In the recently held 2015 interim results briefing, the chairman of China Telecom Wang Xiaochu made statements on the rumor that "China Telecom and China Unicom will conduct asset reorganization", and said he didn’t receive any requirements on the merge with China Unicom.
He pointed out that the administrative and investment management rules would be announced soon on the reform of China's state-owned enterprises, and the enterprises were hoped to be market-oriented, but no details of the reorganization plans were disclosed.
Up to now, no high-level personnel have made any statements on this rumor of China Telecom and China Unicom. Due to the strong performance of China Mobile, as well as the government’s encouragements for mergers and acquisitions of state-owned enterprises, the rumor spread more widely.
Wang Xiaochu also said that the previous plan of CNY 107.8 billion capital expenditure was unchanged. In the first half of this year, the spending was only CNY 36.7 billion, accounting for 34%, the reason was that most of the projects were still under construction as planned.
China Telecom has benefited from the operation of the Tower Company. He said that part of China Telecom's 4G base stations will be built by the Tower Company, which can reduce the cost of CNY 6 billion and built 50,000 more base stations.