China Unicom to pour RMB 10 bln into Guangxi in 5 years

Jul. 2, 2009 (China Knowledge) - China Unicom (Hong Kong) Ltd<600050><0762><CHU>, the country's second largest telecom operator, recently signed a framework agreement on strategic cooperation with the government of Guangxi Autonomous Region to pour RMB 10 billion into the region in the next five years to support the development of its telecom industry, the official Xinhua News Agency reported.

Under the agreement, China Unicom this year will spend RMB 3 billion in the region. The telecom operator will develop e-government and e-commerce in southern China's Guangxi Autonomous Region and will eventually make it a hub for information exchange between China and the Association of Southeast Asian Nation (ASEAN).

The telecom operator will also accelerate the construction of its 3G mobile network in the region and aims to extend its network coverage across all Guangxi by the end of this year.

China Telecom Corp Ltd<0728><CHA>, the nation's largest fixed-line operator, last month also signed a similar framework agreement with the local government to invest RMB 10 billion in the region.