A source from a provincial level China Netcom subsidiary has claimed that the company recently issued a notice that required all Netcom subsidiaries to cease signing cooperative framework agreements with China Unicom (NYSE: CHU; 0762.HK; 600050.SH). Only those agreements signed before June 2, can continue to be carried out, and for any agreements signed after that date, Netcom subsidiaries should discuss with Unicom to end the agreement. In addition, Netcom subsidiaries should halt the development of joint business promotions as well as systems work on joint-run service outlets. A Netcom source believes that such efforts will not be allowed to continue until all staff and assets from the two companies have been fully integrated.

Source:China Business News