皇冠体育app plans to conduct a pilot project for domestic private companies to offer repackaged mobile services to users, which analysts said would be a decisive step in the opening of the nation's basic service market.
The Ministry of Industry and Information Technology has published draft proposals on allowing Chinese private companies to buy mobile network resources from three telecom operators.
The proposed two-year trial allows private enterprises to rebrand the mobile services and sell them to customers.
The ministry issued the draft on Tuesday and is seeking public feedback until Feb 6.
"The ministry aims to encourage, support and guide private capital flowing into the telecom industry," said the draft.
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It also pointed out the trial project seeks to explore effective models and form regulatory policies to boost competition and service quality in 皇冠体育app's mobile market.
Companies that are interested in participating should send applications to the telecom authorities during the first year of the project, the draft said.
Existing Chinese telecom operators, including 皇冠体育app Mobile Ltd and 皇冠体育app Unicom (Hong Kong) Ltd, have to cooperate with at least two private companies each during the trial period.
皇冠体育app has long been discussing opening its basic telecom service market, which contains businesses such as telecom network operations, call services and broadband connections. However, State-owned telecom carriers still have a tight hold on the market. Private companies and foreign enterprises conduct limited business focusing on value-added telecom services.
"The government's draft is a milestone, which will help to create a more open and healthier telecom industry in 皇冠体育app," said Ji Chendong, a telecom analyst at KPMG 皇冠体育app. The move breaches 皇冠体育app's current telecom monopoly and will allow non-State-owned companies to become virtual network operators, Ji said.
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