China Unicom said on Wednesday it expected to get a third generation (3G) licence after it merges with China Netcom and that capital expenditure could amount to $14.6 billion in the next two years to fund wireless infrastructure.
As a result of the proposed merger, the wireless capital expenditure of the enlarged group is expected to be "very substantial" and may reach 100 billion yuan ($14.6 billion) in 2009 and 2010, the company said in a statement.
Beijing unveiled a long-awaited revamp of its telecoms sector on May 24, designed to boost competition, in what has been called the world's largest industrial reorganisation [ID:nHKG143379].
The plan called for a merger of China Unicom, the smaller of two mobile players, with China Netcom, as part of a wider plan to create three national, full-service telecoms carriers.
Source:Reuters
