China's telecom giants launch AI token packages

(ECNS) -- China's three major telecom operators — China Mobile, China Unicom and China Telecom — have introduced affordable token-based subscription packages for individuals, government agencies and businesses, as competition in AI computing services heats up.

In the AI era, "token" has become a key term. Tokens are the smallest measurable unit of AI services, representing the computing power consumed when users input prompts, generate conversations, recognize images or produce other outputs. Roughly, one Chinese character equals one to two tokens, while an English word typically equals one.

For casual AI users, asking questions, chatting with bots or generating short texts consumes relatively a few tokens, which many platforms are willing to provide free of charge. But for heavy users generating large volumes of images and videos, or engaging in compute-intensive AI applications, token consumption can rise exponentially.

Facing surging market demand, China's telecom giants see computing-power services as a strategic opportunity to move beyond the limitations of traditional connectivity businesses and build new growth engines in the AI era.

China's telecom giants see surging demand for computing power as a strategic opportunity to move beyond traditional connectivity and build new growth engines in the AI era. With nationwide backbone networks, extensive computing infrastructure and integrated cloud-network capabilities, they are well-positioned to manage token-based services. Analysts say the shift marks a transformation from "traffic providers" to "computing service providers," creating a business chain where AI agents consume tokens and token demand drives computing power.

Although package structures differ among operators, pricing remains relatively affordable. For less than 10 yuan (about $1.40), households can gain access to top-tier large AI models, while around 40 yuan may provide small and micro businesses with access to a full AI development platform.

Observers say the emerging computing expressway could accelerate AI adoption across industries and daily life, unlocking new consumer demand and industrial growth momentum.

(By Gong Weiwei)