More winners than losers in China's telecom restructuring

Reducing China MobileÆs dominance should result in more competition, better services and lower prices in the largest mobile phone market in the world.

Many observers are in two minds about the latest round of telecom restructuring in China announced last week. While there is recognition as to the benefits of more competition, the financial losses suffered by China Mobile shareholders, and the use of government fiat to carry out the restructuring, is causing plenty of raised eyebrows.

The Chinese governmentÆs approach transcends shareholdersÆ concerns with short-term financial returns and is clearly aimed at reining in a market operator that has had too much...

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