To: Rolla Coasta who wrote (675 ) 1/21/2001 1:01:29 AM From: Rolla Coasta Read Replies (1) | Respond to of 23908 China Unicom gains military's cellular network chinaonline.com (3 January 2001) The People’s Liberation Army (PLA) handed over its 133 CDMA mobile communications network to China Unicom Group on Jan. 1, giving the telecom company a monopoly in building, operating and managing a CDMA technology network. China Unicom Group, the parent of China Unicom Ltd., is China’s No. 2 telecom carrier. Company officials have said the code division multiple access network could eventually be sold to the Hong Kong- and New York-listed China Unicom Ltd. unit but noted that it will initially be owned and operated by the parent company. The move, approved by the State Council and the Central Military Commission, is meant to bolster China Unicom Group’s competitiveness vis-à-vis China Mobile, China’s largest mobile communications provider, which uses global system for mobile communications (GSM) technology, the European standard. The government had announced plans for the transfer half a year ago, which revived the China prospects of the U.S.-based Qualcomm Corp., the initiator of the CDMA wireless standard. The CDMA network already operates in five provinces and three cities: Beijing, Shanghai and Tianjin. Its operating capacity is 750,000 mobile phones, while current subscribers number 550,000, according to the Jan. 2 Jisuanji Shijie (China Computer World). The network’s advanced mobile phone service (AMPS) and digital advanced mobile phone service (D-AMPS) equipment will also be handed over to China Unicom Group, as will the 2x10 megahertz (MHz) cellular frequency resources and the mobile phone numbers originally assigned to the PLA. According to industry executives, the expansion might initially increase capacity to 10 million users, Dow Jones Newswires reported. News of the planned expansion helped boost the share price of Qualcomm, which earns royalties on CDMA equipment. Foreign and domestic equipment vendors, such as Nortel Networks Corp., Motorola Inc., Samsung Electronics Co., and Eastern Communications Co., could also benefit from as much as US$2 billion in supply contracts, Dow Jones noted. China Unicom Group currently has more than 18 million mobile phone subscribers, of which 13 million were added in 2000.