It's a rare scene in China's telecom circles for senior officials of State-owned companies to jump to a private enterprise.

But VNOs usually offer sufficiently generous compensation to change that, said Kong Xiaoming, an analyst at Huatai Securities Co Ltd.

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"Senior managers in State-owned companies could earn much more in the private sector with their experience and their management and technological expertise," said Kong.

Private companies need all kinds of talent to get a start, from product design to marketing to corporate governance, Kong added.

Wei Xiaokang, the partner of Beijing-based headhunting firm OfferCome, has some explanations for the flow of talent. Money tops the list.

The average annual salary at the Beijing branch of China Mobile has stayed at 120,000 yuan ($19,725) to 130,000 yuan for the past decade, said Wei.

"This once-decent salary is no longer attractive at all, when they could secure at least a 30 percent increase from a private company."

When Li left China Unicom, his salary likely doubled, while Zhou, who joined Shenzhen-based Aisidi, is reportedly being paid 3 million yuan a year.

Kang Zhibin, executive president of Soshare Network Technology Co Ltd, a Beijing-based VNO, said his company will make the virtual network operation a strategic business in the near future.

"We are at the preparatory stage and have signed up more than 50 staff. But that is far from enough, so each of our departments is still soliciting talent," Kang said.

Senior managers from domestic telecom operators will bring in networking resources, as well as years of experience to the new VNOs, according to Wei.

"All those contributions will help VNOs grow fast, develop a clear business vision and win larger market shares," he said.

Huang Yufan contributed to this story.

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