China Sets Up Two Giant Groups in Telecom SectorAfter more than two years of deliberation and preparations, the China Telecommunications (Group) Co. and the China Mobile Telecommunications (Group) Co. jointly announced their establishment April 20.Speaking at the inaugural meeting, Minister of Information Industry Wu Jichuan said that the establishment of the two groups marks the strategic restructuring and a new breakthrough in China's telecommunications industry. "This is a big event in the history of China's telecommunications development, it will surely play an active role in accelerating telecommunications development, promoting an information-oriented national economy and raising the competitiveness of China's information industry in the international market," he said. The registered capital of China Telecommunications (Group) Co. and the China Mobile Telecommunications (Group) Co. is 220 billion yuan and 51.8 billion yuan, respectively, both ranking among the country's State-owned extra-large companies. Wu said that the leadership of the two companies has been ratified by the State Council. According to Wu, China's telecommunications industry has been developing rapidly in recent years, giving a great push forward to the country's opening up and reform drive and modernization construction. The restructuring of the telecommunications sector over the past few years has improved the competing and development capability of the industry as a whole. Last year China's telecommunications industry realized a growth of 24.6 percent in business revenues, ranking forefront among all industries. He said that the two companies will operate independently. The Ministry of Information Industry will play an administrative role to step up its macro-control and guidance functions over the whole industry. |
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