Chinese phone companies ordered to share networks, says AP

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According the Associated Press, Chinese regulators has orderd that phone companies in China to share their networks with their rivals amid plans of a restructure that would introduce a 3G service in the market.

This action is claimed to hold down costs and avoid any duplication as each of the carriers roll out their own 3G service, according to China’s Ministry of Industry and Information Technology.

The introduction to 3G to China is expected to give several foreign companies trillions of dollars as carriers go upon their way to upgrade their own networks. China is the world’s biggest mobile phone market by subscribers, having more than 590 million subscribers in total.

The government had already delayed issuing 3G licenses while they restructure the state-owned telcos to be more competitive and innovative.

The restructure of state-owned telecommunication carriers will now allow them to sell mobile telecommunications, home telecommunication and internet access. It will also rearrange them into three groups: China Mobile, China Telecom and China Unicom.

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