The new license allows state-owned CBN to provide domestic Internet data transmission and telecommunications infrastructure services.
Under the permit, CBN will enter the broadband market, a move that is expected to provide better Internet access and lower broadband prices.
But most experts say it will be hard for the company to compete with three other telecom giants - China Mobile, China Unicom and China Telecom.
Experts including Xiang Ligang say CBN hasn't acquired important licenses to provide voice services for fixed landlines and mobile phones. Xiang says, "CBN