China's Telecom Giants Race to Build AI Token Economy

China's telecom industry is undergoing its most significant transformation since the shift from voice minutes to data monetization. The country's three telecom giants—China Telecom, China Mobile, and China Unicom—are collectively moving into the AI token economy, signaling a fundamental change in how carriers generate revenue and deliver value to customers.

This strategic pivot comes as telecom operators seek new growth engines beyond traditional traffic and data packages. The moves represent an acknowledgment that the future of computing and AI services will be tokenized, with consumption measured in digital tokens rather than gigabytes of data.

China Telecom Takes Early Lead in Token Economy

China Telecom has moved first to establish its position in this emerging market. On Monday, the carrier announced a range of trial commercial token packages targeting both consumer and business markets.

For individual consumers and households, China Telecom offers three tiers:

• 9.9 yuan ($1.40) per month for 10 million tokens
• 29.9 yuan ($4.20) per month for 40 million tokens
• 49.9 yuan ($6.90) per month for 80 million tokens

These packages include integrated token, connectivity, and security services, providing a comprehensive offering for everyday users.

For developers and small businesses, China Telecom has introduced professional-tier plans ranging from 39.9 yuan ($5.60) to 299.9 yuan ($42.00) per month, with token allowances reaching as high as 150 million. This higher tier supports more intensive AI development and application needs.

Simultaneously, China Telecom launched the China Telecom Token Ecosystem Alliance, bringing together partners across key parts of the token value chain, including production and distribution. This alliance suggests the carrier aims to control not just token distribution but also the broader ecosystem that supports token-based services.

China Mobile's Regional Pilot Strategy

China Mobile is taking a different approach, focusing on regional pilots backed by group-level coordination. The carrier is testing its token economy strategy in specific markets before broader deployment.

In Shanghai, China Mobile partnered with Tencent to launch an AI-native workspace platform that offers 400,000 tokens for just 1 yuan ($0.14), with payments supported through mobile billing. This extremely low entry point suggests China Mobile aims to rapidly build user adoption and usage patterns.

In Beijing, the carrier offers entry-level computing power add-on packages starting at 5.99 yuan ($0.84), while a monthly package priced at 24.99 yuan ($3.50) includes 10 million tokens. This tiered approach allows users to scale their token consumption based on needs.

At the 2026 Mobile Cloud Conference held from May 7 to 9, China Mobile unveiled its New Computing Power Momentum initiative and formed a token operations ecosystem alliance with seven major partners, including Tencent, Alibaba, and Huawei. The platform integrates around 300 AI models, and China Mobile claims that centralized operations could help reduce per-token costs by approximately 30%. This cost reduction claim highlights one potential advantage of telecom carriers' large-scale infrastructure in token-based services.

China Unicom Focuses on AI-Driven Scenarios

China Unicom is taking a third approach, focusing on emerging AI-driven usage scenarios rather than broad token distribution. The carrier appears to be targeting specific use cases where token-based services can deliver immediate value.

In Shanghai, China Unicom is offering OPC (one-person company) users a free trial allocation of 30 million tokens, effectively removing barriers for small entrepreneurs and freelancers to experiment with AI services. The carrier has also introduced bundled packages combining tokens, AI cloud desktops, and its Uniclaw platform, creating integrated solutions for specific business needs.

In Hubei province, China Unicom rolled out three token-tier packages ranging from 6 million to 18 million tokens, priced between 7.5 yuan ($1.05) and 359 yuan ($50.30). This wide price range suggests the carrier is targeting both individual users and larger businesses in the region.

Market Context: Explosive Token Growth

Behind these strategic moves lies an explosive surge in token consumption. According to data from China's National Data Administration, average daily token usage in China has jumped from 100 billion at the start of 2024 to 140 trillion by March 2026. This represents an increase of more than 1,000 times in just two years, highlighting the rapid adoption of token-based AI services.

This growth trajectory suggests that token-based services are not merely a niche offering but represent the future of AI consumption. The three major telecom operators recognize this shift and are positioning themselves to capture the value that will flow through these new consumption models.

Strategic Implications

China's three major telecom operators are accelerating their transformation from traditional connectivity providers into service platforms for the token economy. This shift represents a fundamental change in business models, moving from selling bandwidth to facilitating access to computational resources and AI capabilities.

Token operations are rapidly replacing traffic monetization as the industry's new strategic focus. While the telecom industry has long competed on price and network coverage, the emerging token economy introduces new dimensions of competition: token pricing, ecosystem partnerships, AI model integration, and specialized use case development.

The trillion-yuan market for token-based services is still in its early stages, with competition just beginning. The strategic moves by China Telecom, China Mobile, and China Unicom suggest that the winners in this new economy will be those who can effectively combine network infrastructure, token distribution mechanisms, and AI service ecosystems.

As these three carriers move forward with their token strategies, we can expect to see continued innovation in pricing models, partnerships, and service offerings. The transition to token-based services will likely reshape the entire telecommunications industry, creating new opportunities and challenges for all market participants.