China needs to further break up monopolies in its telecommunications
sector in the coming years to promote competition and help the
fledgling sector develop a more competitive edge, said a senior
expert.
The move is seen
as one of the most important steps planned for the successful
transformation from the planned economy to a market economy
in the telecommunications sector, which is now witnessing
rapid growth.
Zhou Qiren, a senior
expert with the China Center for Economic Research under Peking
University, said China needs to add several comprehensive
common carriers plus hundreds and thousands of resellers,
competitive access providers, competitive local exchange carriers
and other specialized service providers in a move to build
a more competitive system to replace the current framework
which features only one comprehensive common carrier - China
Unicom - following the breakup of the China Telecom conglomerate.
The country has
already moved towards breaking the State monopoly in telecommunications
sector by kicking off several new service providers, such
as China Unicom, Jitong and the Railway Telecom, and the splitting
of China Telecom in 1998.
Speaking at the
China Economy Forum for the New 10th Five-Year Plan (2001-05),
Zhou said a more efficient competitive system in the telecommunications
sector should be based on three to four comprehensive common
carriers and the development of new technologies.
He suggested that
more favorable policies should be offered in a move to stimulate
growth of the sector, including allowing telecommunications
companies to issue IPOs (initial public offerings) on both
A-share and overseas stock markets.
He also unveiled
that China Telecom, the current fixed-line operator, is applying
for a license from the Ministry of Information Industry for
mobile services, but that the deal has not been finalized.
Zhou also called
for an integration of the completely fragmented cable TV market
and the opening of the cable TV market to both domestic and
foreign investors.
"China has
already promised to open its domestic market to foreign investors
after its WTO entry, so it is natural that the market should
be open to domestic investors," said Zhou, adding that
the government should make efforts to break down the separation
between telecom and cable TV companies to enable them to have
access to each other.
(China Daily 03/30/2001)
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