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Beijing is not expected to agree to the implementation of a calling-party-pays billing system for mobile phones as it would reduce operator revenue, the South China Morning Post said on Wednesday.
"This year, CPP (calling-party-pays) will not be implemented," an unnamed industry executive told the newspaper, adding that it would be "very difficult" to implement the system next year.
Under the present system, both callers and receivers are charged. But under the CPP system, only the calling party pays, reducing operators' revenue by half for each call.
Investors have expressed concern about potential declines in revenue for mobile phone carriers, despite expectations that any losses from the new billing system would be partially offset by an increase in subscribers.
News of the billing system's possible implementation partly caused China Mobile (Hong Kong) Ltd's and China Unicom Ltd's share prices to fall in August.
The newspaper said the change to the billing system was being considered by Beijing to increase the penetration of mobile-phone services in China.
The executive said changing the tariff system while the industry was in a high-growth stage would result in business uncertainty.
He said that most countries which had the CPP system had done so early on in the development of their mobile-phone industry.
Shares of China Mobile closed at HK$24.80 (US$3.2) on Friday, while China Unicom shares ended at HK$8.40 (US$1.1).
(Agencies 10/08/2001)
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