Mobile roaming fees up for debate
Posted by admin on January 7th, 2008
The National Development and Reform Commission (NDRC) and the Ministry of Information Industry (MII) said they would hold public hearings this month to discuss a new scheme to lower roaming fees.
Government-set roaming tariffs have long been a target of criticism in China.
Although a de facto caller-pays scheme has replaced the two-way charging system— in which both caller and receiver pay for calls — the roaming fees have remained largely unchanged for years.
Currently, China Mobile users typically pay RMB0.60 a minute to receive calls if they travel to another city.
Last Maythe NDRC and the MII held an opinion poll.
The poll found 64% of respondents want roaming fees scrapped.
According to Guotai Junan Securities research, the roaming fees could be cut by as much as 47%.
Reform would have a bigger impact on China Mobile, the larger of the two cellular operators, as roaming fees are one of its major revenue sources.
Li Gang, vice-president of China Unicom and former chief of China Mobile’s Guangdong subsidiary, reportedly said China Mobile’s revenue from roaming fees was RMB49 billion($6.71 billion) in 2005, while Unicom generated only billions of yuan.
That accounted for about one-fifth of China Mobile’s total revenue of RMB243 billion in 2005. In 2006, its total revenue was RMB295.4 billion with a net profit of RMB66 billion.
Lu Tingjie, a professor at the Beijing University of Post and Telecommunications, said roaming fees in China are ‘unjustifiably high’ and lowering price is in line with the global trend.
Source: Jongo News
