City encourages cheaper, better telecom service
22/7/2003 15:03
Watchdog of Shanghai's communications market will not intervene the
price cuts by local telecom operators, following a strategy to encourage cheaper
and better quality telecom services.
Zhang Jian, director of Shanghai
Communications Administration, was quoted as saying this last Friday by today's
Sina.com.
The remarks were made amid the price tug between the city's key
mobile telecom operators Shanghai Mobile Co. and Shanghai Unicom Co.
"With
Shanghai's population of mobile phone users rising, prices of mobile telecom
will naturally see a fall on a general basis while the quality of service and
telecom network will continue to improve," he said.
However, the low price
strategy must be conducted on the basis of reasonable profits, Zhang added, as
the authority discourages competition with prices under the cost.
Zhang
described the price fall as a natural outcome of the local mobile telecom
market.
The low price strategy seems successful in attracting local mobile
phone users, the Sina.com report said.
Shanghai Mobile, for example, has seen
its users clime over 10,000 since it launched two low-price package services
last week.
Under the services, users will be able to enjoy discounted phones
during certain periods and select some phone numbers for lower
rates.
Jane Chen / Shanghai Daily news
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