"Introducing more virtual carriers will encourage competition in the telecom industry and diversify services and lower charges," Beijing News reported, citing Liu Duo, vice-president of the China Academy of Telecommunication Research of the Ministry of Industry and Information Technology.

Overseas companies will be able to provide services to mobile subscribers in China by hiring infrastructure from the country's big three telecom operators.

Liu said the ministry does not have a timetable for the new policy.

In December, the ministry issued virtual telecom licenses to 11 Chinese companies.

The country will have 50 million subscribers who use services provided by virtual carriers by 2015, the newspaper said.