China Law & Practice

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Communicating changes

China has recently taken several significant steps to speed up the development of a more uniform and modern regulatory framework for its telecoms industry. By Damien Bailey, Simmons & Simmons.

Issue: May 2009

Keywords (click to search): telecommunications telecoms regulatory licensing business permit China Mobile China Unicom China Telecom

[Click here for full translation.]

In May 2008, one of the largest industrial re-organisations in the telecoms industry saw China’s telecommunications operators reduced from six to three – China Mobile, China Telecom and China Unicom, spanning mobile, fixed and broadband services, respectively. The re-organisation was the fourth since China opened its telecoms industry to domestic competition.

A few months later, in September, the State Council issued revised regulations on foreign-invested telecommunications enterprises (its Provisions for the Administration of Foreign-invested Telecommunications Enterprises (Revised)/国务院外商投资电信企业管理规定 (修订)). The regulations update legislation brought into force in 2002 and have been introduced to provide incentives for foreign investment.

At the start of 2009, long-awaited 3G licences were awarded to China Mobile (home-grown, TD-SCDMA standard), China Unicom (WCDMA standard) and China Telecom (CDMA2000 standard) paving the way for investments of around Rmb200 billion (US$29.3 billion) from the three operators.

This chain of developments ended...

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