Strive to seek the way of regulating the communication market in
the epoch of transformation
Director of Guangdong Provincial Communication Administration
Chen Xuedao
After a new round of restructuring China telecommunication industry, the remarkable
changes have taken place in communication market layout. This indicates the new age
with more dramatic competition in telecommunication industry is coming.
Telecommunication industry and social circles are increasingly concerned about the
government implementation of fair and effective regulation and supervision in the industry
so as to promote the sustainable development of the whole telecommunication industry.
Here I would like to discuss some problems of telecommunication industry regulation
together with you, based upon the actual circumstance in Guangdong province.
I. Telecommunications development and market environment of Guangdong
1. Rapid development of telecommunications has been fully recognized by the
Guangdong’ government and people. Since reform and opening-up, the level of
Guangdong telecommunication development has been at the top in the country. At the
first half year, Guangdong telecommunication services revenue accounts for almost 18%
of total telecommunication service revenue of China, its telephone subscribers account for
13% and Internet subscribers account for 18%. The total volume of the provincial
telecommunication industry services makes up 1/10 of the provincial GPD. The provincial
government leaders have praised Guangdong telecommunication industry’s outstanding
contribution to the provincial economic development.
2. More telecommunication market competition with increasingly fierce trend. As a very
important communication market, Guangdong is undoubtedly charmed by all the
telecommunication operators, and also firstly chosen by foreign operators. At present,
domestic 6 big operators have rolled out their telecommunication services in Guangdong
province with 600 ISPs and ICPs as well as over 200 value-added service operators, thus
jointly forming diversified competition pattern in Guangdong telecommunication market.
Due to early opening-up and developed economy, telecommunication market competition
of Guangdong is more adequate and tends to be increasingly acute.
II. Our Administration Bureau proposed a train of new thoughts for regulation that
includes the regulation of “rule by moral” and “rule by law”, improved work style and
administration by law. We adopted the effective measures to enhance regulation work.
By doing so, some effect has been produced.
Facing enormous Guangdong telecommunication market and the complicated
competition situation, Guangdong Communication Administration dares to carry out
practices and innovation and adopts various regulatory measures so as to ensure the
smooth development of Guangdong telecommunication market in an orderly way. Since
its founding in 2000, our Administration has successfully completed functional transition
from a governmental/enterprise combined organization to an independent regulatory
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organization. In the course of exercising communication market regulatory function, we
have defined the working guidelines and follow the basic principle of administration by law
and create “just, uncorrupted and efficient” government image. We emphasize the
working methods of “service, coordination and regulation” and adopt both ways of “rule by
moral” and “rule by law” to push forward the entire regulation work in accordance with
actual conditions of Guangdong telecommunication market.
Ideologically, our Administration has guided regulation work, analyzed the problems,
solved the problems, and enhanced coordination, normalization and regulation of the
market, thoroughly based upon “Three Represents” thought. We try our best to find the
way of telecommunication regulation through practices and thinking in this epoch of
transformation.
1. Lead the enterprises to correctly understand significance of competition by means of
“rule by moral” and launch the activity of “normalized operational behavior and
establishing new style of work” to promote the regulation work.
In accordance with “Three Represents” requirement, our Administration always put the
establishment of spiritual civilization and industrial style of work in the outstanding position.
Under the circumstance where enterprises breach of rules with drastic “price war” and set
purposely imposed obstacles for interconnection and interwork, the Telecommunication
Administration Bureau sensitively becomes aware that these problems have become new
unhealthy tendency of telecommunication industry, and are different from those shown in
“window” services. Such unhealthy tendency has more concealment and destructiveness.
If let it stretch, it will erode the body of enterprise and weaken their vitality and destroy the
game rules and occupational morals, thus entailing untold troubles upon the whole
industry.
