Under the pilot, private companies will be able to buy mobile communication services in bulk from providers which have their own mobile networks, repackage them and sell them to end users, the official Xinhua news agency said.
China Mobile, which recently reached an agreement to sell Apple's iPhone, dominates the domestic market with over 760 million subscribers. China Unicom and China Telecom trail with 280 million and 185 million users respectively.
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The 11 companies include Net.cn, a subsidiary of online retail giant Alibaba, rival e-commerce firm Jingdong and major Chinese mobile phone retailer D.Phone. Shenzhen-listed Telling Telecommunication Holding and Beijing Bewinner Communications also got the green light.
The approval documents lay out rules for market supervision, service charges and quality, consumer rights and information protection, the ministry said.
It did not detail how the pilot would affect the network providers.