Regulating Telecom Price Hikes
October 31, 2002 | BY
clpstaff &clp articles &At the end of October 2002, media attention focused on the surprise announcement by China Telecom that it would be increasing its interconnection charges…
At the end of October 2002, media attention focused on the surprise announcement by China Telecom that it would be increasing its interconnection charges resulting in a possible fourfold increase in calls to the PRC. Interestingly, in the same month, regulations came into effect to strengthen the administrative control over the pricing of telecom services in China that have been designed to regulate such price hikes. The State Development Planning Commission (SDPC) and the Ministry of Information Industry (MII) issued the Procedures for Examination, Approval and Filing of Telecommunications Charges Provisions (Trial Implementation) (the Provisions), with effect from October 1 2002.
Three Types of Pricing
The 2000 PRC, Telecommunications Regulations (中华人民共和国电信条例) refer to three types of pricing for telecom charges: government-fixed prices, government-guided prices and market-regulated prices. All three types of pricing can be implemented for basic telecom service charges, while government-guided pricing or market-regulated pricing can be used for value-added telecom services.
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