In order to further normalize market order, guide the healthy and orderly development of
this industry and solve the deep-seated problem concerning work style revealed initially in
this industry, based upon survey & investigation and the opinions obtained from various
units, our Administration makes full use of the favorable conditions, i.e. the guidance
group of Guangdong provincial communication industry’s spiritual civilization
enhancement and work style enhancement set in our Administration, and decides to
promote regulation work via the enhancement of style of work and integrate the
government regulation, enterprise self-discipline and social supervision closely. During
April to June this year, a 3-month activity of “normalized operational behavior, create
industrial new style of work” has been launched in the telecommunication sectors of the
whole province. The new work style of “normalized operation, orderly competition, honest
service and joint development” was proposed to guide rational competition among
enterprises and correctly handle the relationship between national interests, enterprise
interests and customer interests, and strives to understand and solve such problems just
like “treat a disease by looking into both its root cause and symptoms and take
simultaneous measures to correct the wrong and uphold the right.”
The focus of this activity is aimed to solve 3 major problems currently occurred in
Guangdong communication market:
The first problem is “connected but obstructed”, “get through but impeded” and
“unimpeded but only for short time”. The second problem is violation of state tariff
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standards and excessive “Price War” behavior. The third one is further improvement of
telecommunication service quality. This activity required all operators to change their
ideas and initiate normalization of their own operation behaviors and lay emphasis on
self-discipline. They should not only pick out others’ shortcoming but also should find out
their own shortcoming.
This activity has been fully supported by the leaders of the MII and provincial
government, and the leading comrades from above-mentioned leading bodies attended
the Mobilization Conference and made mobilization report and guidance lecture, and they
are concerned about this activity very much.
Through four stages of self-check & self-correction, propaganda & study,
cross-examination and comprehensive comparison & appraisal, this activity has yielded
remarkable results. The several check teams composed of provincial Industrial
Style-of-Work Guidance Group, Guangdong Provincial Communication Administration,
telecommunication operators, Provincial Communication Industry Association and
Provincial Telecommunication Consumers Commission, have traveled dozens of
thousands of kilometers through 21 prefecture-level cities for spot check on telephone
service quality with over ten thousand tests. They held symposiums at various levels, and
through open and secret visits, checked some 40 telecommunication business windows
and customer service centers as well as equipment rooms in many types of gateways and
tandem exchanges, thus gathering a lot of first-hand real data.
The integration of industrial style of work and administrative rule by law can promote the
regulation work along with concrete practice progress, and this is also an innovation in
regulation work as an attempt for the regulation work with China’s characteristics. This
activity has brought about a huge impact on telecommunication industry and Guangdong
social circles and a big shock to the telecommunication operators. In the course of this
activity, telecommunication operators took active part in and achieved better results and
the telecommunication enterprises disobeying rules have signed their correction
agreements and rectification & improvement guaranty etc. This activity has limited the
reduction of tariff standards without authorization and “price war” so that the connectivity
between telecommunication networks has been improved remarkably, the complaints
about telecom service come down and the Telecommunication Administration Bureau’s
prestige has gone up to some extent.
2. Adhere to ‘administration by law’ and take up legal weapons and raise the penalty
level and transform the regulation by power into the regulation by law.
The ultimate goal of telecommunication market regulation is to break down the
monopoly and promote competition and create healthy and orderly market environment so
as to facilitate better development of telecom industry and bring about real interests for
telecommunication subscribers.
The reality of communication market regulation lets us realize that it is necessary to
further update our ideas and broaden our train of thought in order to normalize
telecommunication market order and establish a fair competition environment. After
China’s accession to the WTO, its communication market regulation work must comply
with international practices and complete the transition from mainly based on “Red Official
Document” to based on laws. Regulation by law does not only mean handling affairs by
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law, but also mean well using law-entrusted rights to maximize the regulation effects.
Since the second half of last year, our Administration has enforced administrative law in
an enhanced way and dealt a severe penalty to the breach of rule acts, over 20
enterprises have received administrative punishment due to violation of law.
Our Administration strictly deals with each case according to legal procedures. We
follow the principle of fairness and justness, ensure sufficient evidence and select correct
and well-knit provisions. For 24 penalized cases, no administrative review or a lawsuit is
requested and all the fine have totally entered the state-appointed accounts.
The course of forcing the law is in no way plain sailing. Some operators may fail to
realize its own mistakes. For example, an operator is penalized due to its unjust
competition for launching “IP phone free of charge”, but it goes so far as to assert that its
price reduction and free of charge service are in line with General Secretary Jiang’s
“Three Represents” requirement and give up its profit to its subscribers, thus doing so
represents the benefit of masses of people. Our Administration has rendered a strong
refute to such an absurdity. One out of “Three Represents” means to represent the
fundamental interests of absolute majority of people. This is the starting point and lodging
point of all our work. In appearance, if the enterprise launched “price war” and reduction of
tariff breach of rule, some portion of subscribers can gain something, but this vicious
competition produced severe consequences – weakening enterprise’s competitive power
and degradation of service quality and even causing circuit blocked due to the problem of
interconnection, thus harming the interests of majority of subscribers and causing a loss to
the country. For this reason, we thought that so-called people’s interests from that
operator are only short-term interests of small portion and definitely are not the
fundamental interests of majority of the people. The interests of a part of subscribers and
the interests of broad masses of people are two different concepts. This operators’
absurdity is due to its misinterpretation of the “Three Represents”.
Our Administration carries out administrative functions by law and maintains the dignity
of state laws as well as state interests and fundamental interests of broad masses of
telecommunication subscribers.
3. Keep abreast of times marching paces and dare to make innovation in work and
improve regulation environment and promote the industry development. The current
communication regulation work in our country is different from that in the age of combined
governmental/ enterprises, and no experiences can be followed. This requires that we
should be good at practice and dare to explore and innovate something new.
Our Administration persists in handling regulatory affairs flexibly and daring to make
innovation in accordance with actual conditions. For instance, after commissioning
Guangdong subway, no signal could be received by handsets within subway for quite a
long period of time, because the subway corporation has laid its own leakage cables in its
tunnels. If mobile operators want to run telecommunication services within subway areas,
they must sign leasing or procurement agreements with the subway corporation. However,
such agreements are delayed or difficult to be signed due to the excessively high price put
forward by the subway corporation, thus having impacts on the telecommunication
services for broad masses of mobile subscribers within subway areas. We consider this
type of telecommunication operation activity run by the subway corporation involves the
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matter of operation license. With the support from the relevant sectors, our Administration
has issued the provisional license on leasing the cables laid within subway areas to
subway corporation so that this business is brought into the orbit of normal regulation, and
meanwhile, many unreasonable provisions under monopolistic operation in underground
railway areas have been revised via multi-party negotiation. We helped to bring about the
agreements between China Mobile & China Unicom and the subway corporation, thus the
communication problem in subway areas has totally been solved
After China’s accession to the WTO, the communication market regulation work should
also comply with international practices as soon as possible. According to international
practices, the government is responsible for macro-control of the industry, while the
association of the industry shoulders the task of many coordination and management. Our
Administration fully plays the role of intermediary institution and transfers a portion of
routine work and evidence collection work to the Provincial Communication Industry
Association. This industry association has issued nearly 5,000 terminal equipment
maintenance & sale permits and nearly 600 ISP and ICP operation licenses and nearly
1,000 Internet Cafe licenses as well as nearly 200 value-added service licenses. So far,
no complaints have been received. The practice demonstrates that the full use of
intermediary institution resources can not only save a lot of human resources, but also
fosters the roll-out of Communication Industry Association work.
The handset short message service is developing very fast, but there is no relevant law
& regulations. Our Administration submitted a report to the higher authorities to urge the
relevant regulation provisions to come into being as soon as possible. The higher
authorities attached importance to this report, and the corresponding deployment has
been arranged by the MII and provincial government. Guangdong provincial Committee of
Chinese Communist Party has convened several meetings for discussing how to block
harmful short messages. Our Administration and provincial Public Security Department
jointly published Opinions on coping with the harmful message (such as “lottery” game
etc.) in the telecommunication network. A series of measures has been taken to suppress
flooding of harmful short messages effectively.
