China's Ministry of Industry and Information Technology's recent moves to open up the nation's telecom sector to private competition is part of a play to address the “unbalanced” competitive landscape.
Responding to press questions about improving internet speeds and quality in China, MIIT minister Miao Wei expressed a belief that encouraging competition is the most effective way to coerce the big three state-owned operators into improving their services, c114reported.
He said the ministry has so far allocated MVNO licenses to 42 private companies, to stimulate competition in the sector and break China Mobile's stranglehold on the market.
The MIIT has been making moves to open up China's massive telecom sector to MVNOs since 2013, and has instructed operators to partner with multiple MVNOs for a two-year trial. The nation's first MVNO went live in May.
The ministry has also been issuing approvals for private companies to enter the fixed broadband sector since the beginning of the year, after opening up the sector to private competition in late 2014.
“We are trying hard to advance the three major operators constructing a relatively balanced competitive landscape which is unbalanced now,” the minister is reported as saying.
“I believe the network speed will get higher, the service will get better and the price will be lower with the competition intensifying.”