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China to open up mobile telecom sector [Copy link] 中文

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Post time 2013-1-16 16:51:17 |Display all floors
China is planning to allow privately-owned companies to enter the mobile telecommunications sector in a bid to promote competition in a field that is dominated by three telecom giants.

In a plan released last week, the Ministry of Industry and Information Technology (MIIT) said it will seek opinions on a pilot program for private enterprises to buy mobile telecom services from operators and resell them to end customers.

The ministry said the program aims to allow private capital to further enter the telecom industry, give full play to the flexibility and creativity of private firms, as well as promote market competition and improve mobile telecom services.

Li Haiying, an expert with the China Academy of Telecommunication Research under the MIIT, told Xinhua on Tuesday that the program will effectively break the monopoly of major operators and stimulate innovations in business patterns of the mobile telecom sector.

At present, China's mobile telecom sector is dominated by three giants -- China Mobile, China Unicom and China Telecom.

According to the plan, Chinese-funded private companies will be able to buy basic mobile telecom services from the major operators, add their own services and then sell to customers through their own brands.

The companies will not have to build a mobile telecom infrastructure but only set up a customer service system and other supporting networks if necessary, the plan said.

The pilot program has a series of clauses to ensure the successful accession of private capital into the sector, including requirements on service quality, phone number allocation, as well as the wholesale prices for contracted services.

"The wholesale price charged by major mobile carriers should be lower than the lowest retail price of the same kind of service," the plan said.

Telecom giants must not include any exclusive clauses in the contract with private enterprises, it said.

Li said such policy designs aim to create an environment for fair market competition.

Shi Wei, an expert with the Institute of Economic System and Management under China's top economic planner, said that private firms participating in the program must strive to make innovations in their services, or else they will become just agents for major carriers.

"Private companies should develop more innovative applications and provide differentiated services to win their share of the market," Shi said.

Li also said that private enterprises have ample room for innovations and can provide diversified services of their own.

"Private enterprises in the reselling business and major mobile carriers are not only cooperation partners but also competitors," Li said.

The pilot program is designed to last for two years.

Private enterprises can send applications to telecom authorities within the first year of the program.

China has attached great significance to encouraging private investment, as it plays an important role in creating jobs, boosting domestic consumption and maintaining sustainable economic growth.

In 2010, China's State Council, or the Cabinet, announced policies to open a range of government-run industries to private investment, including water projects, power generation, mining, as well as the telecommunication sector.

To help implement those policies, the MIIT made a detailed plan for guiding private capital to enter the telecom industry in June 2012.


Source: Xinhua

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Post time 2013-1-16 19:35:03 |Display all floors
More competitions is good for ordinary Chinese.

Monopoly in China's electricity grid.
Little comeptition in electricity grid industry. The price of commercial and residential eletricity price is published by China's gov, not deciding by market competition.
State Grid owned most of electricity grid in China. Sometimes local gov have to make a concession when dealing with State Grid. Of course the employees in that company have a sky high salary. It's one of the best jobs to work in State Grid.
our life is full of sunshine

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Post time 2013-1-16 21:19:47 |Display all floors
and still the WEST doesnt buy it; they still think not secure enough to invest with or without the present of CCP  {:soso_e109:}{:soso_e109:}
a man who uses his hands is a laborer. one who uses his hands and his mind is a craftsman. but he who uses his hands, his mind, and his heart, is an artist...

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Post time 2013-1-16 21:38:12 |Display all floors
youknowhat Post time: 2013-1-16 21:19
and still the WEST doesnt buy it; they still think not secure enough to invest with or without the p ...

I think that there is rather a restriction to secure the market for domestic enterprises :)

BTW. partly foreign-owner company can also be based in China, and share the market under Chinese law - should also work with this industry

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Post time 2013-1-16 22:19:38 |Display all floors
WhiteBear Post time: 2013-1-16 05:38
I think that there is rather a restriction to secure the market for domestic enterprises :)

BTW.  ...

of course national interest comes first, and doubt about it but still dont have to treat china like a "special state"  
a man who uses his hands is a laborer. one who uses his hands and his mind is a craftsman. but he who uses his hands, his mind, and his heart, is an artist...

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Post time 2013-1-18 12:34:18 |Display all floors
This post was edited by greendragon at 2013-1-18 12:35

Commissar TTT

NEAT TRICK!
Not all revenue merchants are "profitable", unlike OIL, GAS, COAL industries!
Telco, Airline, Rail, Road, Electricity generation (sometimes ports -air, sea) requires "massive" REINVESTMENTS. Normally, that means up to 50% gearing vs assets.

Privately owned means - LOYAL "state institution lieutenants", and are "creating credit" in their own right.
Competition means - These "LOYAList" has to keep on innovating to maintain competitiveness of their trades!

Cheerios!

Green DRagon
Home Guards
Field Marshall

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