China’s Wasted Telecom Investments
There are some 500 million people using mobile phones in China with another 800 million wanting to ditch their landlines and go mobile..
Sounds like a good industry to get into…ring tones, camera phones, cables, towers. Not so fast. Between 2002-2006 more than Y1.12 trillion ($164 billion) has been spent on construction of basic facilities. Good, right? Wrong.
The repeated investment has dragged down performance is the word.
Only about 1/3 of the telecom cables are being used and more money is required to just maintain the cables – those being used, those are getting laid.
China Telecom and China Netcom also poured $7 billion plus during the same time period.
All those cables dressed and nowhere to go.
The answer – divide and privatize say some. But, for goodness sake, no more money, please.
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