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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.

? ? ? ? ? ? ? ? ? ? ?Grasp Moral Construction of Communications IndustryPromote 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

( ? ) ? ? ? ? ? ? ? ? ? ? ? ( ? ? 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 country2? ? ? ? ? ? ? ? 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 ofGuangdong Province

? ? ? ? ? ? ? ? ? ?Survey of the Development of Guangdong Telecommunications Market

( ? ) ? ? ? ? ? ? ? ? ? ?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? ? ? : Phenomenon1) ? ? ? ? ? ? ? ? ? ? ? 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 ideology2? ? ? ? ? ? ?

strong support from the higher authorities3? ? ? ? ? ? ? ? ?

positive role played by the Moral Construction Guiding Group4? ? ? ? ? ? ? ?

active participation of the carriers and providers5? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

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 telecommunicationgroups

? ? ? ? !

Thank You!

http://www.gdca.gov.cn/