Thursday, March 08, 2007

A Memo of China Netcom

3/8/2007, Several days ago, the two largest fixed line carrier in mainland China, China Netcom and China Telecom signed a "stop competition" contract. According to this contract, China Netcom will stop the expansion in northern China, and China Telecom will do the same in Northern China.
But Will the two carriers follow the contract? Seems it is not so easy. A memo of China Netcom recently published on Internet showed us some hinder information.
The memo is named "Measures on dealing with new contract between China Netcom and China Telecom". In this memo, China Netcom demanded each subsidary company in southern China should take care of protecting their key customers, all ISPs, all distributers should not on the exchange list with China Telecom. At same time, in Northern China, they should try best to avoid new customer losing to China Telecom.
How to look at this memeo? The so called "stop competition contract" already violated the free market principle, that is a very ridiculous contract. Compared to that, this memo is in compliance to the free market spirit.

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