Mobile operator China Telecom’s acquisition of CDMA network assets from its parent company was completed on 31 December 2012, the company announced on Wednesday.
As TelecomFinance reported back in August, China’s third largest mobile operator said…
Mobile operator China Telecom’s acquisition of CDMA network assets from its parent company was completed on 31 December 2012, the company announced on Wednesday.
As TelecomFinance reported back in August, China’s third largest mobile operator said it would buy the CDMA network held by its parent company for an initial consideration of Yn84.6bn (US$13.3bn).
The acquisition was subject to a price adjustment of up to Yn3bn (US$472m), but the operator did not reveal the exact deal value in Wednesday’s statement.
UBS is advising China Telecom on the transaction.
The aim of the acquisition was to eliminate rapidly rising lease fees which were impacting profits.
China Telecom is not the only Chinese operator looking to avoid costly lease fees by acquiring assets. As TelecomFinance reported in November, rival telco China Unicom announced it was looking to acquire fixed line assets from its parent company Unicom Group for the same reason.