Since early this year, our Administration and provincial Internet Association have jointly
organized 6 major basic telecommunication operators and more than 60 ICPs and ISPs in
the province to jointly sign Self-discipline Pact for China Internet Industry, thus
accelerating the normalization of provincial Internet industry and new self–discipline
progress for this industry. At the same time, our Administration has taken the initiative to
launch “Youth Healthy Access to Internet” project together with Provincial Education
Department and Provincial Communist Youth League Committee. Various mass media
within the province issued the reports concerning this project, thus rendering very good
social influence and receiving the welcome from the parents of youths and confirmation
from the local governments.
Our Administration has turned out many eases concerning reform and innovation, for
example, we set up a “brain-trust” composed of over 200 experts in the fields of
interconnection, network planning, network construction and service quality etc. They are
engaged in examination, arbitration, regulation and appraisal work. We employ news
media to create public opinion environment for market regulation and supervision, and let
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Telecommunication Consumers Committee organize its activities. We also cooperate with
the relevant units in provincial governments e.g. provincial Planning Commission and
Public Security Department to let them play their role in pushing forward telecom market
regulation & supervision work.
III. Some problems existed in current Guangdong telecommunication market and their
causes. Currently some rather big problems still exist in Guangdong Telecommunication
market due to acute competition.
The first problem is the blocked and impeded interconnection. There is the
phenomenon of “connection but obstruction”, “put through but with impediment” and
“smooth but just for short time”. Interconnection agreement has been signed and also
implemented, but afterwards the above-mentioned “troubles” have happened frequently.
Interconnection is no trouble during overt investigation and has troubles during secret
visits. Such troubles are probably man-made. Some enterprises’ software sets the limit of
traffic, The others may change their network configuration to cause the very poor trunks
configuration for interconnection between enterprises and within enterprises.
Interconnection and interwork are the prerequisite necessary for telecom competition. If
no proper arrangement for interconnection exists, the fair and effective competition order
may not be established. There are 4 major causes for the problems concerning
interconnection and interwork: 1. The company leaders lack the idea of legal system and
fail to have correct knowledge of the relationship between cooperation and competition; 2.
Abnormal operation behaviors lead to upgrade of interconnection contradiction; 3. The
existing interconnection accounting method, is somewhat unreasonable; 4. The
government lacks effective means for regulation.
The second problem is vicious competition. Some telecom operators’ prefecture-level
city branches take the price reduction as the only means for competition. They change
state tariff standards without authorization and launch “price war” with the trend of
becoming more drastic. There are 3 reasons: Firstly, the operators have indifferent legal
system ideas and regard the development as superior to law & regulations, and they
regard their breach of rules as nothing serious; secondly, they use technical means to
restrict call through-connection rate for their competitors; thirdly, because they are
state-owned enterprises, their assessment for their subordinate enterprises show the
emphasis on growth of subscribers rather than economic effectiveness, profit or loss etc.
In such cases, for some enterprises reduction of the prices is their only way to expand
market shares. They take no account of cost.
The third problem is the degradation of QoS. Under the circumstances of excessive
competition and prominent interconnection problems, the completion rate of
interconnection declines obviously and QoS can not be guaranteed, and often becomes
the victim.
IV, Some ideas on future regulation work.
