China Telecom was called Directorate General of Telecommunications, P&T, China at first. In 1995, it was registered the legal representative, from then on, separating enterprises from government management. In 1998, the post and telecommunications services separated, specializing in the telecommunications operation. In 1999, the services, satellite services and mobile services were separated out from China Telecom. In 2000, China Telecom was established officially.
During 2001 to 2002, in order to break monopoly in the fixed telecommunications field, having been separated the mobile services, China Telecom was divided into the north and south part. In May, 2005, newly reformed China Telecom and China Netcom were established officially. The telecommunications companies in ten provinces, including Beijing, Tianjin, Hebei, Shanxi and Inner Mongolia of North China, Liaoning, Jilin and Heilongjiang of Northeast China, Henan and Shandong, belonged to the north part of China Telecom. Others belonged to the south part of China Telecom.
China Netcom Group Corporation (Hong Kong) Limited was merged by the north part of China Telecom together with China Netcom and Jitong Network Communications Company Limited.
The south part of China Telecom maintained the name, possessing the name of China Telecom and the intangible assets. Chinese telecommunications market was gradually formed the competition patterns with the basic telecommunications companies of China Telecom, China Netcom, China Mobile, china Unicom, China Satcom and China Tietong.
During the long development process, China Mobile Limited had been the giant of Chinese mobile communications industry. In 2008, the service revenues of China Mobile Limited reached to 412.3 billion Yuan (58.9 USD), up by 15.5% of 2007, realizing the annual net profits of 112.8 billion Yuan, up by 29.6% of 2007. Calculation by the users, China Mobile Limited had been the largest operator of Chinese mobile communications. By the end of December, 2008, the users of China Mobile Limited were 457.3 billion, up by 23.8% of 2007, the revenues and profits of China Mobile Limited exceeding the total sum of China Telecom and China Unicom.
By the end of May, 2008, the prelude of the fourth reform of Chinese telecommunications industry was officially started. The CDMA internet merged by China Telecom, China Tietong entry China Mobile, the integration of China Unicom and China Netcom, represented that Chinese telecommunications industry had entered the age of tripartite confrontation. After the mergers, the reformed China Telecom, China Mobile and China Unicom all had fixed networks, mobile licenses, the qualification of all service operations, marking the new competition stage of Chinese telecommunications industry.
There are three purposes for the mergers: first, strengthening the competitiveness of the operators; second, changing the disparate competition pattern; third, creating service reform opportunities for the operators.
The newly built China Unicom obtained the 3G license, the largest scale and well-rounded in the world. Because of its mature industry chains and the low price for the equipment, the newly built China Unicom had advantages in the competition of 3G service.
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