China Unicom will be consolidating and re-aligning China's telecom companies. For the proposed merger, China Telecom will get China Unicom's GSM network and China Netcom will acquire China Unicom's CDMA services and network.

Local media also report that China Unicom's fixed-line business in northern China will be transferred to China Netcom, and the company's southern operations will be transferred to China Telecom.

Rumors of these moves in China's telecom sector have been circulating since the first half of this year. Though the details are still sketchy, analysts predict fine-tuned details to be issued soon and also greater moves within China's telecom sector in the coming months.