.MII Faces Difficult Controlling Prices

Analysts say MII appears unable to curb unauthorized price competition, as it cannot exercise maximum penalty of license revocation when only two mobile operators exist. After meeting MII officials at CMHK (0941) investor conference last Friday, analysts say MII intends to rely mostly on operators' self-discipline to prevent unauthorized price cutting, which could bode ill for mobile operators long-term ARPU.

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