New law may result in up to 60 million pre-pay disconnections

12 Dec 2005

China’s telecoms regulator the Ministry of Information Industry (MII) is planning to introduce new rules from June 2006 that will require all pre-paid mobile phone users to register their handsets or risk having them disconnected. China has around 200 million pay-as-you-go users out of a total of 380 million subscribers and local press reports suggest that as many as 60 million people could fail to comply with the new rules, threatening a profound negative impact on the revenues of the two official mobile network operators China Mobile and China Unicom. The new legislation is expected to be confirmed by the end of this year, with the registration deadline slated for June 2006.

China, China Mobile, China Unicom