Chinese media are reporting on a rumor that China Unicom (CHU) will sell its CDMA network for CNY70 billion to China Telecom (CHA), but the latter wants to slash the price to RM35 billion.

China Unicom, which holds both GSM and CDMA licenses, has been the focus of China's telecom reforms. The latest news is that China Unicom's CDMA network will be transferred to China Telecom, while it will form a new company with China Netcom to develop WCDMA services. WCDMA is currently used in Japan and was developed by NTT DoCoMo as the air interface for their 3G network.

However, a representative from China Unicom has denied the news saying that they are busy with their annual report right now and the news is not true. But China Telecom has not made any comment on the report.