To: SKIP PAUL who wrote (20905 ) 1/6/1999 9:07:00 PM From: Ruffian Respond to of 152472
Maybe The Q will Be Invited To Play> China ready to open market to telecoms Journal of Commerce After several false starts, China appears finally to be moving to open its telecommunications market to real competition, which is likely to benefit U.S. and other foreign supplies of technology and equipment. Ending the effective monopoly of state-owned China Telecom is linked with efforts to join the World Trade Organization. That has been blocked by the United States, which is insisting on more open markets, especially in services. China Telecom operates local and long-distance service, mobile communications, paging services and data communications. The Ministry of Information Industry drew up several suggestions for breaking that stranglehold, but none was deemed acceptable by the governing State Council. Its latest version is expected to get the necessary approval, analysts said. Under the proposal, China Telecom will be split into distinct companies for local phone service, cell phone operations, satellite transmissions and paging. It would retain its international service franchise. Each new company will be restricted to its area of specialization at the outset, but allowed to compete in other areas later, the Shenghuo Shibao (Life Times) said. China United Telecommunications Corp., known as [ Unicom ] , was set up in 1994 as a joint venture among the ministries of electronics industry, power and railway to rival the information ministry's grip. It hoped to engender competition and cut very high installation and other charges. Unicom accuses China Telecom of stunting its growth by refusing to provide network interconnections. China Telecom revenue is estimated at 180 billion yuan ($22 billion) for 1998, 112 times those of China Unicom. Under the latest proposal, China Unicom and the newly independent cellular phone company spun off from China Telecom will be supervised by the information ministry. The two will be on equal footing in terms of access to local networks and fees. The breakup will also end China Telecom's practice of using the profit from one sector to subsidize losses in another, which gives it a huge competitive advantage over China Unicom. (Copyright 1999) _____via IntellX_____ Publication Date: January 06, 1999 Powered by NewsReal's IndustryWatch ...back to top