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Chinese telecommunications industry opens up to private investments

China’s telecommunications sector is currently dominated by state-owned companies. In a bid to stimulate the economy, the Chinese government is inviting private investments to boost competition and stop monopolistic and unfair competition.

Private investors will be able to invest in 8 areas:

Mobile telecoms service resale
Network access and customer premises network services
Managed network services
Telecoms value-added services
Engineering project design, implementation, management, network systems integration, and project bid brokering
Infrastructure construction, operations, and maintenance for areas including base stations and communications towers
Entering the basic telecoms market through the purchase of equity
Expanding investment in international telecoms services to develop the international capacity market

How would such a move impact the state-owned telco companies in China?

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