China mulls Telecom restructuring, delays IPO

World IT Report, Apr 9, 2003

China's State Council is considering a restructuring of the nation's incumbent, China Telecom. The restructuring, first announced by China's MII in May, will most likely include a breakup of the Company into a number of smaller players.

Different options for such a breakup are being considered, including dividing the giant into regional players, most likely a Northern and a Southern player, and dividing it according to business sector local, long distance and data transmission.

The Company's development plans have been put on hold until a decision is made. The IPO planned to raise as much as $10 billion, earlier scheduled to take place this year, will most likely be postponed until next year at the earliest. Poor market conditions could also be a factor in the delay. -(World IT Report)