By Tang Guhan
China's Ministry of Industry and Information Technology announced on Monday that 15 Virtual Network Operators (VNOs) had attained their official licenses for operating mobile communication resale's services, including Alibaba and Xiaomi.
The VNOs usually buy telecom services from telecom operators and repackage them into their own products for reselling to their customers. These business trials have been operating for five years and have officially been put into the market.
The mobile numbers starting from 170 to 171 are those operating under the VNOs in China. In May 2013, the Chinese government introduced mobile communication resale's solutions to encourage private companies to enter the telecom sectors. Forty-two companies have obtained their pilot licenses since then.
After the announcement, China's Ministry of Industry and Information Technology will supervise the operations of these 15 companies through annual report announcements and other credit control approaches.
The Chinese government will continue to give official licenses to the VNOs based on their past performances.
The presence of the VNOs will provide customized telecom services and products while cut the operating costs of the traditional operators.
Statistics show that the customer's volume from operating mobile communication resale's services has approached 70 million as of the first half of 2018.
Pilot companies who did not expand their businesses with small coverage and those who violated the rules may lose their opportunity of obtaining the license, according to people close to the matter.
