China United Telecommunications Corporation Limited (CUTCL) (600050.SH) has re-contracted a comprehensives service agreement with its parent company China United Telecommunications Corporation (China Unicom Group), according to an announcement of CUTCL.

China Netcom (0906.HK; CN.NYSE) was involved in the new contract as transactions between the company and its subsidiaries and China Unicom Group would be CUTCL-connected when its indirect holding company China Unicom (0762.HK; CHU.NYSE) incorporates China Netcom.

In addition, upon scheduled merger becoming effective, China Unicom's company name will be changed from "China Unicom Limited" to "China Unicom (Hong Kong) Limited".

Furthermore, since CUTCL expected to acquire a 3G license after the regrouping, there will be large expenditure on its mobile business development, which may reach 100 billion yuan in 2009 and 2010, China Securities News reported.

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Source:Xinhua