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11 private firms get licenses to offer mobile services
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CHINA issued telecommunications service licenses to 11 private firms today, the latest move for the world’s biggest phone market to open up the field.
The firms, often called virtual carriers, will be allowed to offer mobile services directly through purchasing bandwidth from China Mobile, China Telecom and China Unicom, a first step in opening up the state-controlled industry.
The firms include firms covering the whole industry spectrum like online retailer 360Buy.com and handset distributor Tianyin, according to the Ministry of Industry and Information Technology.
The firms will offer mobile communications services directly to consumers with their own brands and packages. Telecom carriers have to provide bandwidth at "fair or favorable" prices, the ministry said.
The ministry is proposing a two-year trial to allow companies to repackage and rebrand services to consumers, it said in a previous statement.
The new policy is also a new opportunity for companies such as Tencent, retail giants like Suning and media groups to penetrate the mobile Internet sector, according to analysts.
Suning and Alibaba were not in the list to get licenses yesterday.
The move marks China's latest bid to promote and attract private funds to the telecom industry so that competition and service quality are enhanced, analysts said.
Private firms, which must have telecom experience and a team of over 50 people, can apply to provide the services.
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