China Unicom And Telecom Deepen Cooperation With 4G Resource Sharing Agreement

China Unicom and China Telecom, the smaller two Chinese wireless carriers, signed a multi-pronged strategic agreement to share resources, enabling them to cut costs and better compete with larger and better capitalized rival China Mobile. In this note, we take a look at the scope and benefits of the deal and examine whether it could set the stage for a full-fledged merger between China's second and third largest wireless carriers.