Chinese Telco Restructuring Opens Sales Opportunities
From Yahoo News:
Analysts say AsiaInfo (NasdaqGM:ASIA), a Beijing company, which sells key back-office support to wireless carriers, is set for explosive growth after China announced a massive wireless industry restructuring in May. The announcement spurred investor interest in the company driving up its share priсe more than 15% in the weeks following the news. AsiaInfo is the leader in its market. It provides software that helps China Mobile and Unicom with billing, setting up customer accounts, customer management and data analytics.
Chinese telco restructuring will create two strong carriers to compete against market behemoth China Mobile (NYSE:CHL). China Mobile has been the clear market dominator with more than 65% of wireless cell phone users and having little threat from China Unicom. China Unicom (NYSE:CHU) the country’s No. 2 mobile phone company, will buy China Netcom Group (NYSE:CN) for $23.8 billion in stock. China Unicom also will sell part of its wireless business to fixed-line carrier China Telecom (NYSE:CHA) for $15.9 billion, creating the third wireless provider.
