Thursday, June 28, 2012

China Daily: China to open telecom sector to private capital

China's Ministry of Industry Information Technology has decided to allow and encourage private capital to enter the telecommunications sector. Specifically, private investment will be allowed in the resale of mobile communications , broadband services, value-added telecom services and basic operating services, according to a report from China Daily and a press statement from the Ministry of Industry and Information Technology. In addition, telecom operators may proceed with IPOs on domestic exchanges and the state will dilute its stake in major players. The Ministry will also encourage private investment in telecom infrastructure construction and maintenance projects, including holding the operating rights of base stations and telecom towers. China Daily explains the decision as a bid to boost the slowing economy.