BEIJING-Guangdong Telecom, a provincial subsidiary of fixed-line operator China Telecom, has launched a controversial call-forwarding service in three cities in Guangdong Province whereby mobile users can forward incoming calls to fixed-line phones without paying the called-party fee or the call-forwarding fee, which the mobile operators charge.
During a three-month promotional period, the new service only costs 30 yuan (US$3.62).
China Mobile and China Unicom, which fear a drop in mobile revenues as a result of the scheme, have lodged a complaint with the telecom regulator. Shares of the two mobile carriers’ listed subsidiaries dropped between 2 percent and 3 percent following the news.
China Telecom already operates a PHS service called Xiaolingtong in some cities to try to garner some revenue from the lucrative mobile market. The company is eagerly awaiting a mobile license, but it is still uncertain when China’s Ministry of Information Industry may issue one.
Incumbent Minister of Information Industry Wu Jichuan wants to wait until third-generation technology is mature and market demand is proven before issuing a third mobile license. But Wang Xudong, the new minister expected to take over in March, may be inclined to speed up the issuance of a new license to increase competition.
In separate news, China Mobile has launched an international short message service enabling its customers to send short messages abroad at a cost of 1 yuan (US$0.12). The reception of a message coming from abroad will be free.
