MIIT mulls over telecom industry reform

BEIJING, Nov. 6 (Xinhua) — China’s Ministry of Industry and Information Technology is mulling over a fresh round of telecom industry reform, said Zhang Feng, chief engineer of MIIT, on Thursday at a press conference held by the State Council Information Office.

Zhang said the Fifth Plenary Session of the 18th CPC Central Committee put forward deepening telecom industry reform further in the 2016-2020 period. The development and integration of enterprises are decided by market demands. MIIT is mulling over the progress and orientation of telecom industry reform.

As the authority discloses expectation for telecom industry reform, share prices of Besttone Holding (600640.SH) and China Unicom (600050.SH) once rose to the upper limits, and those of Shaanxi Broadcast & TV Network Intermediary (Group) (600831.SH), Datang Telecom Technology (600198.SH), Dr. Peng Telecom & Media Group (600804.SH) and ZTE Corp. (000063.SZ) also increased immediately.

Thanks to the stimulus policy that encourages private capital invest in broadband operation, operating revenue of Dr. Peng Telecom & Media Group rose 12.00 percent year on year in the first three quarters of this year to 5.75 billion yuan and the net profit attributable to shareholders of parent company soared 41.5 percent to 597 million yuan.

Chinese authority licensed pilot operation of virtual carriers on December 26, 2013 and there are 42 virtual carriers so far. The pilot scheme will be ended at the end of this year and formal licenses are expected to be issued next year.

Guotai & Junan Securities held that the reform on state-owned telecom enterprises has begun and significant investment opportunities are likely to exist in the near future.

An analyst with CITIC Securities suggested A-share investors to pay attention to listed companies under Datang Telecom Technology & Industry Group, FiberHome Technology Group, China Potevio, and China Electronics Corp. (Edited by Luo Jingjing, luojj@xinhua.org)

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