Wu said in CCTV's interview on the program of China Financial Report that the State Council has decided on a breakup of China Telecom into two, northern and southern group. The former will run China Telecom's business in 10 provinces as China Network Telecom Jitong Company and the latter will still as China Telecom carry on its business in 21 provinces, with each party giving a full play to its edge in competition, he added.

When reporter asked when the group will be split, Wu said that some detailed procedures relating to capital transfer and telecom network transmission work are underway.

Wu said that China Mobile is not involved in the division, only China Telecom is to be split into two parts when asked whether Netcom has the right to operate China Mobile's business.

( November 27, 2001)