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China Mobile to acquire China Railway Communication

Sahil Nagpal 23 May 2008

Beijing - China Mobile wireless plans to takeover fixed-line China Railway Communication in a long-awaited industry overhaul that also involves smaller telecom providers Unicom and Netcom, Xinhua news agency reported Friday.

The move also involves a personnel reshuffle, though Wang Jianzhou, president of China Mobile, will head the combined company, Xinhua reported.

Zhang Chunjiang, chairman of Netcom, the smaller of China's two fixed-line carriers, will be the merged company's new party boss - traditionally a political appointment.

Li Zhengmao, a Unicom vice president, will be vice-president at the larger company. Netcom Senior Vice President Zhang Xiaotie also joins China Mobile.

Chinese regulators are seeking to boost the competitiveness of fixed-line operators as more people choose mobile services. (dpa)

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