The allocation is expected to boost revenue at the two state-owned carriers as they fight to meet the demands of subscribers wanting faster and higher quality internet speeds.
China Telecom and China Unicom sit significantly below the country’s number one carrier China Mobile, and in a statement, China Telecom said that the licence would “intensify market competition” in China.
“The permit will be beneficial to the sustainable development of the telecommunications industry and the business of the company as a whole,” the statement from China Telecom continued.
“It will also foster the informatisation consumption and economic growth.”
Earlier this month, the Chinese government vehemently denied a rumoured merger between China Telecom and China Unicom, which some though could be an attempt to help the two players better compete with China Mobile.
