The parent company of Hong Kong-listed China Unicom has signed a memorandum of understanding with South Korea's SK Telecom to form a joint-venture wireless Internet business in China.
The proposed joint venture aims to provide value-added services to customers on the mainland No 2 carrier's 2.5 generation code division multiple access (CDMA) platform when it is launched later this year.
The two parties are proposing to build a CDMA wireless Internet service as well as the necessary content to serve China Unicom's customers, according to a SK Telecom spokesman. SK Telecom would also provide consultancy and training on wireless Internet services to China Unicom based on its experience in Korea, the mainland carrier said.
The parties will not disclose details on the investment scale and split of equity interest in the joint venture until October, when a working party will have completed detailed studies and testing, the SK Telecom spokesman said.
China Unicom president Wang Jianzhou said: 'The co-operation will strengthen the development of China Unicom's wireless Internet services, enhance its competitive advantages in the area of CDMA services, and elevate the position of both parties in the wireless Internet technology sector.'
Analysts were neutral about the joint- venture plan, saying it would not have any immediate financial impact on the carrier.
