Policy & Regulation

MIIT Might Adjust Cross-Network Balance Standard

Updated:2020/2/26 21:25

It is reported that the Ministry of Industry and Information Technology issued a notice about adjusting the cross-network balance standard among backbone networks. The policy adjustment listed are as below:

From July 1st, 2020, the one-way settlement policy between China Telecom and China Unicom will be replaced by interconnection without settlement. The original balance policies and standards will remain until July 1st, which is, China Mobile shall pay China Telecom and China Unicom the cross-backbone-network balance fee, and the balance standard is not higher than 80,000 yuan/G/month.

From January 1st, 2020, China Telecom, China Mobile and China Unicom will reduce the settlement fee for China Broadcasting Network and CITIC Network, not less than 30% of the current standard.

From January 1st, 2020, free-of-charge interconnection between the backbone networks——China Telecom, China Mobile and China Unicom, and non-profit network service, namely, China Education and Research Network, China Science and Technology Network, Great Wall Broadband Network and Economy and Trade Network, etc.

In short term, the party that benefits the most from the policy is undoubtedly China Mobile, while China Telecom and China Unicom, which charge cross-network settlement fee as a revenue source in the traditional model, will inevitably encounter a considerable loss.

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