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China Telecom and China Unicom Under Investigation After Numerous Customer Complaints

Chinese regulators have started an anti-monopoly investigation against two of the biggest telecom companies in the country: China Telecom and China Unicom.

The National Development and Reform Commission is investigating the broadband units of the two companies, which have said they will fully cooperate with the inquiry, according to a Business Week report.

The investigation will review the pricing strategies adopted by the companies. China Unicom revealed it had already provided data to regulators to help with the investigation. The data includes pricing, volumes, and sales for 2010.

China Telecom also said it will be fully cooperating with the investigation. "The company has always been providing its broadband services strictly in accordance with the relevant laws and regulations. The company will fully cooperate with the relevant regulatory authorities," said the company, in a statement.

The investigation comes after consumers complained that the companies were charging high prices for services, but not providing the speeds for which they were paying.

Most big Chinese companies are owned and controlled by the state, so therefore, the investigation seems out of place.