China Issues Licenses to Private Companies to Resell Mobile Services:

China has made the long expected announcement that will permit private companies to resell mobile phone services in the country through MVNO agreements.

The country's Industry and Information Technology Ministry (MIIT) granted licenses to 11 companies to start trials of reselling selected mobile services.

The ministry described the move as an important part of restructuring and reform in the telecom industry.

"This will help competition and innovation while offering more choices and better services to consumers," the statement said.

In a slight reversal of how most countries operate though, the license applicants have to secure a resale agreement with one of the mobile networks, and then apply for a license.

Telecom tariffs may go up every year: Vodafone MD:

India's second largest telecom operator Vodafone expects phone call and other mobile services rates to go up every year, indicating that low tariff regime may not be sustainable any longer for the industry.

"We have lower tariffs for 18 years against inflation of 8-9 per cent per year. Now, can you do that forever? No you can't," Vodafone India Managing Director and Chief Executive Officer Marten Pieters said in an interview.

"So the point has come where lowest has been seen, we will have to increase our tariffs every year depending on cost levels," he said.

He said that like everyone else, the telecom industry too has to increase the prices.

Last month, the company increased 2G mobile Internet rates along with two other players,  Bharti Airtel and Idea Cellular, in the range of 25-30 per cent.

Peiters said that going forward 2G data rates and 3G data rates will be at same level indicating a further hike in 2G mobile Internet rates.

"We started 6-7 times high tariff rate when we opened up 3G network. It is now back to 1.5 to 1.6 times of 2G data rates. It over time will come together. But it can't come over time just by lowering 3G tariff, it needs to also see increase of 2G tariffs. Once it is equal, it doesn't matter to customer anymore," Pieters said.