China Telecom has introduced a new AI token pricing system nationwide, marking a significant shift in how telecom companies bill customers by quantifying AI processing and generation rather than traditional cellular data usage.
- AI tokens replace gigabytes as billing units for telecom services
- Token packages range from low-cost consumer plans to high-volume business subscriptions
- China logs over 140 trillion daily token calls, reflecting surging AI usage
What happened
China Telecom unveiled nationwide AI token-based pricing packages on its app, offering plans for casual users, developers, and enterprises. Consumer packages start at 9.9 yuan per month for 10 million tokens, with business plans scaling to 299.9 yuan for 250 million tokens. These tokens represent units of text, code, or data processed or generated by AI models.
Alongside China Telecom, China Unicom's Shanghai branch and China Mobile in selected provinces have also launched token plans. This indicates a nationwide telecom industry pivot from charging for data volume to charging for AI interaction volume, bundled with proprietary and third-party AI models, including TeleChat, Zhipu AI, and DeepSeek.
Why it matters
The introduction of AI tokens as a billing mechanism reflects the rapid expansion and monetization of AI technologies within China's digital infrastructure. Telecom operators are capitalizing on massive AI usage growth, with daily token calls reaching over 140 trillion in March 2026, a 1,000-fold increase since early 2024.
This shift repositions telecom companies as key facilitators and aggregators of AI services rather than mere data carriers. It also establishes a standardized consumption metric tailored to AI workloads, enabling differentiated pricing strategies for diverse customer segments from everyday users to enterprises deploying advanced AI applications.
What to watch next
Observers should monitor how token pricing evolves across different regions and carriers in China, as well as how effectively these plans support developer innovation and business AI deployment. Further integration of AI tokens into network services, including enhanced cybersecurity and connectivity add-ons, could become industry norms.
Internationally, this model may influence telecom operators elsewhere considering AI monetization strategies. The success and customer reception of token plans could also drive competition among AI model providers and independent developers, who are already offering their own token-based subscriptions and pricing tiers.