A New Interconnection Regime for Telecoms Operators

February 29, 2000 | BY

clpstaff

The prohibition on the use of the China-China-Foreign (CCF) model as a means of investing in a telecoms network has meant that there have not been any…

The prohibition on the use of the China-China-Foreign (CCF) model as a means of investing in a telecoms network has meant that there have not been any official investment opportunities for foreign telecom operators in China. However, this situation is likely to change with the PRC¡¯s proposed accession to the WTO.

On September 9 1999 the Ministry of Information Industry (MII) issued new rules on interconnection, the Administration of the Interconnection between Telecommunications Networks Tentative Provisions, (the Regulations). This is a first step towards establishing a new interconnection regime.

These rules lay the groundwork for open interconnection. They are relevant for future project financings of telecoms networks because interconnection plays an important role in determining cashflow and rates of return.

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