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Rumor: MIIT to Issue MVNO Licenses in October

China Securities Journal, 9/17/13

According to an unnamed company currently applying for a mobile virtual network operator (MVNO) license, the company has entered into final MVNO negotiations with Chinese telecom operators, with a list of successful applicant companies to be confirmed no later than October.

According to a release from China's Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission (NDRC), the organizations will allow for prices for local and long distance calling, roaming, SMS, MMS, mobile data, and other mobile services to be determined by market forces throughout upcoming MVNO trials. Price control over charges for calls and messages from customers to users on another operator's network will also be removed.

China's three major telecom operators opened tenders for MVNO partners in July. According to the tender procedure, candidate companies are required to undergo a review period, with the final list of selected companies required to obtain approval from the MIIT.

Editor's Note: According to reports from business news website Huxiu.com, China Telecom (NYSE: CHA; 0728.HK) has given nods of approval to Gome (0493.HK) and D.Phone as potential MVNO partners. China Unicom (NYSE: CHU; 0762.HK; 600050.SH) will select Suning (002024.SZ) and Net263 (002467.SZ), while China Mobile (NYSE: CHL; 0941.HK) has chosen Dr. Peng Telecom & Media Group (600804.SH). None of the companies have confirmed the rumors.

Editor's Note: For more background on this topic, please see "China's Telcos Announce MVNO Cooperation Notices" MD 6/03/13 issue and "Rumor: Suning to Work with China Mobile as MVNO" MD 7/16/13 issue.

Keywords: China Telecom China Mobile China Unicom D.Phone license wireless MIIT Gome Suning MVNO Dr. Peng NDRC CHL 002024.SZ 0493.HK 0728.HK 0762.HK 0941.HK 600050.SH 600804.SH CHA CHU Net263 002467.SZ

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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