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MIIT: MVNOs Cannot Build Mobile Infrastructure

Sina Tech, 2/08/14

China's Ministry of Industry and Information Technology (MIIT) has released new regulations stating that China's new mobile virtual network operators (MVNOs) will not be allowed to invest in the construction of mobile network infrastructure. Pursuant to the regulations, MVNOs that have not obtained approval to construct domestic telecom facilities cannot invest in the construction of wireless networks, core networks, transmission networks, and other telecom network infrastructure. MVNOs wishing to use the aforementioned infrastructure must purchase or rent network facilities provided from telecom operators that have already obtained approval to operate basic telecommunications services. MVNOs are not permitted to purchase or rent transmission network facilities from companies that have not been approved to operate said businesses.

The regulations also stipulate that handsets and other network access equipment supplied to MVNOs must gain network access approval from the MIIT.

Editor's Note: The MIIT has issued two batches of MVNO licenses to a total 19 operators at present. For more background on this topic, please see "MIIT Issues Second Batch of 8 MVNO Licenses" MD 1/29/14 issue and "MIIT Issues First Batch of MVNO Trial Permits to 11 Firms" MD 12/26/13 issue.

Keywords: wireless MIIT MVNO regulation network construction

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