Unicom's internet cafe chain running ground for unfair inter-carriers billing system

8/15/2006, According to local press, more than 2000 internet cafes belonging to China Unicom closed recently. The number amounts to 80% of the total number of Unicom's chain internet cafe. The closing of so many internet cafes means that the chian internet cafe strategy which China Unicom once expected high went bankrupt.
"It is unfair and high billing by fixed line carriers that lead to today's result." General manager of China Unicom's data and fixed line business, Mr. Zhu,shijun told the press. "We have to pay 2200RMB for each Mbps traffic to China Telecom, but we can only get 500RMB return from those franchised cafe owner. That means for each Mbps traffic, Unicom will have 1700RMB loss. Also, the price China telecom charge other customers is much lower than the price they give to us. "

China Unicom's internet cafe business began from summer of year 2004, they planned to build 2500 to 2800 franchised internet cafe around the country. Up to now, No formal feedback from China Telecom on this.