Update of Telecommunications in China (by IGI , 06/23/99)
The major changes in the telecom market in China since last year include the following.
- the formation of a new cabinet favoring reform,
- the new ministry (Ministry of Information Industry) overseeing the sector,
- the separation of telecom regulator from operation,
- the separation of post from telecom,
- the increasing WTO pressure,
- the first official joint venture in telecom services with AT&T,
- the reiteration of existing ban on foreign participation in telecom services,
- the review of "China-China-foreign" financing structure,
- the renewed support for China Unicom and the opening of the field to new players.
In addition, many other major reorganizations are in the process.
- the breakup of China Telecom into four operating companies,
- the transfer of CDMA Great Wall Networks and Guoxin Paging Company to China Unicom,
- the granting of a CDMA license to China Unicom,
- the trial of IP telephony services by China Telecom, China Unicom and Ji Tong in over 20 major Chinese cities,
- the formation of a new telecom service provider formed by the Ministry of Railways, Chinese Academy of Sciences, the State Administration of Radio, Film and Television and Shanghai Municipal Government.