The history of telecom regulatory institutions is not long. Compared with the past, we
are now confronted with the entirely different and complicated market situation. Newly
emerging problems and the status of legislation in telecom industry mismatched with
telecom development. Therefore we really feel huge pressure and difficulties in our
regulation work. As provincial executive body for telecom regulatory policies, Provincial
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Communication Administration yearns for Telecomm Act coming into being which is in
compliance with WTO rules and renders strong support to telecom regulation work, and is
also looking forward to further clear and distinct state regulatory policies. But the
realization of this desire needs a period of time. We recognize that the complaints and
waiting are helpless to the transformation of objective reality. The best way to find the
solution for these problems under existing environment and conditions is to have our
confidence. Our Administration calls on the staffs to study the “Three Represents”
important thought and telecommunication regulatory laws & regulations conscientiously.
We should be bold to innovate regulation methods and continuously broaden our train of
thought. Under current conditions, our Administration needs to face new situation and
study new questions and raise new proposals and adopt new countermeasures, and
accomplish the effective innovation in the regulation of telecommunication industry. Also,
our Administration provides the decision basis for sate policy-making bodies through our
own practices and exploration.
Many domestic and foreign experts and scholars and government officials are coming
to this meeting. They have done a depth study on regulation of the telecommunications
market and their experiences can be shared and for reference. I only express my views on
Guangdong Communication Administration’s regulation work in the future from the
operability of implementation.
1. Improve the existing legal system environment by promoting local
telecommunication legislation
The prerequisite for regulatory institutions to exercise administration by law is to have a
powerful legal weapon. There are many shortcomings in our current regulation work.
There are also more or less problems such as lack of normalization, no clear and distinct
normalization and lack of operability. This is one of main factors causing some regulatory
issues hard to be solved at present. Through local telecommunication legislation, we can
supplement and detail the operable provisions of the regulation and offsets to some
shortcomings existed in current law & regulations so as to improve existing legal system
environment, based on the principle of Telecommunication Regulations and local actual
conditions.
At present, Guangdong Communication Administration is urging Guangdong
Telecommunication Regulation Provisions into local law & regulations revision plan for
implementation. In the course of revising the regulations, our Administration has make a
great break through in the provisions of market access, interconnection and
telecommunication infrastructure construction based on the actual conditions of
Guangdong telecommunication market, for the purpose of meeting the needs of
Guangdong telecommunication market regulation after China’s accession to the WTO.
At the same time, we are speeding up the formulation of these documents such as
Details of Guangdong Provincial Interconnection & Interwork Regulation and Details of
Guangdong Provincial Telecommunication Price Regulation.
2. Tackle the problems of interconnection and interwork in a comprehensive way
Interconnection and interwork problems are becoming the supreme telecommunication
regulation matter in today’s China. Such problems are commonly acknowledged to be a
hard nut to crack, a “hard bone” to gnaw. The difficult points lie in: the interests of all the
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parties are hard to balance, there exist countless “black holes” technically and it is hard to
have sufficient and effective means of regulation. For interconnection and interwork, the
former regulation methods are often bogged down into a bewildering circle, i.e. the
regulatory institution is led by the interconnection provider to go around on the technical
details. It is very difficult to present legal evidences in the matters concerning
interconnection and interwork due to the nature of networks, thus leading to untimely
dealing with some obvious behaviors of violation.
Since the inducement for the interconnection and interwork problem is relatively
complex, it is very difficult to solve this problem via a single channel under current
conditions. We may try to break through old way of thinking and bypass the complicated
technical problems, and use comprehensive management mode to realize smooth
interconnection and interwork. This mode can be called as regulation incentive. For
example, if interconnection and interwork problems occur, once the party with
responsibility is determined through expert proof, then it will be restricted in the aspects
such as assignment of number resources and launching of new services in the future.
