Chang Xiaobing, president of China Unicom (CHU) and a deputy to the National People's Political and Consultative Committee, says that China Unicom will not reduce the investment on its network because of the restructuring of the telecom industry. Instead, he says that the company will invest no less than CNY20 billion to upgrade its GSM network.
Chang says that China Unicom usually decides the investment on its network based on its development demand, but it is the company's consistent policy in the recent two years to increase investment on its GSM network. Chang says though there is not yet a concrete plan on the restructuring, his company believes that now is and ideal time to do the work and issue 3G licenses this year.
In response to published reports that China Unicom may organize another round of financing on the stock market, Chang reiterated that the company has no plans of financing before the telecom industry reorganization and 3G license issuance.
Meanwhile, Wang Jianzhou, president of China Mobile, estimates that his company will offer funds of CNY8 billion this year to develop the rural market in China. Wang disclosed at a press conference last week that China Mobile received an average of over 5.67 million new users each month last year and in January this year it saw an increase of more 7 million new users.
Wang also mentioned that the TD-SCDMA service is expected to be formally launched before the Beijing Olympic Games begin in August 2008.