On February 19, a source told the Oriental Morning Post that during a meeting attended by China Unicom's senior managers, service restructuring was discussed and substantial moves are likely to be made in March.

According to a possible and widespread restructuring plan, China Unicom would probably sell its CDMA business to China Telecom and merge its GSM business with China Netcom. Certain sources have revealed that China Unicom has shifted its publication focus from CDMA business to GSM business.

The same day, another journalist also quoted a source, saying that restructuring has already been launched among those large telecommunication service providers. China Unicom and China Netcom are now engaging in stock swaps, the source added. But neither company has confirmed the information.

In addition, the State Council reportedly convened an executive meeting on February 15 for restructuring telecommunication operators and agreed upon a plan.?

For more details, please read the story in Chinese. ( http://www.dfdaily.com/node2/node27/node260/userobject1ai56934.shtml)

(China.org.cn February 20, 2008)