China's Ministry of Information Industry (MII) reported that around 10% of trans-regional telecom value added service providers failed a government-led annual "inspection."
The MII conducted the inspection to gauge the local firms' level of service quality, the agency said.
Out of the 433 telecom service providers, 388 passed the inspection while some 45 firms would be re-checked, the MII said.
The agency said failure to pass the inspection could mean the cancellation of a firm's telecom license.
The MII however did not disclose the list of companies that could face the penalty.
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