China may confiscate fiber-optic network assets built without govt approval

BEIJING (AFX-ASIA) - Companies that have been building fiber-optic networks without government approval may have their assets confiscated under official plans to clamp down on illegal construction, the China Daily reported, citing a joint announcement from the Ministry of Information Industry and the State Development Planning Commission.	    Many companies have been investing heavily in building fiber-optic networks in the hope of making money from grabbing a share of the rapidly-growing broadband communications market, the paper said.	    But illegal construction has caused the overlapping of networks and duplication, wasting large amounts of money and harming the government's attempts to regulate the industry.	    The two ministries said construction of networks that have not received government approval must stop immediately.	    Companies that are not licensed to operate basic telecom businesses but have network resources will have 30 days to report their positions.	    The MII will soon issue licences to telecom operators for network leasing and sales to ensure the development of an orderly competitive market.	    Those companies that are granted licences will be able to buy the assets confiscated by the ministry, the paper reported.    

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