China Telecom prepares for world stage

Industry giants BT, AT&T and Deutsche Telekom face the prospect of going head to head with China Telecom on the international stage following a decision by the Chinese government to streamline the fixed-line operator.

China Telecom plans to spin-off non-core businesses - including hotels, schools and shops - in an effort to make it "internationally competitive". As a result 200,000 staff will be moved off the 550,000-strong payroll.

According to reports, a five-year blueprint for the company will culminate in a stock market listing possibly on the Hong Kong, or even New York, exchange. Before that, the telco is likely to seek partnerships with foreign operators.

In an interview Chang Xiaobing, China Telecom's vice president, added: "There is the possibility that strategic partners may be famous telecom operators."

China Telecom boasts 130 million fixed-line telephone users.