China to Open Its Telecom Market

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1Q 2014 | IN-1018326


China to Embrace Foreign and Private Capital


On January 6, 2014, China’s Ministry of Industry and Information (MIIT) issued a new policy to further open its value-added telecommunications services (VAS) to foreign investors. The enterprises that operate the regulated VAS business should register in Shanghai’s free trade zone (FTZ), and the service facilities should also locate in the area. The relaxed foreign ownership currently only applies to the enterprises that meet the requirements.

One year ago, China announced a consultation paper on the provision of mobile communication resale businesses on a trial business, which started to pave the road for private capital to enter the telecommunication industry. Private enterprises will be able to provide mobile voice, text, and data services by leasing networks from China Mobile, China Unicom, and China Telecom. On January 2, 2014, 11 mobile virtual network operator (MVNO) licenses were awarded to private enterprises suc...

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