8 companies licesed to resell communication business of telecom operators
BEIJING, Oct 21, 2013 (Xinhua via COMTEX) --
Eight companies have reached
agreements with China Unicom (CHU.NYSE; 00762.HK; 600050.SH) and
China Telecom (CHA.NSYE; 00728.HK) to resale mobile communication
The eight companies are Suning Appliance (002024.SZ), D.Phone,
FunTalk, Gome (00493.HK), Aisidi (002416.SZ), Telling (00829.SZ),
Alibaba and JD.com.
Suning is the first one among the eight companies that announced
that it had reached the agreements with the basic telecom operators.
A company insider said that Suning was striving for agreement with
the other basic telecom operator China Mobile (CHL.NYSE; 00941.HK).
On May 17, the Ministry of Industry and Information Technology
(MIIT) issued the Pilot Plan for Mobile Communication Resale
Business. Under the pilot plan, private companies could buy mobile
communication services from basic telecom operators with mobile
networks, repack them as their own-branded services, and then sell
them to end users. They are also called "virtual carrier" by the
But an insider of telecom operators told the Xinhua-run China
Securities Journal that though some private companies had passed the
qualification review for telecom resale business or even reached
agreements with telecom operators, their qualification still need to
be affirmed by the Ministry of Industry and Information Technology.
On the other hand, a report from Guosen Securities predicted that
China's three basic telecom operators were likely to give 0.5 percent
to 1 percent of their market shares to the private companies, worth
of about 6.25 billion yuan to 12.5 billion yuan. If no more than 10
companies finally get the telecom resale business licenses, each of
them will gain revenue of 600 million yuan to 2 billion yuan
But an industry insider said the virtual carriers had to make more
business innovations to exploit new markets with differences from the
basic telecom operators, because the three telecom giants were not
likely to welcome new rivals into the stock market.
He added that it would be a long way full of challenges for the
private companies to gain profits from the innovative business.
(Edited by Li Xiaoyu, Lixy@xinhua.org)
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