In July this year, the Ministry of Communication Development Division, Zhang Feng, the State Council Information Office press conference has publicly said that the Ministry of Industry is developing a pilot program for private capital to enter the telecommunications industry, and is expected to be introduced in the near future. Shi Wei, director of the Development and Reform Commission, the Institute of Economic System and Management industry chamber said, previously held by the Committee of Experts of the Ministry of Telecommunications quarter summit, experts and industry insiders has private capital into the telecommunications industry open path, capital market supporting and supervision of a range of issues in the discussion. He pointed out that the private capital to enter the field of value-added telecommunications services, will be the trend of the times.
The MIIT introduced in June of this year, ?encourage and guide private investment into the telecommunications industry further implementation of views? (hereinafter referred to as the ?Opinions?), to encourage private capital to enter the eight areas of the telecommunications industry further, including encouraging private capital to launch mobile the pilot communication resale business; encourage private capital to carry out pilot access network business and the business of CPN; encourage private capital to carry out the business of web hosting; encourage private capital to develop value-added telecommunications business.
The experts, the pilot program will be introduced to further refine the way of private capital into the telecommunications industry and the path, in addition, will gradually pilot corresponding qualification to allow private capital to enter specific telecommunications business, as well as the provisions of the public funding. It is reported that the access network, the part of the business in the mobile communications resale business, as well as value-added telecom services to private capital will be the first release.
According to insiders, the access network, mobile communications resale business and telecommunications value-added services are rented operator?s network or equipment, to provide users with various types of telecommunications services. For example, like current foreign telecom industry is more popular types of video-on-demand, low-cost or free international calls business fall into this category. At present, the three businesses in the country are allowed a certain extent China-owned, but most need by operators. The pilot program will further liberalization of the public funding to allow private capital to pay a certain network and equipment rental costs, independent operators said business.
Years as an account manager in the UK telecommunications companies such as O 2, London School of Economics, international business administration, Dr. Deng declared told the ?Economic Information Daily? reporters, operating according to the development of the telecommunications industry in Europe and the United States and other countries, once the access network, mobile communications revolutions retail business and telecommunications value-added services to the public funding and opening up the telecommunications market will appear on a wide variety of new services, for example, is very popular in Europe and the United States cheap or even free to call the service, which will promote competition in the telecommunications industry to expand new markets and consumers to benefit from it. Deng declared that, based on the European experience, if private capital is able to obtain the qualifications of the business to operate independently, the market will quickly appear cheap call business services, such as popular in Europe and the United States ?a penny to play international long distance calls for free off-peak periods ?business will appear in the domestic market.
Deng declared for example in the United Kingdom a private company launched called ?Savers Card? phone card, the nominal value of 10 Yingbang can dial international long distance 1000 minutes, an average of 1 minute 1 pence (100 pence is equal to 1 Yingbang), while the nominal value of 20 Yingbang the phone card you can make an international call 2500 minutes, an average of 1 minute 0.8 pence; addition, there are many telecommunications service providers, launched in non-peak hours or weekends free to call or phone services, as well as the ?Stop theclock? services, ie The user dials the telephone or mobile phone, such as
If more than three minutes of talk time, no matter how long, are received only three minutes of call charges.
Insiders said, ?one minute to make long distance? telecommunications services ?free cell phones? is not a dream. IT industry veteran analyst Wang Yijiang told the ?Economic Information Daily? reporters, to allow public funding operations of these businesses, the cost of renting the network of telecom operators and equipment costs are fixed costs, cost recovery, provide the appropriate service vendors, far below the standard tariff operators to provide services to users, foreign experience, even if it is 1 cent 1 minute call charges, as long as the user, the manufacturer can still profit.
ZTE?s Research Department, Qiu Hao, a researcher said in an interview with the ?Economic Information Daily? reporters, If the field is open to the public funding, will give rise to a more diverse and flexible telecommunications services, the new market will continue to expand. By then, not only the telecommunications industry, will appear in more healthy competition pattern, industry chain will also enrich and improve many telecom equipment manufacturers, will also benefit.
However, the reporter found for private capital to enter the field, the industry is still relatively large controversy. China Unicom, a value-added business department official told the ?Economic Information Daily? reporters, China-owned operator Telecom value-added services and operators, once can freely operators, regulatory challenges will produce unimaginable ?If someone from the operators here rent equipment and servers, and then repeatedly sublet to others, it is possible to provide an opportunity to the illegal activities of telecommunications fraud, and porn sites ?in the interview, China Mobile and China Telecom stakeholders also expressed the same concerns.
These concerns, is widely believed, the reason why the carriers are opposed, because once the relevant business open to the public funding, private capital will get some pricing power on the part of the telecommunications business, and trigger a new round of telecom tariff reduction, This will impact current income and monopoly operators ?the operators concerns have some truth, but these problems can be solved by strengthening the regulatory, legislative and other means.? said Wang Yijiang. Shi Wei also said that private capital into the basis of the laws and regulations of the telecommunications industry should accelerate the formulation, there is no legal protection, open not enough stability and continuity.
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