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On 13 March, Mr. Zhang Guangyuan, Deputy Director of the
Anti-monopoly Bureau of the National Development and Reform
Commission (NDRC) spoke on the latest development of NDRC's
antitrust investigation on China Telecom and China Unicom. Mr.Zhang
said that the two companies have so far completed a 100G bandwidth
expansion and committed to further reduce the internet access
service charges. The Anti-monopoly Bureau of the NDRC will continue
to press for rectification and reform of the two companies.
This investigation was initiated last April, targeting at China
Telecom and China Unicom for their alleged abuse of market
dominance in the Internet access market by administering price
discrimination against different Internet service providers
(ISPs)1. On December 2, 2011, the two companies
publicized statement on their websites saying they have submitted
applications to the NRDC for suspension of the antitrust
investigation and decided to correct their misconduct, but NDRC
demanded more concrete pledges.
Mr. Zhang mentioned that in February 2012 the two companies each
submitted an update of their rectification efforts to the NDRC.
China Unicom also further clarified its commitment as popularizing
the 4 MB and above rate bandwidth for at least 50% public users by
the end of 2012.
Under the Anti-Monopoly Law, the NDRC is of no mandatory
obligation to publicize its decisions. Based on the currently
available information, it is not entirely clear whether NDRC has
accepted their commitments and thereby suspended its antitrust
investigations against the two giant telecoms.
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