China Telecom to Spend $11.7 Billion on Mobile Unit From Unicom

By Mark Lee and John Liu

July 28 (Bloomberg) -- China Telecom Corp., the nation's biggest fixed-line telephone carrier, said its parent will spend 80 billion yuan ($11.7 billion) to add base stations and switches to the mobile-phone business it's buying from China Unicom Ltd.

China Telecommunications Corp. will spend the money over the next three years, China Telecom said in a statement distributed at a briefing in Hong Kong today. China Telecom and its parent are paying 110 billion yuan for Unicom's wireless business based on the code division multiple access technology.

To contact the reporters on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net; John Liu in Shanghai at jliu42@bloomberg.net.