Phone Rates Reduced to Encourage More Overseas Calls
Chinese telecommunications operators are charging more for domestic calls beginning this month, but they cut the rates for international calls.
They hope to improve communications between China and the rest of the world.
In addition to raising domestic phone charges, the Ministry of Posts and Telecommunications (MPT) has hiked domestic mail prices about 150%.
The rate hikes apparently aren’t high enough to elicit public complaints.
Li Yahui, a public telephone booth owner in Beijing, said her clients responded “in silent compliance, as if they are used to such changes.” The MPT and State Planning Commission (SPC), announced the increases in a circular. It says citywide calls should increase 20% from the present level. Postage will jump to 0.5 yuan ($0.06) for the domestic mail of letters.
The MPT and SPC say the increases are in line with a series of government measures keeping the country’s inflation at bay.
In April, the year-on-year retail price growth was 4.7%, and consumer prices, which include service rates, registered a 7% growth, according to the State Statistics Bureau.
“Price changes are so important that they are expected to prevent the MPT’s 500,000-member staff and phone companies from continuously losing billions of yuan annually,” MPT officials said.
Additionally, the MPT cut the international phone rates by 30%. Previously, the cost of a call from Beijing to the United States was 26.25 yuan ($3.16) per minute. It’s now 18.37 yuan ($2.21).
International phone rates have been high since the founding of New China, but they jumped 50% in 1994 because of changes in the country’s exchange rates against US dollars and other foreign currency.
In recent years, the high rates resulted in a marked drop in overseas calls from China. In contrast, international calls to China have increased because of comparatively lower costs in foreign countries.
The MPT said the decrease eventually would increase its revenue because more people would be making international calls from China.
Long Distance Phone Rates will not change, while local calls made in rural areas will drop, the MPT said.
Until late May, calls from rural areas were considered longdistance. Person-to-person calls in rural regions had to be linked through urban telephone exchange facilities.
Because China has developed its telephone networks, the MPT said it could recoup those costs from other sectors.
Meanwhile, installation costs for new urban subscribers decreased.



