Two Chinese telcos battles over a license

date: November 21, 2001

The possibility that the Chinese government will issue a third mobile license in the country has sparked off a skirmish in the press between China Mobile and newcomer, China Netcom.

A day after a Chinese newspaper quoted a senior official from Netcom as saying that the new carrier would get a mobile license in the near future, officials at Hong Kong-listed China Mobile threw cold water on the issue.

The unnamed China Mobile official told Reuters that the relevant regulatory authority has told the company that the Chinese government does not have any plans to issue a mobile license to Netcom.

The market is rife with rumors that the Chinese government will soon hand out another mobile license due to China’s entry into the World Trade Organization.

China Telecom, China Railcom and China Netcom have been reported in the Chinese press as potential candidates for China’s third mobile license. The Ministry of Information Industry however has not made any public statements.

Shares in China Mobile and rival China Unicom have been battered recently by speculation of another competitor coming into the market.

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last updated: January 12, 2004

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