China Stresses Competition in Telecom Market

China has successfully introduced competition into its telecommunications market through bold reforms and restructuring of the sector in the last few years, the Minister of Information Industry Wu Jichuan said in Beijing Monday.

The remarks were made at a press conference held by the State Council Information Office.

As a result of the reforms and restructuring, there are now six major firms, namely, China Telecom, the China Mobile, UNICOM, ChinaSat, the China Network Communications Corporation (CNC) and the Jitong Co., competing with a large number of small and medium-sized firms in the market, the minister said.

According to Wu, there are now more than two enterprises in every field of basic telecommunication services, including IDD, mobile services, long distance and local calls.

The introduction of competition has seen the end of a monopolized market, has injected new vigor into the sector and has promoted the rapid and healthy development of the industry, he said.

The latest statistics by the Ministry of Information Industry show that the market shares of major enterprises have recorded remarkable changes.

China Telecom now boasts 68.1 percent of the country's telephone subscribers, China Mobile 25.8 percent and UNICOM six percent.

China Mobile owns 81.2 percent of China's mobile phone subscribers, compared to 18.8 percent by UNICOM.

China Telecom holds 54 percent of the market share in IP services, in terms of call times, compared to UNICOM's 31.2 percent and Jitong's 12.3 percent.

The minister said that it remains the policy of his ministry to continue encouraging the development of large firms to enhance their international competitive edge and at the same time support the development and growth of newly-arising firms to ensure competition in the market.





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