MII to carriers: Put a cap on price bundles

MII to carriers: Put a cap on price bundles

Staff Writer  |   February 28, 2008
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The MII has told service providers to limit the number of price bundles they offer and to ensure their price promotions are clear and simple.

In a "guiding opinion" to carriers posted to its website this week, the ministry said they should offer no more than ten price bundles or packages in each market area.

The MII told carriers they must "share the fruits of telecom development and reform" with customers. Operators should keep prices "simple and clear", and set charges in a "scientific and rational" way, the notice said.

The MII reminded carriers that users have the right to choose their price plans and called on them to improve the transparency of their prices. It said operators should not exaggerate price claims or make misleading statements in the promotions.

Meanwhile, MII deputy minister Jiang Yaoping said the government would continue its reform of telecom pricing.

"Based on the mechanism to fasten market competition, we will conduct price cap controls and gradually let carriers decide on prices," he said at an industry conference.

Through its price monitoring system, the MII would further regulate indirect charges and handle pricing issues that generate the most complaints.

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