The National Audit Office in a report to the fourth session of the Standing Committee of the 11th National People's Congress indicated the continuing investment in the telecom sector was a waste as the nation is beset under-utilized cables and other infrastructure already available.

Auditor-General Liu Jiayi in a report to China's top legislating body indicated that the telecom sector had witnessed huge growth since reforms initiated in 2002, however, continued investment in the sector negated performance.

Statistics indicate over US$ 164 billion or 1.12 trillion yuan was invested on basic infrastructure facilities during 2002 - 2006, but only a third of the cables were used. More funds were wasted to maintain existing cable network as well as those being installed.

China Telecom and China Netcom, fixed-line phone service providers, have used up about 50.8 million yuan expanding network for fixed lines. China is restructuring its telecom sector where China Telecom, China Mobile and New Unicom would provide fixed line and mobile services. New Unicom is expected to result from a proposed merger between China Netcom and China Unicom. China Mobile and China Telecom are expected to invest between 50 billion to 60 billion yuan in infrastructure building in the next three years.

source:RTTNews