Chinawill allow private capital to gradually enter all phases of the telecommunications industry, a CPPCC deputy said on Thursday.

"The Ministry of Industry and Information Technology is working on a detailed plan, and a specific schedule will be released soon," Li Yizhong, former minister of industry and information technology and a CPPCC deputy, told reporters.

Currently, private capital is only allowed to go into the value-added sectors of telecommunications, but China is willing to let private capital enter monopolized industries like energy, telecommunications, railway, and even national defense in the future, Li said.

He also revealed that the cost of fixed networks and mobile phones in China is expected to drop by 9 percent annually, and that 4G (fourth generation wireless technology), which has just been recognized internationally, will further lower costs once it goes into widespread use.

In response to complaints about low broadband speed in China, Li said the ministry has carried out a specific plan to improve the situation. The next generation Internet technology to be launched in China will increase broadband speed in urban areas to 20 MHz and to four to five MHz in rural areas, he said.