According to a source at one operator, restructuring talks between China Telecom and China Satcom will begin in August. "China Telecom is going to wait until talks with China Unicom are almost over before they talk to China Satcom," the source said. "China Satcom carries responsibility for Olympic communications, so the real restructuring will have to wait until after the Olympics."

The source estimated that half of China Satcom's employees would go to China Telecom, with the other half going to the China Aerospace Science and Technology Corporation. China Satcom employs more than 500 people at its headquarters and 4,000 to 5,000 people nationwide; many of them hold positions shared between China Satcom and China Aerospace.

Editor's Note: On May 24, 2008, the former Ministry of Industry and Information (MII) issued an announcement regarding the further reforms and restructuring of the Chinese telecom industry and announced that the basic telecommunications business of China Satcom would be transferred to China Telecom.

Source:C114