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« HKBN dives into Wi-Fi | Main | The flaws in the MVNO plan »
Wednesday
Jan162013

First MVNO licences could be in June

The move to spark competition by introducing MVNOs – albeit on a trial basis - is the biggest change in Chinese telecoms in the last five years. So no surprise there’s been a steady drip of reporting. 

In the last two days we have learned:

  • The first trial licences are expected to be issued in June
  • Details of Suning’s MVNO ambitions
  • That at least Ericsson is prepared to cool expectations

The first licences could be issued as early as June, according to this Sina Tech report. That’s when Suning, one of the big electronic and appliance chainstores, hopes to receive its trial licence. Suning and rival retailers like D.Phone and Funtalk have emerged as the early favourites.

“The opportunity will lie with those who prepare,” CEO Jin Ming told Sina, explaining that the company has already restructured its existing communications and operator sales groups as its prepares  its application.

It is touting its 1700 nationwide stores, 8m online members and 3000-seat call centre and in the future, says the CEO, will go from offering customized handsets to delivering “customer experience” and “handset content service development.”

So far, so normal.

But you have to wonder how far Suning will get with its plan for “complete operator cooperation.”

While that’s a lot smarter than talking up competition with its future wholesale suppliers, it’s hard to see what advantage operators will get from forging ties with their rivals, especially as they are forbidden from striking exclusive deals.

Finally, for a more cautious perspective, Ericsson’s Chang Gang told the C114 website that he didn’t expect MVNOs to make much difference to the market.

"We haven’t seen a big change in other countries brought about by the arrival of MVNOs,” he said, and it wasn’t certain they would "cause any special change" in China, either.

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