Mobile communication resale business open for private capital in China

Ministry of Industry and Information Technology on May 17 released the “Notice of pilot work on mobile communication resale business”(hereinafter referred to as” Notice “), mobile communications resale business pilot project was formally launched, which encourages and guides private capital to enter further into the telecommunications industry.
Mobile communication resale business is the purchase of mobile communications services from basic telecommunications services for mobile network operators, and the service can be repackaged into a third-party brand to be sold to end users. “Notice” pointed out that the mobile communication resale companies can not build wireless network, core network, transmission network and mobile communication network infrastructure. But they must establish a customer service system. Based on the needs, they can establish a business management platform as well as billing, business accounts and other business support systems. The mobile communication resale business does not include the resale of satellite mobile communication services. “Notice” also made clear that, mobile communication resale business is classified as the second class of basic telecommunications services, and managed as value-added telecommunications business.

The “notice” pointed out that resale companies which obtained the pilot approvals can purchase mobile communications services from basic telecommunication business operators which included mobile voice services, SMS / MMS, mobile data services, business can be carried out in a pre-paid way, the service fees can be paid in advance for a maximized period of two years.

Source: 中国网(China.com.cn)

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