Recently, the MIIT has issued an official notice, which encouraged private capitals to enter into broadband Internet access market by multi patterns. The open of broadband Internet access market is another introduction of private capitals to the telecom business after virtual operators.
In view of the broadband Internet access service patterns that private enterprises provide services by their self-built infrastructures and own brands, the MIIT formulated specific pilot programs, the first pilot will last for 3 years in 16 cities, including Guangzhou, Wuhan, Shanghai and others.
The MIIT introduced two patterns for introduction of private capitals. The first is that the private enterprises can cooperate with basic telecom operators by various forms including capital cooperation, service agent, network agent maintenance and others, and share the benefits; the other one is for private enterprises that have obtained ISP business certificates, they can rent network sources from the basic telecom operators and provide broadband Internet access services by their own brands.
As we have learnt, the minimum amount of registered capital of the pilot enterprises is CNY 20 million, and they should have more than 3 years working experience in telecom industry. The Pilot Scheme will enter into force on March 1st, 2015.