Law & Policy, Telecom & Wireless

China's National Development And Reform Commission Urges End To Broadband Oligopoly

Recent machinations in China suggest the Chinese telecommunications companies may be near the end of monopolizing their sector.

Xu Kunlin, director of the bureau of price supervision and anti-monopoly at the National Development and Reform Commission, revealed to local media that the commission has been urging China Telecom and China Unicom to continue to rectify their monopolistic activities and end their oligopoly in the broadband sector within five years.

In 2011, National Development and Reform Commission announced an anti-monopoly investigation against China Telecom and China Unico, due to their suspected monopolistic behaviors in the Internet access market. After that, China Telecom and China Unicom both published announcements admitting that they have problems in price management and large pricing differences when providing access service to Internet service providers. Both companies promised to further lower their broadband fee levels.

Xu said that China Telecom and China Unicom have increased their broadband capacity from the formerly planned 10G to 100G. In the future, the commission will continue to urge the two companies to make additional rectifications and improvements over the coming five years.

Xu added that anti-monopoly investigation will not treat Chinese enterprises and foreign ones differently. As long as there are monopolistic behaviors, the commission will take actions in accordance to the law.

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