The Hindu Business Line : China eases norms for foreign telecom investors

The decision to relax the existing “Administration of Foreign-funded telecommunications Enterprises Provisions” was taken at the cabinet meeting yesterday with an aim to boost the development of the telecomm sector of the country by providing an easy acc ess to foreign investors.

As per the revised rules, applicable with immediate effect, the minimum capital requirement for a foreign investor to manage basic communication services at national or provincial level has been reduced to half, Xinhua reported on Saturday.

However, no relaxation in the capital requirement was provided to the companies providing value-added services, the agency reported.

The cabinet also retained a restriction on foreign investors that required them to own not more than 49 per cent of a company shares in case of those offering basic services and 50 per cent for those providing value-added services, as per the 2002 law.

The new provisions, meanwhile, allowed foreign listing of domestic telecomm enterprises without approval from industry supervisors.

China's domestic telecomm industry has boomed in recent years, with the 2007 revenue reaching 72.8 billion yuan ($145.9 million) up 10.9 per cent year-on-year, due to its large population base and rapid economic growth. - PTI

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