What Is an ICP License? A Comprehensive Analysis in One Article!

What Exactly Is a Value-Added Telecommunications License? Everything You Need to Know

In today’s fast-evolving digital era, the internet has become an essential part of both daily life and professional operations. Whether it's for communication, online shopping, business operations, or remote work, all these activities rely heavily on telecommunications infrastructure. Within the broader telecom industry, the term value-added telecommunications license frequently appears in news reports and policy documents-especially when new internet companies or platform-based businesses obtain such licenses, drawing widespread attention.

So, what exactly is a value-added telecommunications license? What does it mean for businesses and users? And why are more and more companies prioritizing this permit? This article provides a comprehensive explanation.

What Is a Value-Added Telecommunications License?

Simply put, a value-added telecommunications license is a type of business permit issued by national telecom regulators, such as China's Ministry of Industry and Information Technology MIIT. It allows companies to offer communication services that go beyond basic telecom offerings. These value-added services typically include, but are not limited to information services, call centers, voice communications, SMS/MMS platforms, virtual operators, and data processing or storage.

According to the Regulations on Telecommunications of the People’s Republic of China and the Telecom Business Classification Catalog, telecom services in China are divided into two major categories basic telecom services and value-added telecom services. Basic telecom services are mainly operated by China’s three major carriers-China Mobile, China Telecom, and China Unicom-while value-added telecom services are open to a broader range of market participants.

Major Types of Value-Added Telecommunications Licenses

Currently, the most common types of value-added telecom licenses include

1. ICP Filing and ICP License

An ICP filing is a basic requirement for launching a website, while the ICP License Internet Content Provider License is mandatory for websites offering paid information services, such as membership features, advertisements, or charging services.

2. EDI License

The EDI Electronic Data Interchange License is required for businesses involved in online transaction data exchange, especially B2B and B2C platforms like e-commerce and supply chain management systems.

3. ISP License

The ISP Internet Service Provider License is for companies offering broadband access or network hosting services. While traditionally held by telecom providers, more tech companies are applying for this license with the rise of 5G and edge computing.

4. Call Center License

This license is essential for companies operating customer service systems, telemarketing platforms, or AI voice bots, ensuring they legally use telephone lines for commercial calls.

5. SP License

The SP Service Provider License is used to offer value-added mobile services, such as SMS subscriptions, ring tones, and mobile games.

6. MVNO License Virtual Operator

This license allows companies to lease network resources from base carriers and offer mobile services under their own brand. In recent years, major tech firms and internet platforms have increasingly entered this space.

Why Are Companies Paying More Attention to Value-Added Telecom Licenses?

In the past, many startups overlooked the need to apply for these licenses in their early stages, often leading to service suspensions or fines during regulatory reviews. As government oversight of the internet industry has intensified-particularly in areas like data security and personal information protection-laws such as the Cybersecurity Law, Data Security Law, and Personal Information Protection Law have made compliance a top priority for businesses.

For example, in early 2025, a popular short-video platform was summoned for rectification due to the lack of a proper value-added telecom license. Similarly, a startup focused on AI-based voice customer service was ordered to halt operations mid-year for lacking a call center license. These cases clearly illustrate that without proper licensing, even the best business models can struggle to survive.

Holding a value-added telecom license also enhances a company’s credibility, boosting confidence among partners and investors. During fundraising rounds, compliance with telecom regulations often becomes a key part of investor due diligence.

Recent Developments Streamlined Processes and Faster Approvals

Interestingly, while regulations are tightening, the government has also been improving the licensing process to encourage more market participation. Since the second half of 2025, MIIT has repeatedly emphasized the need to accelerate market-oriented reforms in the value-added telecom sector, expanding pilot programs, simplifying application materials, and speeding up approval timelines.

According to data from MIIT’s official website, by the third quarter of 2025, over 200,000 value-added telecom licenses had been issued nationwide, representing an 18% year-on-year increase. Beijing, Shanghai, and Shenzhen continue to lead in the number of approved companies, highlighting their dominance in the digital economy.

Moreover, companies outside the traditional telecom industry are now actively pursuing these licenses. A leading electric vehicle manufacturer recently announced it is applying for a call center license and an EDI license to support its connected car platform. Similarly, a health-focused internet platform secured an ICP License to ensure compliance for its online medical consultation and health data management services.

How Does This Affect Ordinary Users?

While the concept of telecom licensing may seem distant to regular users, it has a direct impact on their experience. On one hand, these licenses ensure that the services they use come from legitimate and regulated platforms, reducing risks like fraud, unauthorized charges, and nuisance calls. On the other hand, the licensing system promotes fair market competition, allowing high-quality companies to stand out.

As more companies obtain these licenses, competition intensifies, which in turn drives improvements in service quality. For example, licensed call centers can legally access telecom networks, offering users more stable and clear communication. On e-commerce platforms, businesses with EDI licenses can process orders and coordinate logistics more efficiently.

Conclusion

A value-added telecommunications license is not just a legal requirement-it is a crucial indicator of a company’s overall strength and compliance standards. In today’s booming digital economy, those who embrace regulatory compliance are better positioned to gain a competitive edge.

If you are currently working in or planning to enter industries such as internet services, telecommunications, e-commerce, or artificial intelligence, understanding and applying for the necessary value-added telecom licenses early on is an essential step toward long-term success.