China is exploring a merger between two of the nation’s three wireless carriers, according to people familiar with the matter, as the nation seeks to speed up the development of 5G and gain an advantage over the US in the race to dominate the mobile technology.
The country’s top leaders are reviewing a proposal to combine China United Network Communications Group and China Telecommunications but no decision’s been made and a merger may not happen, said the people, who asked not to be identified.
At stake is the ability to shape and control 5G, the high-speed wireless technology billed as the key to revolutionising how we use everything from home appliances to cars. Concerns that China could get the upper hand led to US President Donald Trump to block Broadcom’s bid to buy chipmaker Qualcomm, in what would have been the biggest-ever acquisition in the technology industry.
"5G success is one of the most important goals to China and the merger is the perfect solution to what China wants to achieve," said Edison Lee, an analyst at Jefferies Hong Kong. "As we head into another step up in the US-China trade war, we believe the State Council would be more eager to think fresh and more radically about how to accelerate 5G roll-out."
The Hong Kong-listed vehicles of the two state-run companies, both of which trail China Mobile in scale, surged on Tuesday. China Unicom (Hong Kong) climbed 5.9 per cent, the biggest gain since November 2016, while China Telecom rose 4 per cent to the highest close since January 29. Their combined market value increased to more than $77 billion.
Chinese media has speculated on a possible merger, although executives at Unicom and China Telecom have played those down as recently as last month at their earnings briefings. On Tuesday, Unicom said it isn’t aware of a merger, a comment echoed by China Telecom. The state-owned Assets Supervision and Administration Commission, which oversees China’s state-owned enterprises, and the Ministry of Industry and Information Technology didn’t reply to queries.
The combination of Unicom and China Telecom would create a carrier with more than 590 million mobile-phone subscribers, a number that would be second only to China Mobile among wireless operators worldwide. The proposal being reviewed argues that a merger could speed up the government’s ability to push through its 5G ambitions because a combined company could make the necessary investments more easily than separately, the sources said.
_______________
Read more:
China Tower emerges unscathed from world's biggest IPO in two years
US ban cost China's ZTE at least Dh11.4 billion in losses
_______________
The Chinese government has been considering the merger of the two carriers for years but escalating tensions with the US have raised the urgency of the matter, the people said. For example, the US’s recent temporary export ban on ZTE, which nearly crippled the company because of its reliance on American technology, helped give China reason to make 5G development a higher priority, the proposal argues, according to the people.
A merger would also signal that the Chinese government would be willing to sacrifice the benefits of local competition over the speed of 5G adoption by reducing its number of phone operators to two. Most markets worldwide have three to four carriers.
China’s had its share of setbacks during its campaign. Huawei Technologies, the world’s largest maker of equipment for phone networks, and ZTE were banned last month from selling their gear to a US ally, Australia, which cited security concern. Huawei and ZTE, which aren’t able to sell their network gear to US carriers as well, have disputed they represent any such risk.
In its opposition of the Broadcom-Qualcomm deal, the US argued that the acquisition would likely cut Qualcomm’s spending on research and development, indirectly giving Huawei a greater advantage in the race to develop 5G wireless standards and equipment.
The deal would have left "an opening for China to expand its influence on the 5G standard-setting process", the Committee on Foreign Investment in the United States, or CFIUS, wrote in a letter dated March 5. Because of the "well-known US national security concerns about Huawei and other Chinese telecommunications companies, a shift to Chinese dominance would have substantial negative national security consequences”, it said.
Not everyone is cheering a potential merger.
"We don’t see any rationale for a merger of the two," Steven Liu, an analyst at China Securities International in Hong Kong, wrote in a note on Tuesday. "Instead, we believe a merger of the two could disorder the industry’s competitive landscape and restore monopoly and inefficiency."
Communications technology is part of President Xi Jinping’s "Made in China 2025" programme to make the country a leader in a range of high-tech industries. China holds a narrow lead over the US and South Korea in 5G readiness, thanks to proactive government policies and industry momentum, according to a report by research firm Analysys Mason.
