Alibaba, Tencent take rivalry to mobile network services

E-commerce giant follows rival's move to launch 3G data and voice services through a subsidiary

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Alibaba says users will get maximum flexibility and transparency from the packages and services offered by HiChina. Photo: Reuters

Published: 1:15am, 18 Apr 2014Updated: 6:43pm, 21 Apr 2014

The proverbial battle for the hearts and minds of mainland consumers between Alibaba and Tencent will soon play out in a vast new market for the two companies: mobile network services.

Alibaba, the mainland's biggest e-commerce service provider, said yesterday that it would launch 3G data and voice services in June through subsidiary HiChina, one of 19 companies licensed to operate as a mobile virtual network operator in the country.

The announcement, made through the Alizila website of Hangzhou-based Alibaba, followed reports earlier this month that online retail platform operator JD.com in which Tencent is a major shareholder, would launch its own mobile virtual network operator service next month.

The Ministry of Industry and Information Technology issued mobile virtual network operator licences in December and January that allowed mainland private companies to expand competition in domestic mobile services. Each operator will offer service in specific locations under its brand name, while leasing network capacity from one or all three incumbent operators - China Mobile, China Unicom and China Telecom.

Alibaba said HiChina would provide telecommunications packages and services that gave users "maximum flexibility" and transparency when it came to billing and the plans they could choose from. These packages will be sold through Alibaba's online retail platforms Taobao Marketplace and Tmall.com and can be paid for via Alipay, the company's online payment affiliate.

Interested consumers can start registering online with Alibaba next month for mobile-phone numbers starting with "170". No details have been released for JD.com's mobile virtual network operator initiative.

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Alibaba, Tencent take rivalry to mobile network services

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}E-commerce giant follows rival's move to launch 3G data and voice services through a subsidiary

E-commerce giant follows rival's move to launch 3G data and voice services through a subsidiary