E-commerce giant Alibaba is among 11 new companies authorised in China to start virtual operators, Dow Jones reports. China's telecom regulator said that it awarded licences to 11 private companies to run mobile telecommunications businesses based on services leased from China's three state-run carriers. The companies that won licenses include a subsidiary of Alibaba Group and rival Beijing Jingdong Century Trading Co, which runs the popular JD.com e-commerce service.
JD.com will begin offering mobile communications services in the second quarter of next year and use new and existing customers "to help us become China's fourth-largest mobile carrier within five years," said JD.com Vice Chairman Zhao Guoqing. An Alibaba spokeswoman confirmed that the company's HiChina Web Solutions (Beijing) Ltd subsidiary received a licence, but declined to elaborate.
In its statement, the Ministry of Industry and Information Technology said the new plan would "stimulate competition" in the telecom industry and "provide users with more choices." The regulator said other companies could still apply for virtual telecom licenses. The initial 11 firms would lease services from China Unicom and China Telecom, and subsequent licensees could work with China Mobile.
The other companies receiving licenses were DiXin Tong, Bashi Zaixian, Zhejiang Lianlian Technology Co, Telling Telecommunication Holding Co, Funtalk China Holdings, Beijing Huaxiang Lianxin Technology, Beijing Bewinner Communications, Soshare Network Technology and Telephone World Digital Group.
