Wu Jichuan Deciphers Hot Issues about China Telecom

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Last updated at: (Beijing Time) Tuesday, February 25, 2003

Wu Jichuan Deciphers Hot Issues about China Telecom

China Telecom held a group working conference in Beijing on February 23. Wu Jichuan, Minister with the Information Industry, attended the conference and delivered a speech. As revealed, a new government will be elected and formed at the 10th NPC and 10th CPPCC scheduled for early next month. By then, Wu Jichuan will retire from the present post.

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China Telecom held a group working conference in Beijing on February 23. Wu Jichuan, Minister with the Information Industry, attended the conference and delivered a speech. As revealed, a new government will be elected and formed at the Tenth National People's Congress (NPC) and Tenth Chinese People's Political Consultative Conference (CPPCC) scheduled for early next month. By then, Wu Jichuan will retire from the present post.

Wu Jichuan highly praised the successful listing of China Telecom in the United States and Hong Kong. He considered it a really tough job for China Telecom to get listed under such circumstances in which the world telecom industry was in a serious depression.

He held that it was an irresistible trend to break the trade monopoly. The Civil aviation and electric power sectors have already finished reorganization. Listing also means a pressure for the internal administration body of China Telecom. The group should pace up internal informationization and adopt process reorganization. However, enterprise informationization does not simply mean replacing labor with computer, which would only end up with augment of computers instead of finding a solution of problems. On the contrary, the crux of matter lies in power redistribution of managerial personnel at all levels, which is definitely not tantamount to a technological question.

Although China's main communications lines boast large transmission capacity, telecom companies after the reorganization still witness constructing their own optical fiber cables. In this regard, Wu Jichuan argued competition was bound to bring about repetition of construction, but the point was whether it was reasonable or not. To meet this criterion, construction should accord with the market rules. If companies with optical fiber cables set a reasonable price for letting out lines, it is well worth renting rather than constructing one's own optical fibers. So, none will prefer construction. Why are there so many special networks in China? Wu Jichuan spelled out it was because owners of major public networks raise too high rents.

China Telecom last year reported an increase of 1,85mn broad-band subscribers, which marked a total of 2.54mn. Coupled with a 48-percent increase of incomes from digital services, subscribers to incoming telegram display services rose by over 80 percent, an equivalent of 23.25mn. This year China Telecom aims at another 20mn phone subscribers. Wu Jichuan pointed out that, judging by features of phones for home use, two phone-sets were not enough for every family, but one phone in one room would be better. Yet, not every phone could be charged with monthly services. Therefore, if a second or third phone will be reduced or even exempted from monthly services charge, not only installation amount of telephones will be greatly raised, but also the people's life demand be satisfied. As for the government, it should make timely adjustments to policies and rules in compliance with technological advancement and social development.

By PD Online Staff Zhu Lizhen

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