Instead, if the operator renders its coordination actively, then it can enjoy preferential
treatment in the above-mentioned aspects. Our Administration calls on the operating
enterprises to take part in public appraisal and vote of the titles of “advanced”, “excellent”
and “spiritual civilization” at various levels. When assessing the performance of leading
bodies of province-level telecommunication enterprises, the opinions from communication
regulatory institution should be asked by the group corporations or sponsor units in
combination with the judgment for enterprise operations whether breach of rule. On the
other hand, Our Administration takes initiatives to acquire evidences and give firm
punishment to the party who uses technical means to restrict counterpart’s
communication and obstruct interconnection and interwork. We follow the guidance of
“Administer the country by law” and “Administer the country by moral” put forward by
General Secretary Jiang and closely combine execution, administration and work-style
establishment, and solve the question about how to correctly understand regulation
through ideological education. This is not only in conformity with China’s actual conditions
but also a breakthrough in communication market regulation. We perhaps can find the
breakthrough point for solving this problem. Of course, above-mentioned contents are
only one kind of train of thought which still needs further proof for the feasibility.
3. Enhance exchange and study to offer sufficient macro-policy guidance fore the
development of the industry.
Limited by current objective conditions of regulatory institutions in every places, the
regulation work we have done is far too little. Price war and exclusive & vicious
competition are shortsighted demonstration of enterprises. Of course, the government
also has the responsibility of misguiding. China’s telecommunication enterprises will
experience a turbulent and high risky competition age, meanwhile they must cultivate and
master the latest technologies and capability and seize every opportunity to innovate new
services and products so as to keep their competitive power. The government should
provide the development guidance for telecommunication enterprises from macro policy
standing points, and help the enterprises to seek correct development orientation and
promote the benign development of telecom industry.
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Since the beginning of this year, our Administration with various associations has
organized lectures and policy seminars for many times to study and analyze state policies
and the problems existed in the course of enterprise development, and to explore new
technologies and industrial development orientation.
The regulatory institution and regulated objects are opposite but need to support each
other. The long-term harmonious development of telecommunication market can only be
realized through rational coordination between regulation and competition. No matter the
form of regulation system, the regulatory institutions should be powerful, and their
regulation targets and regulation means should be definite. The implementation process
must be highly transparent and capable to balance the interests of all parties with rights
and interests, including the investors for capital market. It is necessary to revise some
unreasonable settlement account part in the interconnection document as soon as
possible and to raise reasonable opinions on revision of assessment indicators for group
corporation or its subordinates.
As the specific executor of state telecommunication regulation, we shoulder the heavy
responsibility assigned by the country. We will adhere to “Three Represents” requirement
and closely rely on our superior lead bodies, local Communist Party Committees and local
governments, and always uphold unity and stability from global viewpoint and put the
establishment of civilizations and work style in an important position in our future work. We
will combine ideological education, work-style establishment and civilization construction
with administrative punishment and actively explore the right way of communication
regulation in this changing age, and strive to create a new situation for telecommunication
market regulation and supervision with Chinese characteristics.
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? ? ? ? ? ? ? ? ? ? ?
Grasp Moral Construction of Communications Industry
Promote the Supervision of Communications Market
( ? ? ? ? « ? ? ? ? ? ? , ? ? ? ? ? ? » ? ? , ? ? ?
? ? ? ? ? ? ? ? ? ? )
Guangdong launches the activities for standardizing market behaviors and
establishing new morals of communications industry, aiming at seeking a new
way of communications market supervision
? ? ? ? ? ? ? ?
? ? ?
GuangDong Communications Administration
Chen Xuedao
August 5, 2002
? ? ? ? ? ? ? ? ? ?
Survey of the Development of Guangdong Telecommunications Market
( ? ) ? ? ? ? ? ? ? ? ? ? ? ( ? ? 2002.06)
The Proportion of Guangdong Telecommunications in the National
Telecommunications As A Whole (up to the end of June 2002)
1? ? ? ? ? ? ? ? 18.3%
Telecommunications business income covers 18.3% of the total
income of the whole country
2? ? ? ? ? ? ? ? 13%
? ? : ? ? ? ? ? ? ? ? ? 9.4% , ? ? ? ? ? ? ? ? ? 16.3%
Telephone subscribers covers 13% of the total number of the whole
country, and 9.4% of them are fixed telephone subscribers,
16.3% are mobile subscribers.
