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SK Telecom eyes CDMA JV with China Telecom

(Agencies)
Updated: 2008-04-23 11:01

South Korea's SK Telecom aims to team up with China Telecom for a possible joint venture to operate mobile service using code division multiple access (CDMA) technology in China.

SK Telecom, which owns 6.6 percent of China Unicom, was approaching fixed line provider China Telecom as market participants await an official announcement regarding restructuring of the telecom industry.

It was rumoured that China Telecom would buy China Unicom's CDMA network under the restructuring to help it defend its shrinking market share as land-line users switch to a mobile platform offered by China Mobile.

A source as said the South Korean telecom group would prefer a CDMA joint venture with China Telecom with a near-term focus on building a successful CDMA business in China.

A China Telecom spokesman is quoted as saying the company would not enter into talks about a strategic investor before the Chinese government grants it full-service operator status.