Telecom industry reorganization to a new version, a new round of executives to prepare for 3G

JasonYoo

Telecom industry reorganization to a new version, a new round of executives to prepare for 3G [Copy link]

A new round of executive changes in preparation for 3G?

　At the stalemate before the issuance of 3G licenses in China, the telecom industry, which had been silent for several months, broke out a new version of restructuring: China Unicom and Netcom will merge, and a new round of telecom executive changes will be launched. A

　new round of executive changes?

　The new version of the rumor learned by reporters yesterday is that Wang Xiaochu, the current general manager of China Telecom, will be transferred to become the general manager of China Mobile. After the merger of China Unicom and Netcom, Chang Xiaobing, the current general manager of China Unicom, will be the boss, and Zhang Chunjiang, the current chairman of China Netcom, will go to China Telecom to serve as the top leader. In addition, the rumor claims that Wang Jianzhou, the current general manager of China Mobile, will be the best candidate for the next Minister of Information Industry.

　The latest version of the plan does not mention the two smallest operators, and its biggest highlight is the detailed replacement of executives.

　A senior industry insider revealed that the relevant departments are still discussing the relevant restructuring plan, and personnel changes are not ruled out. Previously, China had experienced a major rotation of executives of the three major telecom operators, and the protagonists were the aforementioned Wang Xiaochu, Chang Xiaobing, and Wang Jianzhou.

　Since May 2004, when the news of the reorganization of several major domestic operators began to appear, there have been endless versions of the reorganization. Last year, when the rumors of reorganization were particularly hot, was even called the "telecom reorganization year". The most representative versions of the reorganization are "four into two" and "six into three". The former believes that China's telecommunications industry will form two giants, "China Mobile + China Netcom" and "China Telecom + China Unicom"; the latter believes that the combination will be "China Telecom + China Tietong", "China Mobile + China Satellite Communications", and "China Netcom + China Unicom".

　Industry insiders are shocked

　. After hearing this news, most industry insiders were shocked. Professor Lv Tingjie of Beijing University of Posts and Telecommunications believes that it is unlikely. He said that Li Rongrong, director of the State-owned Assets Supervision and Administration Commission, had set the tone for the reorganization of the telecommunications industry, and the previous reorganizations of China's telecommunications industry were mainly split, such as the split of China Telecom into north and south, and only Netcom merged with Xiao Netcom and Jitong. "Through these practices, the industry has found that integration is more difficult than splitting." He believes that the possibility of maintaining the status quo is higher at present.

　Yu Yang, president of telecom consulting firm Analysys International, also believes that China is unlikely to conduct large-scale restructuring before issuing 3G licenses. Restructuring requires 9 to 12 months of integration, especially since China Unicom and Netcom are both listed companies. The restructuring risk is relatively high and shareholders may not be willing to do so. He believes that the most likely model is a slow restructuring as 3G is rolled out.

　However, some other industry insiders have affirmed the inevitability of restructuring. Shu Huaying, a professor at Beijing University of Posts and Telecommunications, once said that one of the reasons for the delay in issuing 3G licenses is that the restructuring of operators has not been finalized. Another expert, Wang Yuquan, believes that the time for China's 3G licensing is approaching, and China Telecom and China Netcom, two fixed-line operators, may be the first to obtain licenses. Due to the limited number of licenses, it is inevitable to restructure the telecommunications industry and merge some operators before the licenses are issued.