Segmentation Brings Prosperity
1 min readWhen recalling the changes of the past few years,the determination of the Chinese government to transform the telecommunications industry is plain to see,as are the results it has achieved.
In 1998,the segmentation of China Telecom,known as the“dinosaur”,began to be discussed.At that time,this company monopolized almost all telecommunications business,such as fixed and mobile telephones,satellite communications and paging services.Consequently there were frequent complains of poor service and inadequate supplies.
Consumers soon become aware of the benefits of the market competition.They saw the price of mobile and fixed communications,and access to the Internet Steadily drops.In 2001,a price war was waged among various enterprises,and the discount telephone cards and telecommunications advertising became a common phenomenon.That year,there were new reports every now and then of certain enterprises criticizing their counterparts for their ruthlessly competitive price-cutting tactics,which was a matter for medication by the relevant government department,something hitherto unheard of.
Some analysts predict that once the reorganizations enterprises is complete,the prices of various telecommunication service will fall even faster,and in the wakeof such reductions,the rate of development in China’s telecommunications .