Under a state-sponsored restructuring of China's telecom industry, fixed-line operator China Telecom is buying China Unicom's CDMA wireless network. China Unicom, which retains its GSM wireless network, is merging with the nation's other big fixed-line operator, China Netcom. COAI's Ramachandran points out that globally those companies do well who are in either GSM or CDMA.
However, those who agree with RCom's move say that its CDMA network -- fully depreciated -- already has the critical mass. In future, the majority of its resources may be ploughed into the GSM service.
A clear strategy will emerge after a year or so, depending on the consumer behaviour -- whether a lot of them migrate from CDMA to GSM or whether a loyal CDMA clientele remains intact. However, for migration to happen, number portability, still not allowed, will be critical.
The wrinkled little gentleman at the AGM, if he reads this article, may feel that his question remains unanswered. Or, maybe he would get his answer if he read carefully.
Image: A child stands in front of an advertisement offering low-price mobile phone connection in Jakarta. | Photograph: Jewel Samad/AFP/Getty Images
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