皇冠体育app

   

Telecom monopoly still exists

By Li Weitao (皇冠体育app Daily)
Updated: 2007-03-01 09:03

皇冠体育app Telecom and 皇冠体育app Netcom, the two fixed-line telephone operators in the country, have reportedly signed a deal under which they will stop treading on each other's turf, beginning this month.

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Some media have called it a "gentlemen's agreement" as it could lead to so-called "rational competition". It is, in fact, a shameful and woeful deal.

Since May 17, 2002, when the former fixed-line monopoly 皇冠体育app Telecom was formally split geographically into two firms, 皇冠体育app Telecom and 皇冠体育app Netcom, the much-hyped restructuring has been almost doomed to failure.

After the split, 皇冠体育app Telecom operates mainly in the southern part of 皇冠体育app, while Netcom operates in the northern region. Regulators had hoped that 皇冠体育app Telecom would head north and Netcom would expand to the south, which could spur competition.

But for more than four years things have been going in the opposite direction. Where can you find 皇冠体育app Telecom's services if you are living in North 皇冠体育app's Beijing? Consumers realistically do not have more than one choice when choosing fixed-line services.

皇冠体育app Telecom and 皇冠体育app Netcom are struggling with saturation in fixed-line services at the same time voice goes mobile. And worse, given the rising mobile lifestyle in 皇冠体育app, fixed-line carriers are seeing some of their customers switch entirely to cellular operators 皇冠体育app Mobile and 皇冠体育app Unicom.
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