China nears internet monopoly settlement

Two government-owned Chinese telecom firms are close to a deal with authorities following a probe into claims they had a monopoly on internet broadband services, state media said on Tuesday. China's economic planner, the National Development and Reform Commission, has been investigating since earlier this year China Telecom and China Unicom for allegedly hindering other companies from entering the broadband market. For the government to publicly take on the two state-owned companies was unusual, sparking speculation Beijing is seeking to put more muscle behind a 2008 anti-monopoly law. The agency is now likely to agree to halt the probe if the two telecom giants "admit fault and correct it", the state-linked China Business News said. Firms under investigation for monopoly behaviour can ask for a halt in the investigation by telling the government details of the business, measures to eliminate monopolies and timetable for implementation, it said. However, China Telecom, the nation's largest fixed-line operator, said only that it was assisting in the investigation. "The company is currently fully co-operating with the relevant regulatory authorities on the investigation of alleged monopolistic conduct in the broadband access market," China Telecom said in a statement sent to AFP. A spokeswoman for China Unicom, the country's second largest mobile provider, said it had no further comment on the issue. China Unicom has previously said it offers Internet services with official authorisation and it was providing the government with information about pricing, volume and other areas of the business. The commission said it was probing the firms amid consumer dissatisfaction, while some analysts speculate smaller firms in the broadband services sector could be helping drive the investigation, but there is no confirmed link. The two companies are estimated to command two-thirds of internet access in China. The average speed of China's broadband services is less than one-tenth that of developed nations including the United States, Britain and Japan, a government think-tank has claimed. But fees charged by internet access service providers are as much as three to four times higher than those countries, according to the Advisory Committee for State Informatization, which operates under the State Council, or cabinet