China's ICT ministry could approve applications from several local companies to operate as MVNOs by as early as May, as part of its plan to open the nation's telecom sector to more private investment.
The Ministry of Industry and Information Technology (MIIT) has told Chinese media that it will give the green light as soon as May, Shanghai Dailysaid.
Software company Ufina and home appliance retailer Suning have submitted applications, and industry sources expect internet giants such as Alibaba and Tencent to also apply, according to the report.
Prospective applicants must have telecom experience and employ at least 50 people.
MIIT announced in January that it is considering conducting a two-year pilot whereby private companies can apply to become MVNOs.
The move was hailed as the early stages of opening up China's huge telecom sector to private investment, including potentially to foreign players – although the MIIT has stipulated that only domestic companies can apply for an MVNO license.
Per the proposal, China Mobile, China Telecom and China Unicom will be required to reach reseller agreements with at least two MVNOs each, and must offer access to their networks at a fair price.
Informa Telecoms and Media has predicted that OTT players - such as Tencent with its popular messaging service - will be the most likely candidates for the MVNO licenses. He suggests that deals with OTT players could give Chinese mobile operators a chance to differentiate themselves.