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May 10, 2014

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Telcos set fees freely from today

CHINESE authorities said telecom carriers can make pricing decisions on fees on their own from today.

The Ministry of Industry and Information Technology and the National Development and Reform Commission made the announcement in a circular released yesterday.

Telecom companies can freely design service packages and price them based on consumer needs and market situations as long as the pricing abides by the law and regulations, according to the circular.

Companies must describe their service packages, including charges of each service and how subscribers will be charged, simply and clearly. They are prohibited from exaggerating their services and misleading consumers, and they are encouraged to provide special offers to low-income subscribers.

China has three major telecom carriers — China Mobile, China Unicom, and China Telecom.

But consumers frequently complain about poor services and high charges. In one case, mainland consumers were angered with China Mobile for offering much cheaper packages in Hong Kong, where competition is fierce.

Wen Ku, the ministry’s director of telecom development, said granting telecom carriers pricing autonomy would boost competition and improve efficiency.




 

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