China Unicom to lose price preference when market shares hit 30-35%

BNP and Credit Suisse First Boston cited China Mobile (0941) management as saying that China Unicom (0762) would never enjoy price preference when its market shares hit 30-35%.

Chinese Authority allowed that China Unicom (0762) can price its service 10-20% lower than China Mobile, a move expected to expand the former¡¦s market slices and help it compete with China Mobile. However, the price privilege will be withdrawn when its market shares approaches that of China Mobile.

By the end of last year, China mobile claimed a lion¡¦s share of 77-78% while China Unicom seized 22-23%.

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