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China To Revamp Its Entire Mobile Industry (AAPL)(CHU)(CH)(CHL)(MOT)(NT)(ERIC)

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By Douglas A. McIntyre Published
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In a reorganization of China’s telecom industry, which would be almost unimaginable in the West, the country plans to merge two of its largest mobile companies, China Netcom (CN) and China Unicom (CHU). The new firm will be issued on of the three high-speed wireless licenses which the government plans to grant.

China’s two largest phone companies, China Mobile (CHL) and China Telecom, will receive the other two contracts.

According to Reuters, the 3G development will "unleash billions of dollars in spending for network gearmakers." Those companies would include Nokia (NOK), Nortel (NT), Ericsson (ERIC),and Motorola (MOT).

The news many also be a benefit to handset makers as they rush to offer products for the new 3G networks. Apple (AAPL) has still not found a home for the iPhone in China. More competition among carriers will give it a greater chance to strike a good deal. A new market could also give some aid to Motorola’s flagging handset sales and to rivals Samsung and Sony Ericsson.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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