China to expand real name system to mobile phone users by Sep.

August 20, 2010 11:39 PM EDT

After pushing the real name system for online game users on August 1, China will expand the policy to mobile phone users starting from September 1, local media reported on Friday.

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Finishing its meeting with the Big Three telecom operators in China, the Ministry of Industry and Information Technology announced China will implement real name registration system for mobile phone users, Tencent reported, citing an unnamed source from MIIT.

According to MIIT, new mobile phone users need to register with their real names from September 1, while old customers also need to submit their information within three years.

According to a report from Xinhua, 70 percent of over 700 million mobile subscribers in China are currently using pre-paid cards and thus didn't register, making misuse for SMS spam and fraud easy.

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The report notes that these users must also register with their operators in the future. It is still unclear how the many street-side shops selling prepaid cards will be standardized.

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According to Tencent, the Big Three operators have been prepared for the change, making the registration technically operational.

However, industry analysts doubt feasibility of the legislation of the system in the huge Chinese market within a short period. It takes at least two to three years to complete registration among Chinese mobile phone users, said Jinqiao Chen, telecom expert in China.

Analysts also note that the real name system will turn many users away from the major telecom players. Many users choose pre-paid card because it grants them anonymity.

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This article is copyrighted by IBTimes HK, the business news leader