So far, the "winner" in the breakup appears to be China Netcom, which is partially owned by Rupert Murdoch's News Corp. "News Corp. people are probably rubbing their hands, pleased with themselves," IDC's Gamble said. The New York-based company had initially invested in China Netcom earlier this year, hoping to get a piece of the pie from China's broadband entertainment and information business.
While there has been speculation that there will be consolidation among the smaller, but still significant telecom players in China, the impact on the industry is dependent on the role the Chinese government takes in managing the mergers, the analysts said. They added that the China Telecom breakup marks the beginning of a shakeup in the telecommunication industry to come.
China Telecom can be reached via their Web site at www.chinatelecom.com.cn/.