Fourth China telecoms operator not seen as threat to ‘Big Three’
CBN has applied for a basic licence, including telecommunications infrastructure and domestic internet data transmission services
When news broke last Wednesday that the Ministry of Industry and Information Technology (MIIT) was considering granting a basic telecommunications services license to the state-owned China Broadcasting Network (CBN), the Hong Kong-listed shares of the mainland’s “Big Three” operators were rocked as the prospects of a fourth domestic telecommunications market player apparently spooked investors.
Industry leader China Mobile, the world’s largest wireless network operator by subscribers, saw its shares slide to HK$88.75 that day, down from HK$89.40 on Tuesday. The stock finished up on Friday at HK$91.30.
China Unicom tumbled to HK$9.44 from Tuesday’s HK$9.74. It closed at HK$9.43 on Friday.
Shares of China Telecom, the mainland’s largest fixed-line network operator, were down to HK$4.04 from HK$4.17 on Tuesday. It fell to HK$3.93 at the end of the trading week.
We do not think [CBN] will become a meaningful threat to the Chinese telecommunications network operators in the next few years
According to mainland media reports, the MIIT confirmed on Thursday via its Weibo account that the CBN applied for the basic licence that included telecommunications infrastructure and domestic internet data transmission services.