Nigerian deal may not pay dividends for China Unicom

BEIJING - China Unicom may find it hard to benefit from its shared 75 percent acquisition of Nigerian Telecommunications Limited (Nitel), according to analysts.

Xiang Ligang, a telecoms expert who runs a major website in China, said lack of funds may make it difficult for China Unicom to expand overseas, and the Nigerian deal will not provide a handsome reward for the company.

In addition, the expenses incurred from the construction and operation of China Unicom's 3G business - which is still in its initial phase - will weigh heavily on the company, especially as it faces intense competition from the other domestic operators - China Mobile and China Telecom, said Xiang.