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New Internet-based telecom service giant

Asia Times, 5 May 1999

BEIJING - China's High-Speed Internet Demonstrative Project, jointly funded by the State Administration for Radio and TV Broadcasting and Film, the Ministry of Railways and the Shanghai municipal government, has been approved by the State Development Planning Commission.

Experts here said the project means that a third major provider of basic telecom service will appear after China Telecom and China Unicom.

Sources revealed that, by relying on optical-fiber network established by the sectors of railways, broadcasting, film and television, which features enough bandwidth and access to most of the Chinese families, the project aims to establish an Internet Phone-based basic telecom network second only to China Telecom in scale but much better than China Telecom in bandwidth. The project will provide services such as cable TV, VOD, Graphics&Text information customization, Internet access, telephone call and multimedia communications.

Boosters say the network will lower the operation cost for Internet service providers and telecom service providers to the benefit of the common Chinese people.

Experts here said the project is expected to end the dominance of China Telecom and China Unicom on the market of basic telecom service.

(Asia Pulse/XIC)