Wireless Networks

China grants more MVNO licences to ease monopoly

Six private companies in China have been granted licences that will allow them to offer mobile services via reseller agreements, in a move that further eases the state monopoly on China’s telecom sector.

MVNO licences were granted to 19 companies earlier this year by the MIIT (Industry and Information Technology Ministry) in an attempt to foster competition in the market, thereby driving innovation.

Companies will be permitted to sell repackaged voice, SMS, MMS and data services under their own brands once they have acquired them from the three major operators.

The MIIT has stated that the licences have been issued under a pilot programme, adding that it laid out the framework for opening up the telecoms sector to private firms over a year ago.

Prior to filing an application for a licence, companies are required to sign a cooperation agreement with one of the three main providers, and may also have to update their charging and customer service practices.

Currently, China’s three state operators provide the country’s 1.2 billion connections. China Mobile leads the market with 790 million, China Unicom takes second place with 295 million and China Telecom comes third with 190 million.

 



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