Telecom sector opens wider for eight firms
Print Edition
CHINA issued telecommunications service licenses to another eight firms yesterday as the government aims to draw private funds to the state-owned telecom industry to enhance competition and service quality, analysts said.
The firms, or virtual carriers, will be allowed to offer mobile services directly to consumers through their own brands and price packages by purchasing bandwidth from China Mobile, China Telecom and China Unicom.
The new licenses were granted to the firms including Xiaomi and subsidiaries of Youku Tudou and Haier, according to the Ministry of Industry and Information Technology.
“Mobile has a strategic position in our business while Youku Tudou’s content and user base make telecommunications services more attractive,” Victor Koo, Youku Tudou’s chairman, said in a statement yesterday.
The new licenses will help Youku Tudou to offer more attractive and customized services to 600 million users, said the country’s biggest online video website, which is in discussions with China Unicom for new business.
Xiaomi and Youku Tudou also said last week they would cooperate in media and entertainment, covering an ecosystem of devices such as smartphone, tablet and digital TV.
It was the fourth time that virtual carrier licenses were issued. Previous firms that got the licenses included JD.com for online shopping and BusAP as a media provider on public transport.
The move marks China’s latest bid to attract private funds to the telecom industry to enhance competition and service quality, according to analysts.
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