Presently hopping between HK, Shenzen and Beijing there has been a good flow of information on the recent buyouts by large Chinese companies. Mostly from irritated traders on the Hang Seng, who will be making all their money back in the coming weeks.
A subscriber breakup of 297 million for China Telecoms, 258 million for China Unicom and 425 million for China Mobile is certainly a better alternative to the present, fragmented, telecommunications industry in China. This wave of buyouts was forced on the local companies by the government as it works to strengthen the telecommunications industry in the most populated country in the world.
This is all well and good as it is the right step to take if the government wants to have a balanced and competitive industry. Of course, with a subscriber base at almost double any of its competition, China Mobile is the 800 lbs gorilla. Let us see how things roll out when the much baited 3g licenses are released. It is a fairly level playing field, one that will give the underdogs a fighting chance.
I am just glad that there seems to be some sort of agreed upon result from the last few months of negotiations. All of these grand industrial steps have been slowing thins down for the other players in the industry. It will be nice to get some attention again.
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