The Chinese government is taking another stab at reforming the telecommunication sector: it ordered its three domestic telecom operators to share and co-build infrastructure to avoid repeat construction in the wake of industry restructuring

One question is whether the government’s intervention will lead to a more level-playing field? It is worthwile remembering that previous attempts to reform the sector have either failed or met with notably lower levels of success that expected.¬†Like in most other contries, incumbent operators (e.g. China Mobile and China Telecom) have managed to maintain a dominant market share in their respective segments.

For sure, the new scheme is interesting as it creates de facto co-location. But it by no means implies that access Рthe real crux of the problem Рwill be secured for the rivals. In fact, the government may want to re-think its policy and consider alternative models to enhance competitiveness Рlike network separation.