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Premier Li Keqiang says China is the world's biggest mobile phone market, but internet speeds are ranked worse than 80th in the world. Photo: AFP
Opinion
Mr. Shangkong
by George Chen
Mr. Shangkong
by George Chen

Small change in China's mobile data services shows big power struggle in reform

Incident with Big Three network operators reflects the difficulties of economic reform

Premier Li Keqiang has apparently lost his patience in recent weeks about many small but important things, as China's Big Three mobile network operators were eventually forced by the premier to cut the prices for their mobile data services and increase internet access speeds.

Li had to personally host meetings to place a strong and decisive order for the Big Three - China Mobile, China Unicom and China Telecom - to change their service plans.

It made him a sympathetic figure. As premier, he must have many more important and bigger issues to deal with on a daily basis. Shouldn't this be the job of Li's subordinate, the minister in charge of the telecommunications industry, rather than Li himself?

The incident with the Big Three reflects how difficult it is for the Chinese government to reform its economy, especially when dealing with state-owned enterprises.

Earlier this year, both Li and Li's boss -- President Xi Jinping -- complained on different occasions about the challenges in getting central government policies executed quickly at ground level.

It is no secret that the central government has seen increasing difficulties in coordinating with different ministries and local governments.

The popular joke spreading widely in Chinese society is that sometimes "policy orders can only be known within Zhongnanhai", referring to the central government's head office near Tiananmen Square in Beijing where Xi and Li work every day.

"China is the world's biggest mobile phone market, but internet speeds are ranked worse than 80th in the world. Our information infrastructure is backward," a frustrated Li told a conference last week.

It is no secret that the central government has seen increasing difficulties in coordinating with different ministries and local governments

He said mobile network providers should aim to increase speeds for urban users by 40 per cent and also cut service fees.

The result? Many internet users felt they were just being fooled again. Some attacked the new service deals provided by the Big Three as "tasteless" publicity stunts.

China Mobile offered users one gigabytes of extra mobile data usage between 11pm and 7am at a monthly charge of 10 yuan under its new service plan.

Typically, internet users will use their Wi-fi rather than their mobile phone data connection to get online when they are at home at night.

For sure, Li won more public popularity, especially among the tech-savvy younger generation, with his order for cheaper and faster internet services, but the Big Three's insincere response to the premier's call may make him appear weaker.

Rather than an ending, with some small changes to mobile data services, this looks like just the beginning of a new battle to restructure bureaucratic state-owned firms.

The bigger drama may be unfolding soon.

 

This article appeared in the South China Morning Post print edition as: Mobile changes point to bigger drama
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