China Telecom sells AI computing power like phone minutes
China's largest state-owned telecom group is launching nationwide token subscriptions starting at 1.40 euros a month. A paradigm shift from data volume to computing power is taking shape.
China Telecom, one of the country's three state-owned telecom giants, has rolled out commercial trial packages for AI tokens nationwide.
The subscriptions target developers and small businesses that need access to artificial intelligence without having to build their own infrastructure. Prices start at 39.9 yuan (around 5.50 euros) for 15 million tokens per month and go up to 299.9 yuan (about 41.50 euros) for 150 million tokens.
From selling data to selling computing power
The move marks a strategic realignment of China's telecommunications industry.
Instead of primarily selling data volume and bandwidth as before, providers are now positioning themselves as brokers of AI computing capacity. Tokens are the billing unit for AI models, measuring how much text or code a user can have processed.
China Telecom is leveraging its existing infrastructure of data centers and fiber-optic networks to offer these services nationwide. The company serves over 400 million mobile customers and operates one of the largest fixed-line networks in the world.
State infrastructure meets the AI boom
The initiative fits into Beijing's strategy of promoting artificial intelligence as a key technology while retaining control over critical digital infrastructure.
Unlike in Western markets, where cloud providers such as Amazon, Microsoft, or Google dominate AI access, China relies on its state-owned telecommunications companies as the distribution channel.
This significantly lowers the entry barrier for small and medium-sized businesses. A developer can access powerful language models for the price of a monthly cup of coffee. Which specific AI models are being offered is not clear from the available information.
What does this mean for Europe?
For Austrian and European companies, the move shows how fast China is moving here. Chinese startups and mid-sized firms are gaining affordable access to AI tools, which could strengthen their competitiveness.
China Telecom's token offensive is technologically clever and economically consistent. It makes AI accessible to millions and could accelerate innovation among China's digital small and mid-sized businesses.
Source: TechNode | Original Article