More open and market-oriented policies are to be adopted to
nurture a fair competitive telecom market, according to a report
from the Ministry of Information Industry (MII) on last weekend's
national information technology conference.
Wu Jichuan, minister
of MII, said the government would give telecom operators more
freedom to decide charge standards by themselves.
"In the reform
of telecom charges, more rights will be given to the companies.
As for some mature telecom business, market and companies
are the final price setters," Wu said.
Internet phone
(IP) business is a good example, Wu said.
Starting from this
year, MII will no longer decide the charge standard of IP
business. Charges are now set by the individual telecom operators.
The resulting price
war on January 1 led to consumers seeing cuts of up to 50
percent.
Consumers could
benefit from such price battles in other fields too, Wu said.
The minister's
remarks painted a rosy future for telecom customers.
"To hurry
up the construction of a fair competitive market, MII will
carry on its unparalleled management method and give more
preferential policies to minor telecom operators," he
said.
A relatively competitive
telecom market has already emerged, Wu added.
China has seven
telecom operators at present, but two of them, China Telecom
and China Mobile, control the market in fixed-line and mobile
telecom businesses.
However, the other
five are to get a MII boost to nurture their rapid growth,
Wu said.
"The charge
standard of minor telecom operators could be lower than the
major players," he said.
MII plans this
year to launch a "conglomerate strategy" in which
the ministry will help create a group of international big
companies.
Wu said three or
four domestic IT firms should realize total sales of 40 billion
yuan (US$4.83 billion) and eight to 10 should reach sales
of 20 billion (US$2.42 billion) this year.
The ministry this
year is to recommend five companies to go public abroad. Wu
said he hoped one or two of them could make IPOs (initial
public offerings) before the end of the year.
The long-expected
Telecom Law is under busy preparation and is expected to be
launched soon. The law would upgrade telecom management to
the legislation level and further ensure a competitive marketplace,
according to the minister.
In the 10th Five-Year
Plan (2001-05) period, Wu said China will become the biggest
telecom market in both number of telecom users and network
capacity.
By 2005, China's
fixed-line telephone users are to number somewhere between
220 million and 260 million, which is one-fifth of the total
amount of worldwide fixed-line telephone users.
China's mobile
phone population is expected to account for one-fourth of
the world's total with 260 million to 290 million.
China's IT industry
should double its size every five years, and soon become a
technology leader in the international market, Wu said in
the ministry report.
(People's Daily
02/21/2001)
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