Posted: January 27th, 2012 | No Comments »
Here we go again with Chinese telecommunication standards and regulatory procedures.
According to Caixin the very much expected roll-out of 4G networks may run into delays. Results of network testing conducted by China Mobile are being withheld and, instead of the usual group approach, the Chinese carrier appears to be holding one-on-one discussion with network equipment vendors.
The process is somehow reminding us of the 3G saga in which operating licenses were given out once domestic firms had managed to offer a working standard that could match the established European and American standard.
Being a state-owned carrier may not always secure a competitive advantage, in particular when the regulator interferes with the market.
Posted: January 6th, 2012 | No Comments »
China Telecom, the largest fixed-line provider in China, is going mobile in the UK…
Neither the mode of entry via a mobile virtual network operator (MVNO) nor the segment targeted (Chinese tourists) may sound very threatening to established mobile operators like Vodafone or O2. While such a low-key market entry carries little downside risks, it also provides little upside benefits. Nevertheless, it sends a mighty signal to carriers across the world that Chinese operators are no longer only concerned about their domestic market.
In spite of China’s accession to the WTO a decade ago and the ensuing ”liberalization” of the telecommunication market no foreign operator has really ever managed to crack the Chinese market. Competition may now take place elsewhere and, given the deep pockets of Chinese operators, it may be fierce.
Posted: October 14th, 2011 | 1 Comment »
The information has yet to be officially confirmed but it appears that China Telecom may be under anti-monopoly investigation.
Its sin(s)? Abuse of dominance in the broadband market or more specifically charging other broadband service operators discriminatory network access fees. For those not versed in competition law jargon it means that the company is taking advantage of its position in the market to squeeze out competitors (usually by forcing them to resell services to the final customer under the cost of production).
The anti-monopoly law is one of the latest weapon in the arsenal of those trying to instill fair competition in the Chinese telecommunication market. The real question is why China Telecom’s counterpart (China Unicom) does not incur a similar investigation, given that both companies have nicely divided the country in two – the South for China Telecom and the North for China Unicom?
