China Telecom (CHA) has rolled out a new policy for its Internet and value-added service by setting up an independent company to be responsible for the service.

According to the new policy, China Telecom will integrate its internal resources and allocate personnel to set up a new institution called "Internet and Value-added Service Operation Center", which shall be merged with Chinatelecom Information Development Co., Ltd, an affiliate of China Telecom that is responsible for the company's value-added services and to run national Internet services.

China Telecom says that the adjustment is made to promote the development of its Internet, value-added services and mobile services. And it emphasized that the new affiliate will be budgeted and operated independently.