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INTRO
China is opening up its mobile telecom sector to private enterprises.
In a move expected to improve competition and innovation, in a field dominated by three telecom giants.
It's also part of the government's efforts to encourage private investment - and create more jobs in China.
For years, China's mobile telecom sector has been dominated by three giants -- China Mobile, China Unicom and China Telecom.
But this will be soon changed, as private investment is expected to enter the monopolized sector.
The Ministry of Industry and Information Technology says it will launch a pilot program for private companies to buy mobile telecom services from operators... And resell them, to end customers.
The ministry says this aims to allow more private capital into the industry, promote market competition and improve mobile telecom services.
Under the plan, Chinese-funded private companies will also be able to add their own services to then sell to customers, through their own brands.
And they won't have to build new mobile telecom infrastructure - just set up a customer service system and other supporting networks if necessary.
The pilot program has various rules...including requirements of service quality, phone number allocation, as well as the wholesale prices for contracted services.
And telecom giants can't include exclusive clauses in contracts with private enterprises... To allow more market competition - and more innovative services.
The pilot program is designed to last for two years - and private bidders can send applications to telecom authorities within the first year.
Since 2012, China's State Council has been adopting more policies like this, to encourage private investment in state-run industries...
Including water, power, mining, and telecommunications.
In the hope of creating more jobs, more domestic consumption - and more sustainable growth.
