Unicom plans 100b yuan expansion

China Unicom Ltd, the nation's second biggest mobile phone carrier, has said it may spend as much as 100 billion yuan to expand wireless networks as it seeks to narrow the gap with China Mobile Ltd.

The proposed investment covers spending in 2009 and 2010, according to a Unicom statement to the Hong Kong stock exchange yesterday. The Beijing-based company said previously that 2008 capital expenditure on its wireless network would be 18.7 billion yuan.

The increase will allow Unicom, whose market share is less than half of China Mobile, to add networks in rural areas and introduce third-generation services. Competition in the world's biggest phone market will intensify as carriers are now permitted to offer both fixed-line and wireless services following a government plan to reorganize the industry.