3? ? ? ? ? ? ? ? ? 18.5%
Internet subscribers in Guangdong covers 18.5% of the
total number of the whole country
4? ? ? ? ? ? ? ? ? ? ? ? GDP10%
Communications business income covers 10% of the GDP of
Guangdong Province
( ? ) ? ? ? ? ? ? ? ? ? ?
Competition in Telecommunications Market in Guangdong is Relatively Full
1? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
Six basic telecommunication carriers all regard Guangdong as one of
their key business areas
2? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
varieties of new services and new technologies are often experimented and applied
to use firstly in Guangdong
3? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
The business of value-added telecommunication service providers
in Guangdong province is very brisk
1) ISP200? ?
more than 200 ISPs
2) ICP? 400?
about 400 ICPs
3) ? ? ? ? ? ? ? ? 100? ?
call centres and IVRs(Interactive Voice Response)
altogether over 100
4) ? ? ? ? ? 28?
28 CPNs(Customer Premise Network)
5) ? ? ? ? ? ? ? ? ? ? 200? ?
over 200 other kinds of value-added
telecommunication service providers
? ? 2002? ? ? ? ? ? ? ?
? ? ? ? ? ? ? ? ? ? ?
New Challenges GDCA Encountered During the Passed Half Year
( ? ) ? ? ? ? “? ? ? ? , ? ? ? ? ”
Impeded Interconnection
1? ? ? : Phenomenon
1) ? ? ? ? ? ? ? ? ? ? ? IP? ? ? ? ? ? ?
The call completion rate of long-distance and IP phone of Non-dominant
telecommunication service providers declined
2) ? ? ? ? ?
The interconnection unimpeded one moment, impeded the next
3) ? ? ? ? ? ?
Mediation work is very difficult to GDCA
2? ? ?
Reasons
1) ? ? ? ? ? ?
weak sense of abiding by the law
2) “? ? ? ”? ? ? ? ? ?
escalating contradiction caused by “price fighting”
3) ? ? ? ? ? ? ? , ? ? ? ?
unreasonable interconnection account settling method
3? ? ? ? ?
supervision measures
1) ? ? ? ?
unimpeded interconnection project
2) ? ? ? ? ? ? ? ?
strengthen supervision and pay more attention to the
positive effect of administrative penalty
3) ? ? “? ? ? ? ? ? , ? ? ? ? ? ? ”? ?
launches the activities for standardizing management action and
establishing new morals of communications industry
( ? ) ? ? ? ? ? ? ? ? ? ? ?
Violation of Price Policies and Malicious Competition
1? ? ?
Phenomenon
1) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
low price dumping, irrational scramble for subscribers,
malicious competition----market in disorder
2) ? ? ? ? ? ?
many kinds of illegal telecommunication service sets
3) ? ? ? ?
many kinds of illegal free of charge services
2? ? ?
Reasons
1) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
A small number of entrepreneurs deviates from the right
understanding of market competition
2) ? ? ? ? ? ? ?
The assessment system is unscientific
3) ? ? ? ? ?
The managers’ quality is unsatisfactory
3? ? ? ? ?
supervision measures
1) ? ? ? ? ? ? ? ? ? ? ?
propagate state’s price regulation policies
2) ? ? ? ? ? ?
strengthen supervision
3) ? ? “? ? ? ? ? ? , ? ? ? ? ? ? ”? ?
launches the activities for standardizing market behaviors
and establishing new morals of communications industry
?
?
? ? “? ? ? ? ? ?
,
? ? ? ? ? ? ”? ?
Launches the Activities for Standardizing Market Behaviors and
Establishing New Morals of Communications Industry
( ? ) ? ? ? ? ? ? ? ? ? ?
Why We Promote Market Supervision Through Establishing
New Morals of Communications Industry?
1? ? ? ? ? ? ? ? ? ? ? ?
reality of Chinese market economy
2? ? ? ? ? ? ? ?
market supervision work should be creative
( ? ) ? ? ? ? ? ? ? ?
