All China>CDMA>GSM Update;
China's Policy Changes on "CCF" Finance Model in
Telecom -A New IGI Report
PRNewswire
BOSTON, Nov, 11 /PRNewswire/ -- The
Information Gatekeepers Inc., a Boston-based
consulting company, has just published a new
report - China's Policy Changes on "CCF"
Finance Model in Telecom: How Will It Affect
Your Joint Venture in China?
BACKGROUND
The Chinese government has recently issued an internal report calling for the
ban of "Chinese-Chinese-Foreign (CCF)" or the "Zhong-Zhong-Wai"
finance model used by the country's second telecom operator, China United
Telecommunications Corp. (China Unicom). The move is viewed as a major
setback to China Unicom and foreign investors who are using the CCF
model to circumvent the Chinese government official ban on foreign
participation in telecom network ownership, operations and management.
Many foreign companies are surprised by the Chinese government's sudden
move, however, the impact of this policy change is still not clear yet.
The ban, if implemented, threatens a range of China Unicom's planned and
active projects, especially schemes for GSM digital mobile networks
involving up to US$1.4 billion of investment. Many leading international
companies such as [ France Telecom ] , [ Deutsche Telekom ] , Sprint,
[ Bell ] Canada and Telesystems International Wireless of Canada, NTT
International and Itochu of Japan, Korea Telecom and Singapore Telecom,
have formed joint venture companies to help finance and develop Unicom's
GSM and fixed networks under the CCF model. The impact of this
proposed policy change is profound and the stakes are high for both the
Chinese government and the international investors.
The change in position of the Chinese government on CCF investment
model, though seemed sudden, comes about as a result of much deliberation
within the government. The concerns of the Chinese government on the
CCF finance model are revealed in the several reports and documents on
Unicom by the State Economic and Trade Commission, the State Planning
Commission, the State System Restructuring Commission, the Ministry of
Finance and the State Council since early 1997. A thorough understanding
of the Chinese government policies concerning China Unicom is of vital
importance for foreign companies in China.
HIGHLIGHTS OF THE REPORT
This report provides a background on the recent policy changes and
delineates the time line of the government policy decisions on China Unicom
and its CCF model. It presents the main points of several important
commission reports and State Council documents, particularly the areas
concerning the CCF model. The reports examines the impact of the
proposed policy changes on China Unicom, the foreign companies and the
development of the Great Wall CDMA network in China. The following 45
major foreign companies with ventures under the CCF model and their
specific arrangements are profiled and analyzed:
AmTec Inc.; Asian American Telecom (AAT); American International
Group (AIG); Ameritech; APAC Telecommunications; Asia Link; Bell
Atlantic; Bell Canada International; BellSouth; CCT Telecom Holdings;
CNK Telecommunications Services; Cable & Wireless (C&W); Canac
Micretel; Chung Kiu Telecommunications (China) Ltd.; Daewoo; Deutsche
Telekom (T-Mobil); France Telecom; GTE; Hongkong Telecom;
Hutchison; International Wireless Communications (IWC); Itochu; Korea
Telecom; MasterCall; McCaw; Meteromedia China; Mitsubishi; Mitsui;
Nippon Telegraph & Telephone Corp. (NTT); National Telesystems; STET
International; SEM Communications; Siemens; Singapore Telecom; Sprint;
Star Digitel (Star Telecom); Sumitomo; Techno Factor; Tele Denmark;
Teleglobe; Telia; Telstra; Tomen; VDC Corp.; and Wharf.
For more information, please contact Dr. Hui Pan, Director of Asia Pacific,
IGI, Tel: 1-800-323-1088, or 1-617-232-3111, Fax: 1-617-734-8562,
E-mail: hpan@igigroup.com. You can also view the table of contents of the
report on line at IGI's Web site: www.igigroup.com. SOURCE The
Information Gatekeepers Inc.
(Copyright 1998)
_____via IntellX_____
Publication Date: November 11, 1998
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