China's first MVNO has officially launched wireless voice and data services as part of the government's two-year MVNO trial.
Telephone World Digital subsidiary T.Mobile launched services in the city of Hangzhou on Sunday, state-run news agency Xinhuareported.
The company plans to expand to other parts of the Zhejiang Province later. It is using China Telecom's network in the province.
T.Mobile is one of 19 companies to receive an MVNO license. Last year, China's ICT ministry MIIT instructed the nation's three mobile operators to partner with at least two private companies each that are interested in becoming MVNO brands for a two-year trial.
Other MVNO licensees include units of e-commerce giant Alibaba and retailers Suning and D.Phone. The latter two started taking pre-orders for MVNO services at the start of this month.
According to the report, industry watchers are divided over the potential impact of opening China's telecom market to MVNOs. Some believe the companies will have a positive effect on prices by improving competition.
But others feel that the MVNOs will face an uphill battle gaining traction in the market, and that they will need at least 1 million customers each to merely break even.