To: Midnightsun who wrote (432 ) 2/7/1999 10:37:00 PM From: eric larson Respond to of 530
Recent articles re China IP Telephony & Telecom Equipment Licensing: [ See Message 7707400 for "Financial Investor" Feb 5, 1999 update ] MII Official Disputes Court Ruling on IP Telephony January 28, 1999 nikkeibp.asiabiztech.com . (BEIJING) -- The method of categorizing Internet Protocol (IP) telephone services is the subject of controversy in China, with large phone service revenues at stake. In the government's first apparent response to a recent Fuzhou court ruling that Internet Protocol phone services come under the category of computer information services and are open to the public, an official at the Ministry of Information Industry said that only Internet information services, excluding IP phone and fax, are open to public. A strict permit-issuing system will be introduced only when conditions are ripe, according to Xu Mutu, director of the market administration group of the MII's Telecom Bureau. "We are stilling building and improving facilities for the new sector, and studying how to operate and manage such facilities," Xu said. Xu's remarks came after the Fuzhou Intermediate People's Court in eastern China's Fujian province decided in favor of Chen Yan and Chen Zhui, who were charged with "illegally setting up an international telephone service on the Internet." Xu argued that China's IP phone service should be administered by the unified State telecommunications Department, and that no one would be allowed to run an IP phone business without prior examination of their qualifications and a business permit. However, Zhang Dongsheng, an official at the State Development Flanningn, said that China should encourage the growth of the IP phone service to improve the range of choices available to international callers. (Xinhua News Agency) ---------- nikkeibp.asiabiztech.com . China Tightens Licensing for Telecom Equipment January 25, 1999 (BEIJING) -- The Ministry of Information Industry (MII) issued the first series of special licenses for 18 Chinese and foreign manufacturers of telecommunications equipment. The move is aimed at combating smuggling and the marketing of inferior goods, as well as to encourage foreign companies to transfer technology to China. This month, China restructured the licensing system for telecommunications equipment by consolidating the power in the MII. Previously, the licensing system was controlled by several authorities. Under the new system, telecommunications equipment made by Chinese and foreign companies for the domestic market will require special tags. Products without the tag cannot be sold or used in China. Among the first companies that obtained licenses are Shanghai Bell, Motorola Inc. of the United States and Nokia of Finland. Zhang Chunjiang, director general of the MII's Bureau of Telecommunications Administration, said that experience indicated that many overseas-funded companies failed to meet their commitments on technology transfers and export goals. Instead, those companies refused or delayed technology transfer using various excuses and sold almost every item of their product range in the Chinese market. Zhang said that the new policy is also designed to combat rampant smuggling that threatens the survival of China's makers of telecom equipment. In order to prevent smugglers from attaching fake tags to products, the tags feature anti-piracy technology. MII will phase out all old tags under the previous licensing system within 12 months. The first to be abolished will be those on mobile phones, which are favorite products of massive smuggling rackets. To guarantee service quality to license applicants, MII has set up two administration centers in Beijing. Also, it has abolished the practice of issuing licenses on a quota basis. Instead, various models can be sold in unlimited amounts. (Xinhua News Agency)