China’s once closely held telecom service sector is getting more crowded as new players join the game.
Citic Networks, a subsidiary of state-backed conglomerate Citic Group, won a license to offer basic telecom services nationwide. Citic Networks follows two other newcomers — China Transport Telecommunications & Information Center (CTTIC) and China Broadcasting Network Corp. — to join a market that has long been dominated by three big state-owned carriers.
The newcomers will bring more competition to established players China Telecom, China Unicom and China Mobile, analysts said.
Citic Networks has specialized in network leasing, satellite transponder leasing and some value-added telecom services. With the new license, the company will expand its corporate-focused business to serve more public customers and tap new business in cloud computing and 5G, a person close to the company said.
Citic Networks may also seek a partnership with tech giants such as Tencent Holdings, Alibaba Group and Amazon, the person said.
Citic Networks is 51% owned by Citic Group and 49% owned by privately funded Beijing Yingtong Technology Co. after a 2017 stake sale.