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Chinese mobile competition heats up with MVNO launches

Telecom Innovations - Services & Products
Published: 2013-03-06

China has recently opened the mobile market to MVNOs in an effort to attract private investments in the mobile industry. The two-year MVNO trial run would see mobile network operators opening their networks to at least two MVNOs as mandated by the government.

New MVNOs that have emerged recently involve consumer electronics retailers like Telling and Suning. Both retailers are looking to improve their equipment sales through bundling mobile services along with the mobile handsets that they sell. Other players are rumoured to be interested in applying for MVNO license like Tencent (a major over-the-top messaging provider in China behind QQ chat and WeChat) and Baidu (a popular online search engine).

Currently, state-owned players dominate the mobile market led by China Mobile accounting for 64% of the market. China Unicom and China Telecom trail far behind with about 21% and 14% market shares, respectively. With over 1 bn mobile subscriber in China and a mobile penetration rate of over 80%, there is indeed a very lucrative opportunity for private investors to become MVNOs.

Published: 2013-03-06

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