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Exchange of officials among telecom operators irrelevant to 3G, analysts PDF Print E-mail
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Monday, 16 July 2007
        BEIJING, July 12 (InfoChina) - China Telecom and China Unicom announced they had no news about asset restructuring or issuance of 3G license, following recent exchanges of senior officials among leading Chinese telecom carriers which triggered market guess that 3G licenses might be released soon.

It is confirmed by China Mobile and China Telecom that, Zhang Chenshuang, formerly executive director and vice general manager of China Mobile, had taken his new post, executive vice president and executive director, at China Telecom on Monday; Huang wenlin, executive vice president of China Telecom, has resigned, and will find his new job in China Mobile. China Unicom announced that Li Jianguo, executive director, would join China Telecom Group, the parent company of China Telecom.

The aforesaid personnel changes triggered market expectation that reorganization of Chinese telecom operators is closer. However, some analysts point out that the shifts are just duty rotation within industry, and irrelevant to industrial restructuring.

It is reported that Li Jianguo now takes charge of discipline examination and company culture construction in China Unicom, and the main jobs of the senior officials involved in this new round of rotation have nothing to do with the main operations of the companies either, so the aforesaid shifts will have little influence on the operation of the involved companies.

Indeed, senior officials of Chinese telecom companies had been rotated among them in the past. In 2004, even the presidents and board chairmen of the four major telecom enterprises were rotated among them.

UBS, an investment bank, reckons that the shifts will take no effect on the companies’ daily operations and has nothing to do with industry restructuring, and the bank insisted that the restructuring would be postponed to 2009.

It is also learned from telecom equipment producers that, the 3G license will not be issued this year. (Edited by Zhu Zhu)

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