Chinese telecommunications giant China Telecom Corporation considers forming a new subsidiary responsible for the business of its CDMA network, people close to the giant disclosed in an interview on September 3.

The giant's listed subsidiary China Telecom Corporation Ltd. (NYSE: CHA and SEHK: 0728) was set to take over CDMA subscribers and the related business from China Unicom, and the giant CDMA assets from it, according to an earlier announcement by the giant. The listed subsidiary will pay rents to its parent company to operate the CDMA business, a positive effort to reduce its operating and accounting cost pressure.

The listed subsidiary hopes to add the CDMA subscriber base in China to 100 million in three years from currently about 43 million, taking a 15% slice of the Chinese mobile telecoms market, the chairman and chief executive officer Wang Xiaochu recently said in a half-yearly fiscal report.

Source:SinoCast