UCLOUDLINK Receives Approval for Pilot Operations of Value-Added Telecoms Services from MIIT
Rhea-AI Summary
UCLOUDLINK (NASDAQ: UCL) has received approval from China's Ministry of Industry and Information Technology (MIIT) for pilot operations of value-added telecommunications services. The company is among the first batch of 13 foreign-invested companies, alongside major corporations like Deutsche Telekom, Siemens, Airbus, and HSBC, to receive this authorization.
The approval enables UCLOUDLINK to provide value-added telecommunications services including internet access and information services in China. This development is expected to:
- Offer Chinese consumers more diverse telecom services and products
- Stimulate market vitality
- Enhance service quality and standards
- Better serve growing digital lifestyle needs
The approval represents MIIT's confidence in UCLOUDLINK's technological capabilities and business model, positioning the company for business expansion and portfolio enrichment in China's telecommunications market, which currently hosts over 2,400 foreign-invested enterprises.
Positive
- Received strategic MIIT approval for value-added telecoms services in China
- Selected among first batch of 13 foreign companies, indicating competitive advantage
- New authorization enables business expansion and portfolio diversification
- Access to China's vast telecommunications market
Negative
- None.
News Market Reaction – UCL
On the day this news was published, UCL declined 6.62%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
HONG KONG, March 07, 2025 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (“UCLOUDLINK” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, today announced that it was one of the first batch of 13 foreign-invested companies to receive approval for pilot operations of value-added telecommunications services by China’s Ministry of Industry and Information Technology (the “MIIT”). With the approval, UCLOUDLINK will be permitted to engage in value-added telecommunications services such as internet access and information services in China.
The 13 foreign-invested companies approved for this pilot program are predominantly affiliates of well-known multinational corporations, including Deutsche Telekom, Siemens, Airbus, and HSBC. Companies that received approval are expected to provide Chinese consumers with a more diverse range of telecom services and products to stimulate market vitality, enhance service quality and standards, and better meet the growing digital lifestyle needs of the Chinese public.
Mr. Chaohui Chen, Director and Chief Executive Officer of UCLOUDLINK, said, “Being included in the first batch of foreign-invested companies to receive approval from the MIIT underscores the MIIT’s confidence in our innovative technological capabilities and business model to service the growing digital lifestyle needs of the public - a direct reflection of our slogan, “Better Connection Empowers Better Life”. This approval will create significant opportunities for us to further expand our business lines and enrich our product portfolio. We will capitalize on this going forward by actively exploring new business models, developing value-added telecom services, and contribute to the industry’s high-quality development.”
As of the end of February 2025, China had over 2,400 foreign-invested telecommunications enterprises.
About UCLOUDLINK GROUP INC.
UCLOUDLINK is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing.
For more information, please contact:
UCLOUDLINK GROUP INC.
Daniel Gao
Tel: +852-2180-6111
E-mail: ir@ucloudlink.com
Investor Relations:
Christensen Advisory
Christian Arnell, Managing Director
Tel: +852-2117-0861
E-mail: ucloudlink@christensencomms.com
FAQ
What does UCLOUDLINK's MIIT approval mean for its operations in China?
Which other major companies received MIIT approval alongside UCLOUDLINK?
How many foreign-invested telecommunications enterprises operate in China as of February 2025?
What types of services will UCLOUDLINK (UCL) be permitted to offer under the new MIIT approval?
