               Global Business               
References                  Environment                       Case
 Telecommunication 
Networking

July 21, 1994

Telecom Rivalry in China

China formed a company to provide telephone, computer and satellite services and authorized it to set up the country's second telecommunications network, ending a monopoly long held by the Posts and Telecommunications Ministry.

While rivalry from the new China United Telecommunications Corp., dubbed Unicom, will widen equipment sales opportunities for foreign firms, they still are barred from operating telecommunications networks in China. Unicom was created by the Electronics Industry, Power Industry and Railways ministries.

Eager to speed development of the sector through enhanced competition, officials said Unicom's first task will be to modernize and integrate communications networks of government ministries.

Moreover, as China now has only 2.15 phones for every 100 people, Unicom said it would expand installations, as well as seek to capture 10% of the long-distance and 30% of the mobile-phone markets.

               Global Business               
References                  Environment                       Case
 Telecommunication 
Networking