China’s Information Industry said that the country is required to make some improvements in its telecommunication industry by bringing in more competition to weaken the heavy weight operators’ monopoly.

China’s Information Industry said that the country is required to make some improvements in its telecommunication industry by bringing in more competition to weaken the heavy weight operators’ monopoly.

Lou Qinjian, the Deputy Minister of Information Industry, said that in order to break the big operators’ monopoly, China should develop its telecom industry by intensifying the competition, according to the news published by Englishpeople on October 19, 2007.

The mobile industry of China is driving the growth of the country’s telecom sector. From January-August this year, the average monthly rise in the number of mobile phone users increased over 10 times to that in landline users and reached an estimated 6.82 Million. The SMSs sent by the people in China exceeded 378.5 Billion in January-August 2007, 38.3% up from the same period in 2006, as reported by CCTV.

China’s broadband industry too is showing growth and is contributing to the growth of its telecom industry. As per China's MII (Ministry of Information Industry), by the month of September (2007), the total number of Internet users were 172 Million in China, whereas it was 162 Million during the initial six months of 2007. The Pacificepoch published this news.

The country’s new tech-savvy generation has pushed the growth of its telecom sector. This young generation demand for high-speed broadband service on their cell-phones and PCs. The number of new devices that is being introduced in the country’s market also attracts these people. Also, the rural population has become more educated than they were before. In addition to that, the consumer spending has increased due to the booming Chinese economy.

The new plans and policies implemented by the Chinese government, like the distribution of 3G licenses to many foreign telecom enterprises, are also luring the foreign investors. The government has also cancelled more than 180 administrative exams as well as approval systems regarding the cell phone communication terminals and systems.

A Senior Research Analyst at RNCOS revealed, “The telecom industry in China is going great guns. But this growth has also brought in new challenges for the industry, particularly for the operators who are facing pressure due to stiff competition. So to increase their profits, some value-added services will be required to introduce. Therefore, the government should take some important steps to handle this impending problem”.