MIIT issues mobile virtual network operator licenses to 15 enterprises

The Ministry of Industry and Information Technology officially started issuing mobile telecommunication reselling service licenses to 15 enterprises, including Alibaba and Xiaomi, indicating a complete commercialization of a pilot program launched five years ago.

Virtual network operators do not own telecommunication networks; instead, they purchase telecommunication services from basis telecom operators, and resell network services after repackaging, usually at lower prices.

The MIIT began a mobile telecommunication reselling service pilot program in May 2013 to encourage the entry of private capital to telecom sector. Forty-two private enterprises have participated in the pilot program until the ending of the program in April this year.