MIIT Details Policy on Private Sector Investment in Telecom
CCTIME, 6/27/12
China's Ministry of Industry and Information Technology (MIIT) recently issued the "Views on Measures to Encourage and Guide Further Investment of Private Capital in the Telecommunications Industry," in which it states that focuses of encouragement and guidance will include:
1) Encouraging the development of mobile telecommunications service resale trials with the goal of driving service improvement and lowering costs through competition.
2) Encouraging trials of network access services and customer premises network (CPN) services, with the goal of improving regulatory mechanisms and procedures, guaranteeing equal access for enterprises, and providing clients with greater freedom of choice.
3) Encouraging private capital in the areas of managed network services, with the goal of guiding telecommunications enterprises to entrust the management and upkeep of domestic networks and equipment owned or leased by the enterprises to third-party, privately operated enterprises.
4) Encouraging the development of telecommunications value-added services, and supporting the investment of private capital in the area of the internet in order to further clarify policies related to the development of IDC and ISP services with private capital.
5) Encouraging qualified privately owned enterprises to apply for enterprise certification in areas including telecommunications engineering project design, implementation, management, information network systems integration, user pipeline construction, and telecommunications development project bid brokering. Privately owned enterprises possessing qualifications in these areas will be permitted to take part in bidding for telecommunications development projects on an equal footing, with no further conditions.
6) Encouraging the participation of private capital in infrastructure equipment investment, construction, operations, and maintenance for areas including base stations and communications towers.
7) Encouraging the entry of private capital to the infrastructure telecommunications operator market through the purchase of equity, encouraging infrastructure telecommunications enterprises to list domestically, attracting private investment by reducing the proportion of state-owned shares or capital and share increases for listed companies, and supporting infrastructure telecommunications enterprises in attracting private strategic investors.
8) Supporting the international expansion of privately operated telecommunications companies in order to develop the international market.
Keywords: regulation overseas policy telecom MIIT private investment managed network services network construction mobile network equipment telecom engineering system integration
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