Boston, MA 08/28/2014 (wallstreetpr) – According to reports, The Ministry of Industry and Information Technology which regulates the entire telecom industry in China has stopped taking applications from China Unicom, China Mobile and China Telecom. These applications were for those companies that wanted to be a partner with the above-stated entities. The final list of operators that were shortlisted by the government did not include Qihoo 360 Technology Co Ltd. (NYSE:QIHU) and Baidu. QIHU is an anti-virus software developer in China. It tried very hard to adjoin hands together with government, but failed to do so. The main objective behind QIHU’s desperation was but the long term growth and success in Chinese market.
What may be the reason behind back-out:
A person close to this matter said, “Baidu quit in the half way while Qihoo 360 Technology Co Ltd. (NYSE:QIHU) couldn’t make it to the final list due to some unavoidable reasons.” There are rumors in the market that both of these companies might not be able to see any growth prospect in this deal that’s why Qihoo 360 Technology Co Ltd. (NYSE:QIHU) and Baidu decided to drop their plans in midway.
The government handed out six licenses on August 25, 2014 which took the total number of companies that received the approval to start a business to 25. The fourth and final batch of the companies will be announced very soon. As per the reports, it will take the total number of companies in the pilot to 40. The last date of this pilot is December 31, 2015. There are no set records or data about the number of companies that have applied for MVNOs’ services, but experts claim that the number wouldn’t be very high.
The biggest obstacle here is the price of MVNOs’ services. Most of the telecom operators offered prices that were a lot higher than those which were offered to retail customers by them.
