Beijing is reportedly planning a merger between China United Network Communications Group Co. and China Telecommunications Corp., two out of the country's three major mobile service providers. The move is being considered as Beijing strategizes on how to overreach the United States in launching the 5G network according to sources.
People with direct knowledge of the matter told Bloomberg that the Chinese government is reviewing a merger that would give birth to a single mobile carrier with as much as 590 million users. The possible merger has reportedly gotten the attention of the officials because one company with combined assets can make investments on 5G more convenient and fast.
The sources explained that China has been looking into a possible merger since years ago but the ongoing US-China trade war has pushed them to decide on the matter as soon as possible.
Still, the Chinese government has yet to reach a final decision. At this point, the merger may or may not happen. The companies involved in the supposed merger refused to respond to Bloomberg's request for comment.
Establishing a 5G network is a key development being sought by President Xi Jinping under his "Made in China 2025" project. The program hopes to make the country number one in the high-tech industries.
China is currently at a narrow point lead against the United States and South Korea in terms of 5G readiness according to Bloomberg, citing data from research firm Analysys Mason. At the center of this race is the desire to hold the title for the first nation ever to develop a smart city connected via the internet-of-things or IoT.
In terms of the number of companies pursuing 5G network, the United States is a step ahead according to a separate report from Bloomberg. For one, AT&T has announced in January that it would introduce the service in different cities across the states by the end of 2018. T-Mobile US Inc. has promised $40 billion worth of investment in a 5G network that would be accessible to 90 percent of the Americans by 2024.
Reports about China's planned megamerger spread as Qualcomm said it is ramping up the rollout of its ultra-fast 5G networks. The company is a telecommunications equipment that designs and market wireless telecommunications services in the United States.
On Sept. 4, reports emerged that Qualcomm is going to launch 5G as early as April 2019 and all U.S. consumers are going to have a 5G phone after the rollout.
