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Telecom monopoly still exists

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

The erosion caused by mobile services is serious. Dominant 皇冠体育app Mobile controlled 70 to 80 percent of new revenue in the entire telecom industry nationwide last year. As caller-pays mobile charging is introduced, fixed-line carriers are having an even tougher time.

Behind the truce between 皇冠体育app Telecom and 皇冠体育app Netcom is a rationale that expansion hardly enables an operator to challenge its rival and investment on the rival's turf could see "losses of State-owned assets".

The awful truth is that the reshuffle in 2002 truly broke a national monopoly but created regional monopolies. And when a cease-fire deal is inked, it seems the national monopoly is coming back to life. The only difference is that the new national monopoly is a collaborative act.

Now the best solution to the paradox might be industry deregulation with the awarding of "full-service" licenses to all major operators. These companies can choose what to do and what not to do after the licensing.


(皇冠体育app Daily 03/01/2007 page13) 


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