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China's Reform of Telecom Sector Yields Results, Official
The Chinese government has roughly put in place a system under which the government function has been separated from enterprises and the enterprises can run on their own, a senior Chinese official said in Hong Kong December 5 when speaking of the progress of China's reforms of its telecom sector.
Wu Jichuan, China's minister of information industry, said at a press conference during the ITU Asia 2000 held in Hong Kong, his ministry merely functions as an administrative body responsible for "the overall planning of the development of the nation's communication network."
The ministry is also responsible for formulating technical standards and drawing market supervision regulations, since market supervision is very important after the market economy was introduced and the enterprises were left run on their own, said Wu.
Wu stressed that the supervision does not mean interference in enterprises' operational affairs, instead, the ministry is responsible for maintaining the good order in market competition, forming a fair, open and orderly competition environment.
After reforming of the telecommunications system, Wu said a competition mechanism is in place with six major telecom players involved in basic telecommunications and about 3,000 enterprises engaged in value-added telecommunication businesses.
Wu stressed the importance of tightening regulation of the telecommunication market after the reforms were implemented. "It is very important to have the relevant regulations in place," he said.
As for China's attitude on foreign investment in its telecoms, Wu said that China would introduce clear regulations on foreign investment in telecoms by the time when China formally joins the World Trade Organization.
When asked about the possible adjustments on telecom charging system, Wu said a one- way billing system for mobile phone use would not be introduced within "one or two years" but the information ministry is studying the issue.
Wu admitted that there were "irregularities involved" in the current rate of telecom tariffs since the pricing system was formed during the planned economy period.
He said a standard tariff would eventually be introduced for calls made from the Chinese mainland to Hong Kong but the issue is "still in the process of research and study."
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