What peculiar problem is the telecommunications industry currently facing?

The world bank has put a loan of $215 million to help reconstruction of China’s telecommunications system. The project will support Beijing’s reform effort in telecommunications and help increase its long-distance and local telephone capacity. Peter Right, the bank’s telecommunications project engineer said China has shown dramatic and unprecedented growth in telecommunications, which, if it continues, will make this sector a case.
    The number of long-distance calls in China grew by 42.2% from 1992 to 1997. But there are still some 1.6million people yet to receive it. The Chinese government has embarked on a program to expand and improve telecommunications with planned investment of about $250 million between now and 2004.