China Mobile Communications Corp. (CHL), China's largest mobile operator, announced Friday that it will acquire China Tietong, giving credence to a report earlier in the day that the restructure of China's telecom industry has begun.

"China Tietong will be merged into China Mobile and become its wholly-owned subsidiary. It will retain relatively independent operation for the time being," China Mobile said in an announcement.

CCTime.com, a telecom news portal founded by Xiang Ligang, the former editor-in-chief of Communications Weekly, reported Friday that a telecom restructuring plan was "announced" at 10:00 this morning. However, at the time of writing, there has been no official confirmation of the announcement.

In addition to China Mobile's acquisition of China Tietong, China Unicom (CHU) will sell its CDMA network to China Telecom (CHA) and China Unicom's GSM assets will merge with China Netcom (CN) to become a "new China Unicom," accor...

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