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Regulator Opens Door for MVNO in China

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Report Summary:

China’s MIIT released a consultation for launching a two-year trial of MVNO service in January 2013. The regulator will allow Chinese private companies to enter the mobile market as MVNOs, and require each incumbent state owned operator to host at least two MVNOs. This is a significant step toward opening the mobile communications market and encouraging competition. We expect large retailers, Internet giants and enterprise communications providers to join the first wave of MVNOs in China. However, the new entrants will have to struggle with incomplete regulatory policies in this area and focus on service innovation to survive in the competition with some of the world’s largest mobile network operators.

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