In the Chinese media, there are reports that the Ministry of Information Industry will soon announce plans for restructuring along functional, not regional lines, as reported by Matrix East December 1st. According to Xinhua, China Telecom is likely to lower telecom rates this year. According to the report, rates for leased lines and international telephone calls will be lowered, while rates for postal service and local phone calls will rise. This should be good news for the Chinese Internet users protesting high access fees who organized a boycott of the China Net service on January 1st.

In other news, the director of AsiaTech ventures, Hanson Cheah, suggested Hong Kong is naturally suited to become a hub for Asian e-commerce. Mr. Cheah believes Hong Kong benefits from its world class logistics, but says that Hong Kong must develop broadband infrastructure if it is to really become a hub.