China Telecom recently signed an agreement with China Unicom, promising them that it would open its domestic long distance telephone domains.

Starting March 1, 2000, China Unicom will began long distance telephone services in 25 major cities including Beijing, Shanghai, Tianjin, Guangzhou and Wuhan, using China Telecom's existing domestic telephone networks. Customers wishing to use China Unicom do not need to register, just dial "193" before the area code.

China Unicom's long distance telephone fees may be 10% lower than the prices set by the national government. A spokesman for China Telecom says that its long distance telephone rates would not go down for the time being, but did not rule out the possibility of a price war due to the impending competition.

China Unicom is China's second largest telecommunications corporation behind China Telecom. Its services are currently limited to cellular phones, beepers, IP telephone calls and fixed municipal telephone calls in Tianjin, Chengdu and Chongqing.

China Telecom has held a monopoly over China's long distance telephone services until this agreement was signed.