Considering the ways to restructure an uneven telecom market in China, the telecom regulators have planned to step up granting new wireless licenses to fixed-line operators.

According to the Vice Minister of Information Industry, Xi Guohua, the declaration by the China’s supervisory body to permit the fixed-line operators to enter the rapidly growing cell phone market can increase the heat up the competitive scenario of the telecom industry, reported TheAssociatedPress .

The telecom regulators in China intend to speed up awarding new 3G wireless licenses to the fixed-line operators to support them in competing with the mobile operators of the country, besides assisting them in retaining the existing subscribers while acquiring new users from the mobile services, who have been attracted away by the rapid growth of mobile services.

At the end of September 2007, as per the official data, total mobile phone subscribers in China stood at 523.3 Million, up by 13.5% from 2006 end, while the total fixed-line subscribers in China were merely 371.7 Million, an increase of 1.1% from late 2006.

The termination of charges for receiving calls through mobile phones since the commencement of 2007 has worsened the matter for the fixed-line phones to contend with more developed mobile technologies.

By now, the government of China anticipates the total mobile subscriber base to increase to 540 Million by 2007 end. Consequently, the Chinese regulator have taken this daring step intending to restructure the fragmented telecom market where mobile is highly exciting and fixed-line is sluggish.

Moreover, the industry restructuring would happen at a time when the market is gearing for the advent of 3G mobile telephony, taking over the present leader 2G. 3G permits numerous superior functions together with the operation of broadband wireless data through mobile phones. The improving living standard of the Chinese people will undoubtedly support the imminent technologies of the mobile space.

A Senior Research Analyst at RNCOS says “The Chinese telecom industry is mainly driven by the mobile sector, but the involvement of fixed-line operators in the mobile industry will also give the necessary boost to the country’s communication service. The Chinese people will also stand to gain, as the increasing competition in the mobile industry will definitely lead to reduction in the cost of mobile handsets as well as the telecom services”. 

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