Sina Tech, 3/17/15
On the evening of March 15, national state-owned broadcaster China Central Television (CCTV) aired an expose criticizing salespeople at the Changde city branch of China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) Hunan province subsidiary for not adequately enforcing real-name registration laws. CCTV claimed that sales staff would open accounts for customers who were unwilling to provide ID, and even discovered instances of a single ID number being used to open five accounts.
China Unicom responded yesterday by announcing that the general manager and deputy general manager of Hunan Unicom, which is responsible for oversight of the Changde branch, have both been demoted. The assistant to the general manager and the head of customer accounts at the Changde branch have also been sacked.
In light of CCTV's expose, China Unicom also announced a series of measures to improve its implementation of real-name registration in Hunan. All Unicom distributors and sales points in the province will undergo self-examination and rectification. China Unicom will send auditors and third-party companies to conduct covert investigation into sales networks. China Unicom has also set up a reporting hotline for public participation in monitoring.
Editor's Note: For more information on this topic, please see "CCTV Expose Accuses China Mobile of Supporting Phone Phishing," MD 3/16/15 issue.