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China: Regs reportedly order coordinated telco cost cuts

 |  June 7, 2014

Local media are reporting in China that the nation’s State-owned Assets Supervision and Administration Commission are requiring the top-three telecommunications operators to simultaneously cut marketing costs.

According to reports, China Mobile, China Telecom and China Unicom are required to cut marketing and sales expenses by up to 50 percent over the next three years. The SASAC is the majority shareholder of the firms.

Reports note that the order would be unusual in other jurisdictions around the world and likely set of anticompetitive alarms regarding coordinating pricing strategies. The plan in China is expected to hike costs for consumers as the companies offer fewer promotional offers.

Leading operator China Mobile, which controls two-thirds of the market, will reportedly cut spending by $4.3 billion this year.

Full content: Marbridge Consulting

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