China to slash internet fees

By MARY ANNA WRIGHT

China is to slash internet and long–distance telephone call charges by over 50 per cent in a bid to encourage more people online

This move is also expected boost the profile of listed mobile phone carriers China Unicom and China Mobile by reducing the charges they pay for leasing transmission lines.

The timing of the new policy comes soon before the planned overseas listing of China Telecom which makes a significant proportion of its money from pricy long–distance calls.

The move may be an attempt to retain investor confidence for the launch of what could be a $10 billion initial public offering on the Hong Kong and New York stock exchanges next year.

Last month conflicting stories about mobile phone rate adjustments sent the stocks of China Mobile and China Unicom into a nosedive.