Telco giants China Telecom and China Unicom both released statements on 2 December, promising to make some improvements to their operations following an anti-monopoly probe.
In early November, a Chinese antitrust regulator started investigating the…
Telco giants China Telecom and China Unicom both released statements on 2 December, promising to make some improvements to their operations following an anti-monopoly probe.
In early November, a Chinese antitrust regulator started investigating the two state-owned telcos over alleged monopolistic practices in the broadband access business.
Li Quing, deputy head of the National Development and Reform Commission’s (NDRC) price supervision and anti-monopoly department, was quoted saying that China Telecom and China Unicom together control 90% of the country’s broadband market.
Li reportedly added that the two companies may have been using their dominant position to charge competitors higher interconnection fees, while failing to improve network connections.
In a statement today, Unicom said: “The company will earnestly implement the enhancement initiatives, improve the pricing management in connection with the internet dedicated leased line access service and actively cooperate with other backbone network operators to improve the quality of the internet interconnection.”
In a very similar press release, China Telecom noted: “In order to further enhance the quality of interconnection and achieve full optimum in interconnection, the company will promptly carry out capacity expansion with other backbone network operators like China Unicom and China Tietong and reduce the price for direct interconnection with China Tietong.”
Both companies have also said they sent applications to the NDRC to suspend the investigation.