China Unicom will divide its marketing department into two divisions to separately serve GSM and CDMA networks. The move has strengthened expectations of a Unicom assets merger with fixed-line phone carriers.

China Unicom, the country's No. 2 mobile carrier, will establish a GSM (global system for mobile communications) network marketing department and a similar marketing division for CDMA (code division multiple access) network. The two divisions will develop clients and carry out marketing activities independently, and the transformation is expected to be completed about the middle of February. It is a market-oriented move for us to improve work efficiency, and provide customized services. China Unicom said it added 1.26 million new mobile phone subscribers in December.

This has pushed the carrier's total GSM mobile phone subscriber base to 105.87 million, and its total user base up to 142.4 million. China Unicom's move is a clear signal of coming merger activity in the Chinese telecommunications industry ahead of 3G.

China Unicom is the focus of speculation as it operates the two different networks, which has brought many operational burdens such as internal competition.

China Telecom, the country's biggest fixed-line phone operator, is expected to merge with China Unicom's CDMA network and China Netcom with Unicom's GSM business, according to investment banker and media speculation.
The mergers should be completed in the first half of this year.

Source:未知