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News from NET and COM '99

  • China Telecom to Undergo Restructuring
  • February 9, 1999 (BEIJING) -- China's major telecommunications company, China Telecom, is about to undergo substantial reforms, according to a recent report from Shanghai Securities News.
    The plan to restructure the gigantic company into four independent sectors -- conventional telephone, mobile communications, satellite data transmission and paging -- is about to get the go-ahead from policy makers.

    The cable network, telecommunications network and computer network are expected to be integrated sooner or later as the telecommunications sector opens up.

    If this happens, analysts said, it will mean that China has entered the digital world.

    Telecommunications is the fastest growing sector worldwide, and China's telecommunications industry grew 36.1 percent in 1998.

    However, the long-time monopoly has resulted in inefficiency and high costs in the sector, which has proven to be unfavorable to its long-term development.

    In Beijing alone, telephone installation fees once hit a record high of RMB7,000 to RMB8,000 (US$843 to US$964), and the average per-minute cost of a long distance international call was about RMB29, six times the cost in the United States.

    (Xinhua News Agency)

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    Updated: Mon Feb 8 20:36:44 1999 PDT