According to inside sources with the operators, China Unicom (NYSE: CHU; 0762.HK; 600050.SH) and China Netcom (NYSE: CN; 0906.HK) have formed 6 working groups to negotiate and develop concrete plans related to the integration of the two companies. The groups include a business planning group, a network group, a marketing and branding group, a finance group and a human resources group.

Analysts have pointed out that one of the problems facing the new Unicom will be whether to follow a divisional management model, or a matrix management model. It is believed that Unicom is more likely to adopt the matrix management model, meaning that the marketing, network, finance and business departments of Netcom and Unicom are in for another round of adjustments.

 Source:Sohu IT