CHINA yesterday formally launched a second telecommunications operator, Liantong Communications Co, effectively ending the lucrative decades-old monopoly of the Ministry of Posts and Telecommunications.
Liantong has the backing of the ministries of electronics industry, power industry and railways and will initially provide local and long-distance telephone services and cordless telecommunications services in urban areas not adequately served by the existing network.
It also counts among its shareholders the China International Trust and Investment Corp, the China Resources group, the China Merchants Holdings group, and the China Everbright International Trust and Investment Corp.
These four powerful giants have each established a strong network in Hong Kong as pillars of China's corporate and economic presence in the territory.
Set up after a fierce two-year battle to break the ministry's monopoly, Liantong already has about 80 major foreign telecommunications operators knocking on its doors and is hoping to sign deals with a player that has powerful political connections.
China does not allow foreign companies to operate telecommunications networks, although they may invest in plants to manufacture telephone parts and telecommunications components.
