CHINA UNICOM TO SET UP MOBILE PAYMENT SUBSIDIARY

AsiaInfo Services
02-23-2011
China Unicom to Set Up Mobile Payment Subsidiary

BEIJING, Feb 23, 2011 (SinoCast Daily Business Beat via COMTEX) -- China Unicom (Hong Kong) Ltd. (NYSE: CHU, SEHK: 0762, and SHSE: 600050) has begun to recruit employees for a new subsidiary to be established for mobile payment service.

Insiders believe that China Unicom plans to improve user stickiness through the foundation of the new company engaged in mobile Internet applications and its archrivals China Mobile Ltd. (SEHK: 0941 and NYSE: CHL) and China Telecom Corporation Ltd. (NYSE: CHA and SEHK: 0728) will follow its step.

It is the first time that one of the top three Chinese telecommunications carriers spins off its mobile payment business for independent operation. In January 2011, the 3G user growth of China Unicom reached 1.41 million, boosting its total 3G users to more than 15 million.

An analyst of Xiangcai Securities Co., Ltd. points out that mobile payment is among the few operations that carriers could have the initiative, judging from the development trend of the mobile Internet market.

A top executive of Eastcompeace Smart Card Co., Ltd. reveals that some carriers have procured the company's mobile payment cards. However, their procurement scale is small and has no great influence to its performance.

Source: www.nbd.com.cn (February 23, 2011)

KEYWORD: BEIJING INDUSTRY KEYWORD: Telecommunications SUBJECT CODE: Integrated Communications Providers
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