Challenges in the telecom sector: A case study of 3G rollout in China

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Journal Article
International Journal of Private Law, 2010, 3 (4), pp. 393 - 402
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The year 2008 was a big one for the telecommunications industry of the People's Republic of China (PRC). In May 2008, the PRC State Council conducted a significant reform in the telecom sector, which created a mega- telecommunications regulator and three mega-operators. Shortly after this reform, on 31 December 2008, the PRC government decided in favour of a rollout and issued three 3G licences to all the three mega-operators against the big picture of the global economic downturn and with the government decision to stimulate domestic consumption. This paper studies the PRC telecommunications sector, focusing on the current 3G rollout and its impact on the industry regulator's function and power. It also analyses whether the industry is equipped with proper regulatory measures to embrace the forthcoming 3G era in China. In the course of doing this, the paper brings out various regulatory challenges that the PRC regulator should carefully address. This paper concludes that 3G rollout in the PRC is a good opportunity for the country at the present time if the regulatory regime can keep pace with the industry movement. © 2010 Inderscience Enterprises Ltd.
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