China's third largest carrier, Unicom, has brought in other private companies to manage a network with about the same population as Spain. The company reports outstanding results. (Below) While many companies, especially in India, will contract out building and even running the networks, this appears to be going even further.
Unicom itself is now an experiment in how to connect State-owned companies with private ones. The government persuaded Internet giants Alibaba & Tencent to each buy about 10% of the company and work actively with CU management. Rumors that CU would be merged into China Telecom have not proven true. The company has been struggling.
Initial Contract-out Reform of Yunnan Branch Showed Brilliant Results
⚫ Delegated management of the access network assets, network deployment & maintenance, overall business dealing to privately-owned operating companies, in compliance with the applicable laws & regulations
⚫ Contracted out operation with profit target set
⚫ >90% of the Company’s employees migrated to the operating companies
⚫ Stock ownership to key staff to better align staff & operating company’s interests
⚫ 4G network construction sped up with private capital
⚫ Accelerated business growth with higher staff motivation
⚫ Enhanced operating efficiency with refined cost management