China orders halt to new phone, Internet accounts in August as carriers focus on Olympics

The government has ordered China's fast-growing phone companies to stop adding new customers in August so they can better focus on ensuring service for the Beijing Olympics, company employees said Thursday.

The moratorium on new phone and Internet connections adds to sweeping measures, including traffic bans and factory shutdowns, that are meant to provide better conditions for the games, a major prestige event for the communist government.

"We simply won't touch the network any more to ensure its stability for the Olympic Games," said an employee of China Telecom Ltd., China's main fixed-line carrier, who said he had seen an internal company memo on the subject. He asked not to be identified further because he was not authorized to talk to reporters.

The curbs will interrupt explosive growth in new business for mobile carriers, which the government says are adding 9 million accounts per month.

Existing customers should not be affected, said the phone company employees and a spokesman for the Beijing municipal phone regulator. They said the curbs apply to Beijing, several other cities with Olympic events and possibly additional areas.

Businesses have been warned for months of Olympics-related curbs on traffic, construction and other activities.

Internet provider China Netcom Corp. distributed a notice to customers this week saying that they should not expect to add new accounts in August.

CNC will avoid installing equipment from Aug. 1 to Aug. 25 but might be able to open a new account if it requires no additional wiring, said a spokeswoman for the company who refused to give her name. The Olympics will be held Aug. 8-24.

China Mobile Ltd., the dominant mobile carrier, has been told to avoid making any physical changes to its network after July 20, said an employee. She asked not to identified by name because she was not authorized to talk to reporters.

China Mobile's corporate customers have been asked to inform it of special needs before the suspension takes effect, she said. But she said the existing customers were promised their service would not be disrupted.

"We guarantee the quality of communications during the Games," she said.

Phone calls to the press offices of China Mobile and China Telecom were not answered.

China has the world's biggest population of mobile phone users, with 592 million accounts. It rivals the United States as the No. 1 Internet population, with 210 million people online.

Source: AP News