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China Netcom denies merger talks

(China Daily HK)
Updated: 2006-12-06 09:52

China NetcomGroup Corp. (Hong Kong) Ltd, the smaller of the mainland's two fixed-line operators, yesterday denied speculation that it was on the verge of merging with rival China Unicom in the industry's biggest reshuffle in four years.

A girl plays hide-and-seek at a public phone booth in Nanjing, capital of east China's Jiangsu province May 18, 2006.China NetcomGroup Corp. (Hong Kong) Ltd, the smaller of the mainland's two fixed-line operators, yesterday denied speculation that it was on the verge of merging with rival China Unicom in the industry's biggest reshuffle in four years. [Reuters]

Zuo Xunsheng, Netcom's chief executive, told Reuters in an interview that its State-owned parent body had no plans to raise its stake in Hong Kong's dominant fixed line carrier, PCCW Ltd.

In 2002, the mainland split its lone fixed-line carrier along north-south lines.

Now, industry executives and analysts say it is close to pushing another industry overhaul to make the sector leaner as it is to adopt 3G.

"We're not inmergertalks with Unicom. It's all market speculation," he told Reuters on the sidelines of the ITU Telecom World 2006.

"We're confident in getting a mobile licence it won't be far off but I don't know the exact time or what standard we'd be getting," said Zuo, who is also deputy general manager of listed Netcom's State-owned parent firm.