Chinese mobile carriers are racing to sell AI token data plans.

On May 17th, China Telecom announced a new pricing plan, but instead of being based on megabytes or gigabytes, the carrier is using a token-based system, targeting customers who utilize AI models, from ordinary users to developers and businesses.

The consumer packages are designed for everyday tasks, starting at 9.9 yuan (US$1.45) per month with 10 million tokens, progressively increasing in price and capacity, up to 49.9 yuan (US$7.30) per month with 80 million tokens. Enterprise packages, supporting AI agent programming and deployment, range from 39.9 yuan (US$5.85) to 299.9 yuan (US$44), with token limits of 15-250 million.

Tokens are the basic unit of AI, consisting of text, code, or data that an artificial intelligence model processes or generates. Just as streaming video consumes megabytes, asking an AI chatbot to write an essay, debug code, or create an image also consumes tokens. One token is equivalent to about four characters, or approximately three-quarters of a word, while one million tokens is equivalent to the length of the entire Harry Potter series. According to Global Times , in languages like Chinese, a single character can be divided into 2-3 tokens. Processing a high-resolution image can cost an AI model between 200 and over 1,000 tokens.

China Telecom is integrating its token packages with its proprietary artificial intelligence model called TeleChat, along with several third-party systems such as Zhipu AI GLM-5 and DeepSeek-V3.2, offering numerous additional options to enhance connectivity and network security. “We are making token business the focus of our strategy, driving the shift from data connectivity to smart services,” China Telecom Chairman Ke Ruiwen stated on the company website.

Two other major Chinese mobile carriers, China Unicom and China Mobile, are also seeking to convert tokens into pricing units to sell to customers, similar to what they did with mobile data. However, instead of a nationwide rollout, both are testing it in certain regions. For example, China Unicom’s Shanghai branch introduced a new token-based pricing plan with gifts last weekend. From April, China Mobile rolled out the plan in several provinces, such as offering 7.5 million tokens for 15 yuan (US$2.20) per month in Jilin province.

Earlier this month, Shanghai Telecom also launched a token-based AI computing service package, which includes a pay-per-use plan where one yuan buys 250,000 points, equivalent to 250,000 input tokens on the Kimi-K2.5 model. Users can access more than 30 popular AI models through a standard application programming interface and pay via their phone bill.

Shanghai Unicom also introduced a token service specifically for one-person companies (OPCs) through its Token Plan, Coding Plan, which was initially available for free trial.

According to SCMP , while telecommunications companies act as “aggregaters,” selling access to various AI models, the company that “creates” the AI model primarily provides the service exclusively.

According to China Daily , the companies’ strategy aligns with the booming demand for tokens in China. According to data from the National Bureau of Statistics of China in March, more than 140 trillion tokens were used daily in the country, a 1,000-fold increase compared to the beginning of 2024. The report states that the rising cost of AI models is beginning to put pressure on developers and businesses. The issue is reminiscent of the early days of mobile internet, when slow speeds and high fees later gave way to cheaper and more accessible mobile data after the deployment of 4G and 5G networks.

Experts believe that the trend of selling AI token packages is emerging in the context of the rapidly growing Chinese AI market following the success of domestic models. The popularity of chatbots such as Tencent Yuanbao, Alibaba Qwen, and ByteDance’s Doubao has led to a surge in demand for AI tokens, from chatting and coding to creating images and videos.

Many Chinese carriers are seeking their “next revenue stream” amid a slowing mobile data market. Research firm Omdia suggests this is a shift from “selling internet connectivity” to “selling AI capabilities.” Some carriers are even combining AI tokens with network connectivity and security layers into bundled service packages. According to Reuters , Chinese technology companies are also accelerating investment in domestic AI infrastructure and chips to meet the growing demand for tokens.

This model is considered to have many similarities to how GitHub Copilot or OpenAI deploy “AI credit,” but bringing it down to the mass telecommunications level. According to Hello China Tech , this could change the role of network operators in the future, becoming “AI distribution centers” for ordinary users instead of just providing internet services as before.

Bao Lam compilation

• Chinese company uses AI to create nearly 500 short films per day.
• The ‘healing technology’ trend in China.
• How Chinese tech companies are turning AI into profit.
• The battle between two AI tools in the Chinese workplace.