Beyond geopolitics, a merger between Unicom and China Telecom would form a more formidable challenger to China Mobile, which boasts more than 900 million subscribers, in the world’s biggest mobile-phone market. It may also raise concerns at recently listed China Tower, whose business model makes the company benefit from more carriers, not fewer. China Tower shares fell by a record 6.8 per cent on Tuesday.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Results
STAGE
1 . Filippo Ganna (Ineos) - 0:13:56
2. Stefan Bissegger (Education-Nippo) - 0:00:14
3. Mikkel Bjerg (UAE Team Emirates) - 0:00:21
4. Tadej Pogacar (UAE Team Emirates) - 0:00:24
5. Luis Leon Sanchez (Astana) - 0:00:30
GENERAL CLASSIFICATION
1. Tadej Pogacar (UAE Team Emirates) - 4:00:05
2. Joao Almeida (QuickStep) - 0:00:05
3. Mattia Cattaneo (QuickStep) - 0:00:18
4. Chris Harper (Jumbo-Visma) - 0:00:33
5. Adam Yates (Ineos) - 0:00:39
UAE currency: the story behind the money in your pockets
Uefa Champions League last 16 draw
Juventus v Tottenham Hotspur
Basel v Manchester City
Sevilla v Manchester United
Porto v Liverpool
Real Madrid v Paris Saint-Germain
Shakhtar Donetsk v Roma
Chelsea v Barcelona
Bayern Munich v Besiktas
THE%20SWIMMERS
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ESally%20El-Hosaini%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ENathalie%20Issa%2C%20Manal%20Issa%2C%20Ahmed%20Malek%20and%20Ali%20Suliman%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
UAE currency: the story behind the money in your pockets
THE BIO
Favourite author - Paulo Coelho
Favourite holiday destination - Cuba
New York Times or Jordan Times? NYT is a school and JT was my practice field
Role model - My Grandfather
Dream interviewee - Che Guevara
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
UAE currency: the story behind the money in your pockets
The specs: 2018 BMW R nineT Scrambler
Price, base / as tested Dh57,000
Engine 1,170cc air/oil-cooled flat twin four-stroke engine
Transmission Six-speed gearbox
Power 110hp) @ 7,750rpm
Torque 116Nm @ 6,000rpm
Fuel economy, combined 5.3L / 100km
Killing of Qassem Suleimani
COMPANY%20PROFILE
%3Cp%3EFounder%3A%20Hani%20Abu%20Ghazaleh%3Cbr%3EBased%3A%20Abu%20Dhabi%2C%20with%20an%20office%20in%20Montreal%3Cbr%3EFounded%3A%202018%3Cbr%3ESector%3A%20Virtual%20Reality%3Cbr%3EInvestment%20raised%3A%20%241.2%20million%2C%20and%20nearing%20close%20of%20%245%20million%20new%20funding%20round%3Cbr%3ENumber%20of%20employees%3A%2012%3C%2Fp%3E%0A
LAST 16
SEEDS
Liverpool, Manchester City, Barcelona, Paris St-Germain, Bayern Munich, RB Leipzig, Valencia, Juventus
PLUS
Real Madrid, Tottenham, Atalanta, Atletico Madrid, Napoli, Borussia Dortmund, Lyon, Chelsea
Global state-owned investor ranking by size
|
1.
|
United States
|
|
2.
|
China
|
|
3.
|
UAE
|
|
4.
|
Japan
|
|
5
|
Norway
|
|
6.
|
Canada
|
|
7.
|
Singapore
|
|
8.
|
Australia
|
|
9.
|
Saudi Arabia
|
|
10.
|
South Korea
|
Syria squad
Goalkeepers: Ibrahim Alma, Mahmoud Al Youssef, Ahmad Madania.
Defenders: Ahmad Al Salih, Moayad Ajan, Jehad Al Baour, Omar Midani, Amro Jenyat, Hussein Jwayed, Nadim Sabagh, Abdul Malek Anezan.
Midfielders: Mahmoud Al Mawas, Mohammed Osman, Osama Omari, Tamer Haj Mohamad, Ahmad Ashkar, Youssef Kalfa, Zaher Midani, Khaled Al Mobayed, Fahd Youssef.
Forwards: Omar Khribin, Omar Al Somah, Mardik Mardikian.
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
MATCH INFO
Iceland 0 England 1 (Sterling pen 90 1)
Man of the match Kari Arnason (Iceland)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
PREMIER LEAGUE STATS
Romelu Lukaku's goalscoring statistics in the Premier League
Season/club/appearances (substitute)/goals
2011/12 Chelsea: 8(7) - 0
2012/13 West Brom (loan): 35(15) - 17
2013/14 Chelsea: 2(2) - 0
2013/14 Everton (loan): 31(2) - 15
2014/15 Everton: 36(4) - 10
2015/16 Everton: 37(1) - 18
2016/17 Everton: 37(1) - 25
Votes
Total votes: 1.8 million
Ashraf Ghani: 923,592 votes
Abdullah Abdullah: 720,841 votes
Profile Box
Company/date started: 2015
Founder/CEO: Mohammed Toraif
Based: Manama, Bahrain
Sector: Sales, Technology, Conservation
Size: (employees/revenue) 4/ 5,000 downloads
Stage: 1 ($100,000)
Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)
Company profile
Name: One Good Thing
Founders: Bridgett Lau and Micheal Cooke
Based in: Dubai
Sector: e-commerce
Size: 5 employees
Stage: Looking for seed funding
Investors: Self-funded and seeking external investors
RESULT
Arsenal 0 Chelsea 3
Chelsea: Willian (40'), Batshuayi (42', 49')
The%20Last%20White%20Man
%3Cp%3EAuthor%3A%20Mohsin%20Hamid%C2%A0%3C%2Fp%3E%0A%3Cp%3E192%20pages%C2%A0%3C%2Fp%3E%0A%3Cp%3EPublished%20by%3A%20Hamish%20Hamilton%20(UK)%2C%20Riverhead%20Books%20(US)%3C%2Fp%3E%0A%3Cp%3ERelease%20date%3A%20out%20now%20in%20the%20US%2C%20August%2011%20(UK)%3C%2Fp%3E%0A
THE SPECS
Engine: 3-litre V6
Transmission: eight-speed automatic
Power: 424hp
Torque: 580 Nm
Price: From Dh399,000
On sale: Now
more from Janine di Giovanni
