The Ministry of Industry and Information Technology (MIIT) has revealed that it has already decided on a preferential policy for TD-SCDMA inter-network fee settlement, and that the relevant documents have been issued to China's three major telecommunications carriers.
According to the documents, implementation the policy, which will reduce the inter-network settlement fee for calls made from TD-SCDMA networks, will be implemented in stages, and the reduction in fees will be has high as 80%.
Under the policy, between January 1 and December 31, 2010, if a subscriber with one of the special TD-SCDMA phone prefixes (157 and 188) makes a call to another telecommunication carrier's subscriber, China Mobile (NYSE: CHL; 0941.HK) will pay that carrier RMB 0.012/minute, while for calls made by its non-TD-SCDMA subscribers, China Mobile will pay an inter-network settlement fee of RMB 0.06/minute.
In addition, the MIIT has adjusted the inter-network settlement fee for fixed-line phones. Beginning on June 1, 2010, when calls are placed from a fixed-line telephone to a domestic mobile number, the fixed line provider will pay the mobile provider a settlement fee of RMB 0.001/minute.