(SinoCast via NewsEdge) South Korea's top mobile phone carrier SK Telecom is in the middle of negotiations to buy a stake in China Unicom, company officials said.
A spokesman for SK Telecom China said the firm has been in talks with China Unicom for various partnerships, including the possible acquisition of a stake, but 'no arrangements have been finalized.'
According to a report by the Financial Times, SK Telecom plans to buy a 10% stake in China Unicom for about $1.1 billion.
'We are always seeking business opportunities in China,' the SK Telecom spokesman said. 'But the continued delays in 3G licensing in China and a possible consolidation of Chinese carriers have made everything uncertain.'
The Chinese government has yet to decide when and how to award carriers with licenses to build 3G mobile communications networks.
Before licensing, the government is likely to consolidate the top four carriers, reducing the number to three.
China Unicom runs two separate cellular networks, based on the GSM and CDMA standards, which have put the firm under heavy financial pressure.
A senior executive with China Unicom, who asked not to be named, last month said it is becoming increasingly difficult for the carrier to operate two cellular networks.
A spokesman however declined to comment on the report on SK Telecom's possible acquisition of a stake.
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