Chinese website enet.com.com reports that SK Telecom, the largest telecom operator in South Korea, is negotiating with China Telecom (CHA) on establishing a joint venture for CDMA services.

The report said that SK Telecom, which also owns 6.6% of the stake of China Unicom, is in contact with China Telecom in the hope of setting up a joint venture on CDMA with the latter and gradually expanding to other businesses. SK Telecom China has denied its interaction with China Telecom and said it would still maintain close cooperation with China Unicom, while China Telecom has not made any comment on this.

At present, China Telecom is awaiting the country's restructuring plan for the telecom industry. It has been rumored that during the reorganization of the industry, China Telecom will acquire China Unicom's CDMA business and obtain a whole-service license to enter the mobile industry.