MII Lowers Inter-network Settlement Fees by 60%

Sina Tech, 1/10/08

The Ministry of Information Industry (MII) has issued a new Method for Calculating Internet Switching Center Settlement Fees. The new method yields a 60% drop in charges compared with the version issued in October, meaning lower expenses for operators.

Smaller operators such as China Unicom (NYSE: CHU; 0762.HK; 600050.SH) and China Tietong, which lack backbone networks and overseas connections, will benefit most from the reductions. In the past Unicom has complained of unfair settlement charges forcing thousands of its Internet cafes to close. Tietong has also made similar complaints.

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