Goal of Our Market Supervision
“? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ”
The goal of our market supervision is to standardize providers’ management,
maintain the competitive order, and achieve the ideal state that all providers follow the
good faith doctrine and develop side by side.
1? ? ? ? ? ? ? ? ? “? ? ? ? ? ? ? ? ? ”
raise call completion rate and solve the problem of impeded interconnection
2? ? ? ? “? ? ? ”
stop ‘price fighting’
3? ? ? ? ? ? ?
improve service quality
( ? ) ?
?
Concrete Measures
1? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
give full play to Moral Construction Guiding Group
2? ? ? ? ? ? ? , ? ? ? ? “? ? ? ? ”
stress ideological education, and always adhere to “Three
Represents”
3? ? ? ? ? ? ? ? ? ? ( 2002? 4-6? )
the activity lasted four phases and three months (from April
2002 to June 2002)
1) ? ? ? ?
mobilization phase
2) ? ? ? ?
self-criticism and self-discipline phase
3) ? ? ? ?
cross inspection phase
4) ? ? ? ?
summing-up phase
4? ? ?
achievements
1) ? ? ? ? ? ? ( ? ? 10-20? ? ? ? )
call completion rate increased (10-20 percentage
on average)
2)
“? ? ? ”? ? ? ?
“price fighting” subsided
5? ? ? ? ? : ? ? ? ? ? ? ?
ideological achievements:
1) ? ? ? ? ? ? ?
legal consciousness enhanced
2) ? ? ? ? ? ? ?
cooperative consciousness stressed
3) ? ? ? ? ? ? ?
service concept emphasized
4) ? ? ? ? ? ? ?
self-discipline consciousness strengthened
( ? ) ? ? ? ? ? ? ? ?
Why We Achieve So Much in This Activity?
1? ? ? ? ? ? ?
right guiding ideology
2? ? ? ? ? ? ?
strong support from the higher authorities
3? ? ? ? ? ? ? ? ?
positive role played by the Moral Construction Guiding Group
4? ? ? ? ? ? ? ?
active participation of the carriers and providers
5? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
giving full play to Communications Industry Associations and
Telecommunication Subscribers Committee
6? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
firm determination, overwhelming momentum, powerful strength,
and broad scale
? ? ? ? ? ? ? ? ? ? ? ?
? ? ? ? ? ? ? ?
Existing Challenges
( ? ) ? ? ? ? ? ? ? ? ? ? ? ? ? , ? ? ? ? ? ? ? ? ?
short-term behaviors of some providers
(due to unscientific assessment system)
( ? ) ? ? ? ? ? ? ? ? , ? ? ? ? ? ? ? ?
unscientific management within some providers
( ? ) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
problems still remains in interconnection and price
regulation
( ? ) ? ? ? ? , ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
difficulties in administering according to law
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
Opinions About Telecommunications Market
Supervision
( ? ) ? ? « ? ? ? » ? ? ? ?
appeal for the issue of “Telecommunication Act”
( ? ) ? ? ? ? ? ? ? ? ?
strengthen the construction of supervision staff
( ? ) ? ? ? ? ? ? ? ? ? ? ? ? ? ?
formulate local regulations and normative documents
( ? ) ? ? ? ? ? ? ? ? ?
bring interconnection under control in a comprehensive way
( ? ) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
establish Telecommunication Price and Interconnection Quality
Supervision Group
( ? ) ? ? ? ? ? ? ? ? ? ? ? ? ?
establish authoritative assessment system
( ? ) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
giving full play to Communications Industry Association and
Telecommunication Subscribers Committee
( ? ) ? ? ? ? ? ? ? ? ? ? ?
establish specialist data base for telecommunication market
supervision
( ? ) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
suggest that MII modify the unreasonable interconnection
account settling method
( ? ) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
suggest that MII strengthen the supervision of telecommunication
groups
? ? ? ? !
Thank You!
http://www.gdca.gov.cn/