China liberalizes cellphones

By Alex Singleton | 5 September 2005

Dr Eamonn Butler, visiting China, says:

The China Daily News tells me that the government of the People's Republic is going to remove the regulation on its telecoms charges. At the moment, the PRC has some of the highest mobile phone charges in the world, thanks to detailed price regulation of course.

The new plan is to set maximum charges and then let the market sort it out. It is believed that the maximum - not just on mobiles but on long-distance and other calls - will fall as competition drives prices down.

Mobile phones are today recognized as an important driver of economic growth in developing countries. The Chinese government - which has been engaging in an unprecedented push for free markets and free trade - recognizes this. This is excellent news for the people of China.