China Telecom to buy mainland business
27/10/2003 15:10
China Telecom Corp. Ltd, a Hong Kong-listed arm of China Telecom
Corporation, China's largest telecom operator, announced today plans to purchase
six provincial phone networks on China's mainland from its parent company for 46
billion yuan (US$9.6 billion), the Sina.com reported.
The company will pay 11
million yuan in cash and the remaining 35 billion yuan over 10 years.
Under
the installment plan, it will pay interest every half-year, with the yearly rate
at 5.184 percent for the initial five years.
The six mainland networks
include landline phone businesses, data and Internet services in Anhui, Fujian,
Jiangxi and Sichuang provinces as well as Chongqing city and Guangxi Zhuang
Autonomous Zone.
Playing a dominant role in the telecom sector there, China
Telecom controlled 98 percent of the regions' landline phone market by the end
of June. It expects to make a combined profit of 6.4 billion yuan this year in
these six areas.
Jane Chen / Shanghai Daily news
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