Chinese fixed-line operators -- which are split along geographical lines -- are not permitted to offer mobile services, while mobile operators may not offer fixed-line services.
When the restructuring is completed, China will issue 3G licenses, the government said in a statement (in Chinese) that was signed by the newly formed Ministry of Industry and Information, the National Development and Reform Commission, and the Ministry of Finance.
By restructuring the operators into companies that offer both types of services, the Chinese government hopes to enhance the competitiveness of local operators and clear the way for 3G licenses to be released. China has one of the world's biggest mobile markets, but will be one of the last to roll out commercial 3G services.
Under the restructuring plan, fixed-line carrier China Telecommunications (China Telecom) will acquire the CDMA (Code Division Multiple Access) mobile network from China United Telecommunications (China Unicom). China Telecom will also acquire China Satcom, which offers satellite-based communications services.
China Unicom will retain its GSM (Global System for Mobile Communication) network and merge with fixed-line operator China Network Communications (China Netcom).
China Mobile Communications, China's largest mobile operator, will merge with China Tietong Telecommunication, which operates a national fixed-line network.
The statement that announced the plan did not offer a deadline for when the restructuring will be completed, but a report by the official Xinhua News Agency estimated the process could take 12 months to 18 months.
