China cracks down on Internet provider monopoly deals

Updated 2017-03-21 14:31:02 CGTN

What can you do if your Internet connection is slow? A common option is switching to another Internet service provider (ISP).

But it turns out that there may be only one provider in your neighborhood, leaving you no option to switch to.

Some ISPs in China are busy signing “monopoly agreements” with communities across the country, which exclude competitors from entering, and grants them massive profits.

But this kind of agreement is illegal. As reported by Beijing Business Today (BBT), some branches of China Unicom have been punished by authorities for signing such agreements.

Insiders told BBT this kind of business is very profitable.

“We only need 50 to 80,000 yuan (around 7,200 to 11,500 US dollars) to cover a community. That cost can be covered in just three months. Then we can gain 10-times the profit every year,” one of the insiders said.

But the monopoly brings more trouble than convenience to users. With no competitors, the ISPs may raise prices and lower service quality, in order to achieve even more profit.

This goes in sharp contrast against the requirements of China's Ministry of Industry and Information, which has previously launched five campaigns to lower prices and raise the speed of Internet connections across China.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58July 22 2018 22:28:57

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16July 22 2018 22:28:57

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18July 22 2018 22:28:57

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords