Telecommunications Market Formed Competitive Structure

In the first half year among national telephone subscribers, China Telecom shared 68.1%, China Mobile shared 25.8% and China Unicom 6%. In terms of long distance transmission, China Telecom and China Unicom respectively owned the proportion of long distance optical cable by 86.6% and 13.4%. Among the mobile subscribers, China Mobile's accounted for 81.2%, China Unicom's accounted for 18.8%. In the area of newly emerged IP telephone, China Telecom, China Unicom and Jitong Company shared the talking hours by 54.4%, 31.2% and 12.3% respectively.

The above news is attained from the news release of the Ministry of Information Industry.

It is known that according to the scheme made by the State Council, the former China Telecom split into four companies, operating independently fixed telephone, mobile telephone, satellite and pager business respectively.

Currently, China's communications and information services market have formed the situation of backbone enterprises competing and developing together with many small to medium sized enterprises. Those key enterprises include China Telecom, China Unicom, China Mobile, China Satellite, China Netcom, Jitong Company and etc. In the fundamental telecommunications area, including international calls, long distance calls, local calls, mobile services and etc., two or more operating companies are doing the competition at the same time. It is learnt that, in order to use the existing network resources, the Ministry of Information Industry (MII) will continue to support the development of main telecommunication enterprises and enhance the competitive advantages internationally. MII will greatly bolster newly emerged telecommunication enterprises to speed up their growth. MII will also allow some special communication network to enter the market regularly after the restructuring.



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