Private Firms Given Licenses to Offer Mobile Services
In a move to open up the world’s biggest phone market, China gave out telecommunication service licenses to 11 private firms as of yesterday. These firms are called virtual carriers are now allowed to offer mobile services directly purchasing a bandwidth directly with the three mobile providers namely China Mobile, China Unicom and China Telecom.
According to the Ministry of Industry and Information Technology these firms cover the whole spectrum of the industry including online retailers and mobile handset distributors. These firms will offer mobile communication services packages directly to consumers using their own brands and packages. These telecom providers will need to provide a bandwidth using fair and favorable prices. a two year trial is being proposed to allow companies to rebrand and repackage services to consumers.
The new policy will also create new opportunities to companies, retail giants and media groups to penetrate the mobile Internet industry which analysts says is the country’s latest bid in promoting and attracting private funds to the telecom industry that will enhance competition and service quality. Private firms that have telecom experience and with a team of more than 50 people can apply with the ministry for a license to provide the services.