Briefly outline the effect of the China telecommunications industry restructuring announced in May 2008. In particular, explain how this restructuring will condense six companies into three, and list the business segments that will end up in each of the remaining three.
“Industry Shakeup Creates 3 Telecom Giants,” China Daily, 25 May 2008 In a brave industry shake-up, Beijing has ordered its six telecom companies to merge assets and create three hi-tech conglomerates that will compete with each other to offer fixed, mobile, broadband, and future telecom services. The overhaul is expected to have a long-lasting effect on a massive and rapidly growing market. China, with 1.3 billion people, is already the world leader in mobile phone and Internet users. The central government will issue three third-generation wireless licenses to the three mega companies after the overhaul is completed, sources told chinadaily.com.cn..... (Refer to Book)