China Netcom is preparing to organize forces to help shut illegal phone kiosks in Beijing.
These phone kiosks provide very cheap long distance phone service for rates as low as CNY0.15/minute. The voice quality of the calls are usually fine, and most of these services are actually broadband-based VoIP through which the callers do not pay any monthly rental or network calling fees.
According to kiosk owners quoted in local media, after all Internet and acquisition costs are considered, they can earn up to CNY0.05 for each minute spent online.
Both China Netcom and China Unicom have denied they offer these types of phone kiosk services. China Netcom's Beijing branch says that the illegal kiosks have brought disorder to the market and they plan to find ways to soon close the illegal outlets.