Beijing Company of China Telecom is an emerging telecom operator under China Telecom Group. In 2007, the company realized operating revenue of 2.455 billion yuan and net profit of 470 million yuan. Analysis shows that this acquisition means that China Telecom is actively preparing for telecom reorganization and paving the way for integration after the acquisition of C Network of Unicom. As China Unicom has been using a system where only the head office is an independent legal person and each provincial company is a local branch, it will be conducive for China Telecom to change the system of each provincial company so as to realize system connection with China Unicom (600050), which is beneficial to acquire and accept assets of C Network of Unicom.