China's Telecom Reform Enters Third Stage

China's telecom reform has entered the third stage, Deputy Director Zhao Xiaofan of the Promotion Department, Ministry of Information Industry pointed out at an IT Forum for Chinese enterprises called recently.

The first step for telecom reform is a "horizontal cut", that is, to separate enterprise from government administration. The second step is "vertical" in the way competition is to be encouraged among telecom enterprises. Policy support will be given to new enterprises; monopoly and unfair competition by old enterprises will be prevented. The third step is to be introduced a mechanism of competition by Chinese enterprises with foreign counterparts in China.

Presently telecom reform in China has entered the third stage, Zhao said. Our IT phone business is being run by five companies, International Gateway by three companies, and there will be more of like lines to be projected. Customers will be helped with greater choices in developing China's telecom industry.



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