Regulating Telecom Price Hikes

At the end of October 2002, media attention focused on the surprise announcement by China Telecom that it would be increasing its interconnection charges resulting in a possible fourfold increase in calls to the PRC. Interestingly, in the same month, regulations came into effect to strengthen the administrative control over the pricing of telecom services in China that have been designed to regulate such price hikes.  The State Development Planning Commission (SDPC) and the Ministry of Information Industry (MII) issued the Procedures for Examination, Approval and Filing of Telecommunications Charges Provisions (Trial Implementation) (the Provisions), with effect from October 1 2002.