The basic Chinese telecom industry will see an increase in private capital investment this year, Wen Ku, director of the telecom department at the Ministry of Industry and Information Technology (MIIT), told a press conference on Tuesday.
Wen calls it a major step forward in deepening reform of the basic telecommunication industry, promoting broadband network infrastructure and improving services across the industry, Securities Daily reported.
A fair, competitive environment created by eliminating market barriers and enhancing supervision management across the industry is key to attracting private investors and initiating pilot projects, it was added.
Mao Weiming, vice minister of MIIT, said 2015 would be a year of reform and that the central government would continue to strengthen innovation-based growth and industrial upgrading.
The move is welcomed by the market.
Hu Zhiliang, director of CIConsulting’s Research Center for Industries and Policies, said private capital investment will help alleviate inefficiency caused by industry monopolies and create a more active and independent sector.
Hu also called for the government to further introduce supportive policies and industrial reform.