[advertise]广告[/advertise]1/5/2010, An inside person who is close to SASAC（state-owned asset supervision and administration commission of the state council ） said that cost for telecom shuffle in China reached 60 billion RMB in year 2009. On December 31 2009, SASAC announced that total budget for state-owned asset operation is 87.36 billion RMB, among them 60 billion is for China’s telecom service provider shuffle. This figure increased 33billion compared to year 2008. Also according to SASAC, in year 2009, profits they collected from those big state-owned companies decreased to 27 billion from 54.75billion in year 2008. This will mean that SASAC will have huge loss in year 2009. How to explain this 60 billion RMB? One reason is that Chinese government gave China telecom big subside. The so called telecom shuffle in 2008 is that 6 carriers at that time merged into 3 big all service carriers, China Telecom (merge with China Unicom’s CDMA business), China Unicom (China Netcom merged with old Unicom’s GSM business) and China Mobile (merge with China Railcom). After the reshuffle, all 3 new carriers got 3G licenses. Because old China telecom didn’t have mobile communication business, its profit level is much lower than China Unicom and China Mobile. For example, in year 2008, China mobile has profit 112.8 billion, and China Telecom only had 884 million RMB. That is the reason why they need huge subside. It is confirmed that China Telecom got 30-35billion RMB subside from government. Including this 60 billion, the total cost for this telecom shuffle in past 2 years reachs 100 billion RMB. This is really not a cheap shuffle.