China Unicom is working on integrating with China Netcom, in accordance with the nation's telecommunications reshuffle scheme.

China Unicom and China Netcom held a conference recently, discussing how to work together in terms of business and equipment purchase before the planned merger, said sources, without disclosing details of the conference.

After the integration, China Unicom will lead the new company's operation in South China while China Netcom will take charge of the business in the north, according to people close to China Unicom.

The two companies have not set up organizations for the regrouping yet, said executives for the companies, adding that the merger still needs approval from shareholders of both sides on the general meetings to be held in September.

China Unicom Ltd. unveiled its plan on June 2 to take over China Netcom Group Corp. (HK) Ltd. via a share swap.

Source:SinoCast via