Railway Telecom has set up 11 provincial branches since its debut on March 1. Peng Peng, the president of the company, said: "We will aim at 5 percent of the market share in five years." At present, China Telecom takes up 99 percent of the fixed-line market.
The first exchange of Railway Telecom was put into use on Sunday in Fengtai District near Beijing South Railway Station.
As the network is planted along railway lines, it can only cover areas within five kilometers away from the station. The company said it will expand its networks to residential areas nearby.
Due to different network systems, users of Railway Telecom and China Telecom can not communicate with each others. However, the price of the company attracted 200 customers on the first day of service.
Under the price regime of Railway Telecom, telephone installation will cost 680 yuan (US$82), nearly half of China Telecom's 1,235 yuan (US$149) for that service.
Railway Telecom charges local calls 10 percent lower than China Telecom. The company said it will cut price for long-distance calls to 20 percent lower than its rival, when its long-distance networks commence operation in June.
(China Daily 04/03/2001)
