On May 24, the Ministry of Industry and Information Technology, National Development and Reform Commission, and Ministry of Finance jointly issued a notice on the restructuring of the telecom industry. The three commissions clearly proposed that this reorganization will be combined with the issuance of 3G licenses. China Telecom is encouraged to acquire the CDMA business of China Unicom, while China Unicom and China Netcom are to merge, China TieTong is to be incorporated into China Mobile, and China Satcom's basic telecommunications business is to be merged into China Telecom. This will form three market competition entities that possess nationwide network resources, relatively close strength and scale, and have the ability and strong competitiveness to operate all businesses.