Chinese telecom company CHU , quote ) has requested that the National Development and Reform Commission (NDRC) suspend an investigation into its investigation into broadband pricing.
These are "monopolies," it should be noted, that were originally set up by the Chinese government.
It was said at the time that the two companies could face fines of between 1% and 10% of their 2010 operating revenue.
China Unicom now admits it has found "room for improvement" in its pricing management and a need to boost its interconnection quality with other backbone network operators.
The company said it will address both issues in addition to lowering internet bandwidth unit fees for public customers.
It will be of great interest to CHU's shareholders to see how the government regulator NDRC reacts to China Unicom's request
China Telecom has also joined in the request to end the probe -- or effectively settle with the government.
Since the probe was announced, CHU has retreated 1% and CHA is down 4%. Both stocks are down again this morning.