NDRC requests more detailed reform plans

13 Dec 2011

China’s National Development and Reform Commission (NDRC) has reportedly told China Telecom Corporation and China Unicom to submit more specific plans for reform, saying that those received so far were too vague. The two telecoms giants are currently being investigated for practicing price discrimination and other anti-competitive measures. Alongside requests to suspend the probe early, both companies promised to fully interconnect with rival networks, increase transmission speeds and reduce costs to the public over the next five years. According to Dow Jones Newswires, which cited Chinese business journal Economic Information Daily, the NDRC was not satisfied with the plans outlined by Unicom and Telecom as neither company included timetables for enacting the reforms, nor did they specify how they intended to achieve the goal of lowering user fee standards. If the commission confirms that Unicom and Telecom have been abusing their market dominance, each could face fines of 1%-10% of their annual operating revenue.