More re Peter Wonacott: Here are my recent e-mails to him and his responses (start at the bottom)>
XXXXX
Thanks for your note. In reporting from Beijing for three years and now HK,
I've seen how long it's taken for Unicom to roll out CDMA. Like the DJ
article states, Im sure the company isn't abandoning the asset (surely it
wouldn't behoove them to alienate potential investors now) but there's a lot
of uncertainty as to when it will be deployed. So currently Unicom's
priority seems to be on developing GSM. I double checked this Wednesday with
the underwriter who gave me this information for Tuesday's article. She
assured me that's what Unicom officials are telling the underwriting
syndicate. Perhaps more of this will be explained in the company's listing
prospectus.
Hope this helps, and please feel free to exchange any thoughts or
information you have in the future on this subject.
Regards,
Peter Wonacott
-----Original Message-----
From: XXXXXXX [mailto:XXXXXXXX]
Sent: Wednesday, 17 May, 2000 22:01
To: Wonacott, Peter
Subject: Re: China Unicom article
Peter-
Thanks for getting back to me. I'm sure you've seen the article below from
Dow Jones and the comments from China Unicom.
XXXX
China Unicom: Still Awaiting Govt Word On
CDMA Rollout
Dow Jones Newswires
BEIJING -- China United Telecommunications Corp.'s plan to deploy
networks using code division multiple access, or CDMA, mobile
communications technology remains on hold just weeks ahead of its
multibillion dollar initial public offering, a company spokesman said
Wednesday.
"We are still waiting for an official decision by the government," Zhang
Jiakun, an official in the company's news office, told Dow Jones
Newswires. "Relevant (government) departments are working on this, and
we can't do it until they provide their views."
The CDMA rollout is part of plans by China United Telecom, or Unicom,
to raise up to $4 billion in an IPO slated for June. The unit to be listed,
China Unicom Ltd., controls the right to develop networks based on
CDMA, as well as to existing mobile networks based on the competing
GSM standard.
As reported, Unicom, the country's second largest telecoms company,
plans to use the proceeds from its IPO to help finance a three-year 104.8
billion yuan (US$1=CNY8.28) expansion program, according to the
company's prospectus.
Unicom struck a deal in February with U.S.-based Qualcomm Inc.
(QCOM), which holds most of the patents to CDMA, on the licensing
terms for CDMA use by Chinese mobile operators. Within a week,
however, foreign executives involved in CDMA projects in China said the
government had suspended the CDMA rollout.
At a news conference in March, Premier Zhu Rongzhi denied reports of a
government suspension, but said CDMA projects had been delayed
because Unicom failed to properly coordinate its plans with the Ministry of
Information Industry, the country's telecoms regulator.
"I think it won't be long before there is a settlement to this question,"
Zhu
said.
Unicom's Zhang said despite the continued delay, Unicom hasn't given up
on CDMA.
"We are moving forward with GSM," he said. "(But) I haven't heard
anyone say Unicom is abandoning CDMA to go all out on GSM."
-By Jason Dean; 8610 6532-6652; jason.dean@dowjones.com
----- Original Message -----
From: "Wonacott, Peter" <Peter.Wonacott@awsj.com>
To: "XXXXXXXXXXX" <XXXXXXXXXXX>
Sent: Tuesday, May 16, 2000 11:07 PM
Subject: RE: China Unicom article
> Mr XXXXX
>
> Thank you for your note.
>
> First of all, to address the tail end of your response to my article, I
> don't report rumors. The part of the article you take issue with came from
> an interview with an underwriter, who is very familiar with Unicom's
> development plans. Also, the pre-marketing listing documents - which I
> obtained from a fund manager - mentions only that the company has received
> approval to develop a CDMA network. In essence, it's identifying an asset.
> However, this document doesn't say whether, how or when Unicom will
develop
> this network. The SCMP article, you may note, doesn't either.
>
> As you probably know, CDMA has been mired in red tape for years while GSM
> networks are going up all over China.
>
> Hope this answers your query. From your note, it appears that you are
quite
> interested in the company. I'd be happy to discuss your views on Unicom or
> China's telecom market. Please call anytime.
>
> Regards
> Peter Wonacott
> (852) 2831-2503
>
> -----Original Message-----
> From: XXXXXXXX [mailto:XXXXXXXXXXX]
> Sent: Wednesday, 17 May, 2000 13:05
> To: Wonacott, Peter
> Subject: China Unicom article
>
>
> Mr. Wonacott-
> I am writing regarding your article about China Unicom's public offering.
I
> take issue with the following statement:
>
> "In another possible blow to foreign companies working with Unicom, the
> company has decided to set aside plans to develop its code division
> multiple access, or CDMA, technology, in favor of upgrading its global
> service for mobile communications, or GSM, network."
>
> What is your source? Has the company actually made such a statement? Or,
> is this just a rumor?
>
> Here's an article from today's South China Morning Post that directly
> contradicts your statement:
>
>
scmp.com
> 904409.asp
>
> The article states in pertinent part:
>
> "The flotation is part of Beijing's attempts to turn China Unicom into a
> credible competitor to dominant China Telecom, after giving it priority to
> develop the CDMA (code division multiple access) mobile-phone network and
> granting it paging giant Guoxin Paging free of charge.
>
> Assets to be included in the listing vehicle, according to the document,
are
> China Unicom's cellular businesses in 12 provinces and cities and the
right
> to develop the CDMA network."
>
> Please explain. Thanks.
> XXXXXXX |
