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Last updated at: (Beijing Time) Tuesday, November 27, 2001

MII Official Confirms China Telecom Breakup

Recent reports said that China Telecom will be split into two parts, information industry minister Wu Jichuan confirmed the news. State Council has decided on a breakup of China Telecom into two, northern and southern group.


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Recent reports said that China Telecom will be split into two parts, information industry minister Wu Jichuan confirmed the news.

Wu said in CCTV's interview on the program of China Financial Report that the State Council has decided on a breakup of China Telecom into two, northern and southern group. The former will run China Telecom's business in 10 provinces as China Network Telecom Jitong Company and the latter will still as China Telecom carry on its business in 21 provinces, with each party giving a full play to its edge in competition, he added.

When reporter asked when the group will be split, Wu said that some detailed procedures relating to capital transfer and telecom network transmission work are underway.

Wu said that China Mobile is not involved in the division, only China Telecom is to be split into two parts when asked whether Netcom has the right to operate China Mobile's business.



The establishment of China Telecommunications corporation (CHINA TELECOM) is an important representation of strategic reform and restructure of China's telecommunications industry and is a new starting point of the industry for further progress based on the existing development.

As the primary telecommunications enterprise, having been strongly supported by the state and with arduous efforts made by several generations of telecommunications working staff, CHINA TELECOM has made brilliant achievements. Its network scale, technology level and service quality have jumped to a higher level and service quality have jumped to a higher level. CHINA TELECOM has made important contributions to the opening-up and reform of the country, economy development and people's life quality improvement.

Facing the surging tide of the information technology revolution throughout the world, CHINA TELECOM is undertaking heavy tasks for development and reform. Encountering ever increasing market competitions at home and abroad as well as ever increasing consumption requirements from all social sectors, the over 500,000 working staff of CHINA TELECOM group is confident and capable to meet every kind of challenge. They will further quicken development, through technology , mechanism and management creations and enable CHINA TELECOM to become a large enterprise group that will be able to represent the actual capability of China's telecommunications industry and will possess real and comprehensive competitiveness internationally in 5 years.


By PD Online Staff Li Yan
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