22.12.2004 08:43:00 GMT
Telecom most "despotic" industry in China, says SSIC survey
Shanghai. (Interfax-China) - China's telecom service is regarded as the most monopolized industry of all business sectors in the country, according to a recent survey conducted by the Social Survey Institute of China (SSIC). 87.6% of a total of 58,275 people surveyed rated telecom as the most "despotic" industry, in a top ten list. The phrase "despotic" industry refers to industries that abuse their power and do not respect the rights of customers.
"The result shows people's dissatisfaction with telecom services, which are very much a part of our daily life," Wang Xing, an analyst with the SSIC, explained to Interfax. "Expiration of prepaid cards, unauthorized SMS (short messaging service) charging, mobile billing, and monthly fixed-line rental are among the major concerns," said Wang.
China's six telecom operators, namely China Mobile, China Telecom, China Unicom, China Netcom, China TieTong, and China Satcom, are all state-owned companies. Historically, telecom users have had very limited bargaining power against the operators and been forced to, when signing up for services, accept predefined terms and conditions, which are usually formulated in favor of the operators.
Telecom subscribers and consumer associations have tried various approaches to tackle the issue, but the outcome is still far from satisfactory. 81% of participants in the nationwide survey agreed that the overbearing practices are the direct result of having a monopolized economy, while 50% believe incomplete legislation is another major reason.
Hu Yonglong, vice office director of the Shanghai Communications Administration (SHCA), however, argued that the survey results could be the outcome of misleading media reports. The SHCA, a subsidiary of China's Ministry of Information Industry (MII), is the governing body responsible for telecom operators in Shanghai.
"Actually, telecom operators are making continuous efforts to improve their services, " Hu told Interfax, "And compared with other industries such as power, gas, and water, the rates of telecom services are actually declining, due to intensified competition."
The debate over telecom operators' services and practices continues to rage. In order to ease tensions between telecom users and operators, the MII is scheduled to launch Telecom Service Standards by the end of 2004. The national standards are expected to wipe out all inappropriate telecom service terms and conditions, and ensure a more egalitarian relationship between telecom operators and users.
China recorded RMB 475.5 bln (USD 57.44) in telecom revenues in the first 11 months of 2004, up 13.2% year on year, according to MII statistics. As of the end of November, China had 313.156 mln fixed-line users and 329.924 mobile users.
Real estate/property management, insurance, power, education, healthcare, banking, railway, transportation, and supermarket industries all followed the telecom industry in the top ten list.
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