China Telecom, Chunghwa Telecom to set up mainland JV

Sep. 21, 2009 (China Knowledge) - China Telecom Corp Ltd<0728>, the nation's largest fixed-line operator, and Taiwan's Chunghwa Telecom Co Ltd plan to set up a joint venture in mainland China, a Taiwan-based newspaper reported on Monday, citing unnamed sources.

China Telecom System Integration Co, a unit of China Telecom, has already signed a memorandum of cooperation with the Taiwan-based carrier to jointly develop information and communications technologies, according to the newspaper.

A spokesman for Chunghwa Telecom confirmed that the two companies will cooperate in developing information and communications technologies, but declined to disclose details.

The newspaper last month also cited unnamed sources saying that Chunghwa Telecom and China Unicom (Hong Kong) Ltd<600050><0762>, the country's second-largest telecom operator, planned to set up a JV to sell telecom products in mainland China.

The Chinese government issued 3G licenses to its top three telecom carriers in January. The country's mobile phone market grew 7.3% in the first half from the second half of last year to 80.41 million units. The country is likely to have 130 million users in 2012 and about 500 million in 2015.