News Analysis: China to open up mobile telecom sector

%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20is%20planning%20to%20allow%20privately-owned%20companies%20to%20enter%20the%20mobile%20telecommunications%20sector%20in%20a%20bid%20to%20promote%20competition%20in%20a%20field%20that%20is%20dominated%20by%20three%20telecom%20giants.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20a%20plan%20released%20last%20week%2C%20the%20Ministry%20of%20Industry%20and%20Information%20Technology%20%28MIIT%29%20said%20it%20will%20seek%20opinions%20on%20a%20pilot%20program%20for%20private%20enterprises%20to%20buy%20mobile%20telecom%20services%20from%20operators%20and%20resell%20them%20to%20end%20customers.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20ministry%20said%20the%20program%20aims%20to%20allow%20private%20capital%20to%20further%20enter%20the%20telecom%20industry%2C%20give%20full%20play%20to%20the%20flexibility%20and%20creativity%20of%20private%20firms%2C%20as%20well%20as%20promote%20market%20competition%20and%20improve%20mobile%20telecom%20services.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELi%20Haiying%2C%20an%20expert%20with%20the%20China%20Academy%20of%20Telecommunication%20Research%20under%20the%20MIIT%2C%20told%20Xinhua%20on%20Tuesday%20that%20the%20program%20will%20effectively%20break%20the%20monopoly%20of%20major%20operators%20and%20stimulate%20innovations%20in%20business%20patterns%20of%20the%20mobile%20telecom%20sector.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAt%20present%2C%20China%27s%20mobile%20telecom%20sector%20is%20dominated%20by%20three%20giants%20--%20China%20Mobile%2C%20China%20Unicom%20and%20China%20Telecom.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAccording%20to%20the%20plan%2C%20Chinese-funded%20private%20companies%20will%20be%20able%20to%20buy%20basic%20mobile%20telecom%20services%20from%20the%20major%20operators%2C%20add%20their%20own%20services%20and%20then%20sell%20to%20customers%20through%20their%20own%20brands.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20companies%20will%20not%20have%20to%20build%20a%20mobile%20telecom%20infrastructure%20but%20only%20set%20up%20a%20customer%20service%20system%20and%20other%20supporting%20networks%20if%20necessary%2C%20the%20plan%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20pilot%20program%20has%20a%20series%20of%20clauses%20to%20ensure%20the%20successful%20accession%20of%20private%20capital%20into%20the%20sector%2C%20including%20requirements%20on%20service%20quality%2C%20phone%20number%20allocation%2C%20as%20well%20as%20the%20wholesale%20prices%20for%20contracted%20services.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20wholesale%20price%20charged%20by%20major%20mobile%20carriers%20should%20be%20lower%20than%20the%20lowest%20retail%20price%20of%20the%20same%20kind%20of%20service%2C%22%20the%20plan%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ETelecom%20giants%20must%20not%20include%20any%20exclusive%20clauses%20in%20the%20contract%20with%20private%20enterprises%2C%20it%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELi%20said%20such%20policy%20designs%20aim%20to%20create%20an%20environment%20for%20fair%20market%20competition.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EShi%20Wei%2C%20an%20expert%20with%20the%20Institute%20of%20Economic%20System%20and%20Management%20under%20China%27s%20top%20economic%20planner%2C%20said%20that%20private%20firms%20participating%20in%20the%20program%20must%20strive%20to%20make%20innovations%20in%20their%20services%2C%20or%20else%20they%20will%20become%20just%20agents%20for%20major%20carriers.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Private%20companies%20should%20develop%20more%20innovative%20applications%20and%20provide%20differentiated%20services%20to%20win%20their%20share%20of%20the%20market%2C%22%20Shi%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELi%20also%20said%20that%20private%20enterprises%20have%20ample%20room%20for%20innovations%20and%20can%20provide%20diversified%20services%20of%20their%20own.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Private%20enterprises%20in%20the%20reselling%20business%20and%20major%20mobile%20carriers%20are%20not%20only%20cooperation%20partners%20but%20also%20competitors%2C%22%20Li%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20pilot%20program%20is%20designed%20to%20last%20for%20two%20years.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EPrivate%20enterprises%20can%20send%20applications%20to%20telecom%20authorities%20within%20the%20first%20year%20of%20the%20program.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20has%20attached%20great%20significance%20to%20encouraging%20private%20investment%2C%20as%20it%20plays%20an%20important%20role%20in%20creating%20jobs%2C%20boosting%20domestic%20consumption%20and%20maintaining%20sustainable%20economi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