Telecom & Wireless

Power To The People: MII Bans Chinese Telecom Service Monopolization

China's Ministry of Information Industry has issued a circular to local government construction departments and planning departments, as well as the six main telecom operators, banning real estate developers, property managers and telecom operators from signing exclusive agreements for telecom services in residential areas.

This is yet another attempt that MII has made in solving "The Last Kilometer Problem" in China. Most often, real estate developers and property management departments will sign an exclusive agreement with a certain telecom operator in order to gain some dubious income from them. In so doing, they rob the residents' right of choosing telecom services on their own.

In its circular, MII asks that the cost of communication tubes construction be included into the general budget of the real estate project as part of the project's attached facilities. It also asks that each concerned department strengthen the management and supervision of the construction of those communications tubes in residential areas.

It is still unclear how MII will enforce this new edict, and whether greedy property developers will heed the Ministry's warning.

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