China's Ministry of Industry and Information Technology (MIIT) began circulating a draft of plans for mobile virtual network operator service trials on Tuesday in a bid to encourage private capital investment in the communications industry. The MIIT is seeking feedback on the draft plans by Feb. 6.

According to the draft, "mobile virtual network operator services" refers to the purchase, rebranding, and resale of mobile communications services from infrastructure telecommunications service operators.

Companies engaged in the resale of mobile telecommunications services will not develop their own communications network infrastructure, but will be required to develop their own customer service systems, and may develop their own service support systems, including service management platforms, billing, and account systems, as necessary.

The draft states that trials will be conducted over a two-year period during which infrastructure telecommunications service operators will be required to sign partnership contracts with a minimum of two service resellers.

The MIIT will further research the necessary arrangements for commercial operations based on the progress and the ultimate results of the trials.

Tencent has reportedly acquired a mobile virtual network operator license that would allow the company to enter the telecom sector. Tencent denied the rumor on Dec. 26.

Tencent’s WeChat has over 300 million users as of November of last year.