Top Biz News
Firm in talks for China Unicom stake
By Li Weitao (China Daily)
Updated: 2006-06-07 09:02
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South Korean top mobile phone operator SK Telecom is in talks to buy a stake in China Unicom, the smaller of China's two cellular operators.
A spokesman for SK Telecom China said the firm has been in talks with Unicom for various partnerships, including the possible acquisition of a stake.
But "no arrangements have been finalized," he told China Daily yesterday.
According to a report by the Financial Times, SK Telecom plans to buy a 10 per cent stake in China Unicom for about US$1.1 billion.
"We are always seeking business opportunities in China," the SK Telecom spokesman said.
"But the continued delays in 3G (third generation) licensing in China and a possible consolidation of Chinese operators have made everything uncertain."
The Chinese Government has yet to decide when and how to award operators with licences to build 3G mobile communications networks.
Before licensing, the government is likely to consolidate the top four operators, reducing the number to three.
Unicom runs two separate cellular networks, based on the GSM and CDMA standards, which have put the firm under heavy financial pressure.
A senior executive with China Unicom, who asked not to be named, last month said it is becoming increasingly difficult for Unicom to operate two cellular networks.