Ministry of Industry and Information Technology, Implementing Opinions on Encouraging and Guiding the Entry of Private Capital into the Telecommunications Industry

Issued: June 27 2012

Main contents: Private capital is encouraged:

(1) to engage in pilot mobile communications resale business projects;

(2) to engage in pilot network access business projects and customer premises network business to promote broadband development;

(3) to engage in network hosting business: telecommunications enterprises will be guided to turn over the management and maintenance of their own or leased domestic networks, network elements or equipment to third party private enterprises;

(4) to engage in value-added telecommunications business: investment of private capital in the internet sector is supported, and private capital is to be guided in participating in the operation of internet data centres (IDC) and internet access service business (ISP);

(5) to participate in the investment in, construction, operation and maintenance of, infrastructure such as base station rooms, communications towers; and

(6) to enter into the basic telecommunications operation market through the taking of equity interests therein: private capital is to be attracted by reducing the percentage of state-owned equity in listed companies or by way of capital and share increases. The bringing in of private strategic investors by basic telecommunications enterprises is supported.

Qualified private enterprises are encouraged to apply for qualifications of enterprises engaged in telecommunications project design, construction and supervision, information network system integration, user line construction, and bid agency for telecommunications construction projects.