TUESDAY JUNE 27 2000      PUBLISHED BY CHINA DAILY
                                                           CITY NEWS

Flying high
SHEN Zejiang still feels a little regret over giving up his pilot's career to be president of China Eastern Airlines Co Ltd (CEA).

Kids learn od city's culture
"SOCIETY is the largest and most effective classroom," said Zheng Hong, a painting teacher at Shanghai German School.

More control spraying of termite nests downtown
FOUR more termite nests have been found along Nanjing Road since the first was discovered in a tree on the street's pedestrian section two weeks ago. One of the nests is located in a well-known fashion store on the road.

A toast to queen's health
THE British Consulate-General held a large reception on Thursday at Regal International East Asia Hotel to celebrate the birthday of Queen Elizabeth II.

JV insurers get diplomas at Fudan
TWENTY-TWO marketing professionals from AXA-Minmetals Assurance Co - the first Sino-French insurance joint venture - received their diplomas on Sunday from local Fudan University in a Fudan-AXA-Minmetals training and development programme.

Better air quality reported
SHANGHAI'S air quality turned for the better last week from the previous week, according to a report from the Shanghai Environmental Monitoring Centre.

Drugs hit female, young
MORE female and juvenile addicts were found among the increasing number of drug-consumers, according to the result of a survey conducted recently by the city of 300 registered drug addicts.

Erotic dancers caught in act
A MAN was recently arrested for organizing obscene dance performances to attract customers to a club, according to Jinshan District Procuratorate.

$12,000 still unclaimed
BAOSHAN District police are still looking for the owner of over 100,000 yuan ($12,000) found on a road in the district nearly two months ago.

Survey finds lead in teas
LOCAL tea drinkers are warned to be careful about what they drink because some teas have been found to contain excessive levels of lead and pesticide.

Police seize thief wanted by Japan
THE last of two Shanghai residentswanted by Japanese police for involvement in a series of thefts in Japan

Whiter than white at the tooth wash
YOU will read elsewhere of a sparkling new service about to close in on Shanghai - a teeth cleaning laundry.

Film stars light way for future women
WOMEN knew their place in China at the beginning of the 20th century.

Briefs

Likely end to two-way charges on cell phones
By Zeng Min

DESPITE the massive popularity of mobile phones in China, the world's second largest market for cell phones, many users bemoan the high charges they incur through the two-way billing system.

"Sure, via mobile phone, I can contact my business, my wife or my mum whenever I need to, but I think the fees are too high," said Wang Zhenhua, a Shanghai restaurateur.

Two-way charges mean the user has to pay for every call, no matter whether it's outgoing or incoming - including harassment or prank calls.

"It is unfair for me to have to pay for a call that comes from someone else. Every month when bill comes, my heart bleeds," said Zhu Chengyi. He usually has to pay up to 800 yuan ($97) a month for calls.

Old system dies hard

For years people have speculated the system will be changed, but a timeframe has remained elusive.

A senior Chinese official who asked to remain anonymous said central authorities have stamped approval on the abolition of two-way charges in favour of a new system where callers only pay for their own calls.

The official was quoted by Chengdu Business News, a newspaper based in Southwest China's Sichuan Province, as saying that the revised policy is expected to be effective soon but he refused to give concrete details.

"We don't know when it will happen," said Yuan Sutai, a spokesman for the Ministry of Information Industry.

Mobile phone users and sellers, meanwhile, long for the change.

"One-way charges will be good news for our sales as more people will be likely to buy cell phones," said Stefan Bahrenburg, manager of the new generation of mobile networks for Siemens' China operations.

His words were echoed by David Almstrom, vice-president of Ericsson's operations in China. "Most nations don't double charge consumers, and if Chinese consumers can be freed of the burden, the market will explode," he said.

However, an official from Shanghai Mobile, a leading mobile service provider, said one-way charges are unlikely to happen soon.

"It is unlikely the State will implement one-way charges in the next or two years because of technical problems and profit distribution between mobile phone companies and fixed line and paging firms," he said.

Impact of one-way charges

The government is thought to be holding off fear that if one-way charges are introduced, the fixed line phone and paging industries will fall. The two businesses, especially the paging sector, have been in a tailspin as the mobile market booms.

"If the one-way charge comes, I will definitely retire my BP and buy a mobile phone. After all, it does not make economic sense to use BP and have a handset," said Zhang Hong, a 20-something staff member of a local PR firm.

Some experts say the paging industry is not on its way out but they note that the sector needs to improve its service and develop new features to hold on to customers.

Wang Gang, an engineer of Eastcom, a Hangzhou-based telecom player, in charge of paging business, said beepers can be upgraded to become a two-way communication device and that on-line features such as stock checks, email exchanges and information and on-line games and videos can be developed.

"Beeper users will be easy prey for the mobile phone business if pagers are not updated. Interactive features could give them a niche in a tough market," he said. Eastcom is now doing research and develop-ment into two-way communi-cation tech-nology, but he said the products are hard to market right now as their prices are too high to lure customers.

Phone market fiercer

Some customers say even with new charges, mobile phones will stay expensive.

Zhang Jinhua, a local reporter, said: "I've heard that according to the new formula, a call will be charged at 0.6 yuan ($0.07) a minute for a local call, 0.2 yuan ($0.02) more than an original single call. The price is still high," he said.

Zhang Ming, a reporter for a local computer magazine, said mobile phones will never replace beepers and fixed line market because of their own handicaps.

"Radiation is the top concern. It is not good to use a mobile phone frequently, it will have a bad effect on your brain," he said.

He added: "Many mobile phone users carry a beeper. They close their mobile phone and activate their BP. When they get message by BP, they will respond by cell phone. This is the most cost-effective way of using these technologies," Zhang said.

Copyright 2000 by Shanghai Star. All rights reserved.