A high-powered commission led by Premier Zhu Rongji will soon be established to take control of the mainland's telecommunications industry.
According to the China Daily members of the commission will include high-ranking government officials such as State Vice-President Hu Jintao and Vice-Premier Li Lanqing, as well as the heads of the various ministries under the State Council such as Information Industry Minister Wu Jichuan.
Salomon Smith Barney telecoms analyst Rohit Sobit said the new commission could give the telecoms regulator, the Ministry of Information Industry (MII), as much power over the industry as the State Council.
MII director-general Song Ling said the high-ranking commission would be responsible for mapping out the telecoms sector's long-range development plans, while the MII would be responsible for implementing the plans.
He denied rumours that the central government would dissolve the telecoms regulator.
A special group would also be formed to implement the government's telecoms policy, the paper cited director of the Beijing municipal telecoms policy, Hua Pinglan, as saying.