The Ministry of Industry and Information Technology officially started issuing mobile telecommunication reselling service licenses to 15 enterprises, including Alibaba and Xiaomi, indicating a complete commercialization of a pilot program launched five years ago.

Virtual network operators do not own telecommunication networks; instead, they purchase telecommunication services from basis telecom operators, and resell network services after repackaging, usually at lower prices.

The MIIT began a mobile telecommunication reselling service pilot program in May 2013 to encourage the entry of private capital to telecom sector. Forty-two private enterprises have participated in the pilot program until the ending of the program in April this year.