China Telecom Rolls Out AI Token Plans From Just 9.9 Yuan

China Telecom has launched trial commercial AI token subscription plans starting at just 9.9 yuan ($1.40) per month, a strategic pivot that packages AI model access like mobile data and accelerates the shift from selling connectivity to computing power.

The move reflects a broader push by Chinese telecom giants to capitalize on surging demand for AI services. "The plans mark a shift in how China's telecom sector hopes to profit from generative AI," China Daily reported, framing it as a race to monetize the country's AI boom.

The new offerings include tiered plans for different users. For individuals, monthly prices range from 9.9 yuan for 10 million tokens to 49.9 yuan for 80 million tokens. For developers and small businesses, plans start at 39.9 yuan ($5.50) for 15 million tokens and go up to 299.9 yuan ($41.50) for 150 million tokens, bundling optional services like enhanced broadband upload speeds and security.

This initiative positions China Telecom (0728.HK) as a key player in the country's AI infrastructure market, creating a significant new revenue stream by monetizing its vast customer base and directly competing with established cloud service providers. The "utility" pricing model could lower the barrier to entry for AI adoption among individuals and small enterprises.

Telcos Turn Tokens Into a Utility

The launch is part of a wider trend among China's major carriers. Just two days prior, Shanghai Telecom, a China Telecom subsidiary, began its own token-based operations by giving subscribers a free quota of 25 million tokens. Tokens serve as the basic units for processing text, images, and commands in generative AI systems, effectively acting as a currency for AI computing usage.

Rival China Mobile has also entered the fray in Shanghai, launching a universal token service that allows customers to use various AI platforms under a single account and pay via their phone bill. In a partnership with Tencent Holdings, China Mobile introduced an AI-native workspace, offering 400,000 tokens for just 1 yuan and allowing users to switch between different large language models under a unified pricing structure.

This strategy sees state-owned enterprises attempting to transform access to computing power and AI models into a metered, utility-like service, mirroring the successful mobile data package model. By bundling AI access with their core connectivity products, these telecom firms are building a new, integrated ecosystem to capture value from the country's significant investments in AI infrastructure.

For investors, this marks the emergence of a new, potentially high-growth business segment for China's traditionally stable telecom operators. While China Telecom's stock last traded up 4.89% at HKD5.58, the long-term financial impact will depend on customer adoption rates and the competitive response from both other telcos and established cloud players like Alibaba Cloud and Baidu AI Cloud. The move signals a clear intent to compete directly for the AI-as-a-service market.

This article is for informational purposes only and does not constitute investment advice.