BEIJING, Jan. 28 -- China's State-owned Assets Supervision and Administration Commission (SASAC) would start restructuring China¡¯s telecommunications industry next month, the 21st Century Business Herald reported.

    Citing industry sources, the paper said SASAC was expected to split China Unicom, the country¡¯s second-largest mobile operator, into two parts and integrate them with the two biggest fixed-line operators, China Telecom and China Netcom Group Corp.

    The overhaul was expected to be completed by the end of the first half of this year, the newspaper said.

    ¡°Many restructuring plans are under discussion but the biggest possibility is that China Unicom¡¯s two different mobile networks ¡ª GSM and CDMA ¡ª will be split up, with GSM sold to China Telecom and CDMA to a holding firm based on China Netcom and China Unicom,¡± a source was quoted as saying.

    Rumors began circulating in the first half of last year that the government would overhaul the telecommunications industry.

    The speculation was triggered by the fact that the government would issue 3G mobile telecommunication network operating licenses this year and it would be very expensive for four State-owned phone companies to buy licenses.

    The issuing of operating licenses for 3G mobile telecommunications networks would be delayed until the fourth quarter of this year, the paper said

    (Source: Shenzhen Daily/Agencies)