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The cost of telecom services in China, including fees for mobile phone, 3G and Internet usage, is causing some discontent. At the 2010 China Internet Conference in Beijing, many participants feel the costs are too high.
The annual China Internet Conference was well attended by officials, entrepreneurs and industry experts. On a survey of 100 attendants, 17 percent think China's telecom fees are too high. 51 percent think it's just high, and 31 percent think it's about average. Only 1 percent think costs are not high.
Yu Yongfu, CEO of Excelle View said "China's 3G fee is ten times that of South Korea. "
In terms of how much telecom charges could be slashed, 77 percent of respondents think they could be be reduced by between 30 to 50 percent. 10 percent even think costs can be cut by over 75 percent. And a minority 13 percent think there's not much space for a price decrease.
Xiao Ligang, Secretary-General of 3G Industry Assoc. said "The profit margin of China Telecom is about 20 percent. While global telecom operators' average profit is only 5 percent."
On the impact of telecom charges on China's overall economy, nearly 30 percent of attendants say it will hamper the development of the information industry. The Ministry of Industry and Information Technology says China Mobile planned to attract 50 million 3G users by the end of this year. But by the end of June, 3G users subscribing to the three telecom operators only totaled 25 million, far below expectations.
- Gov't pushes lower telecom fees 2010-08-20