Mobile Internet will be the killer application of 3G. For the mobile Internet, the business model of telecom operators has to evolve to Teleco2.0. IP Multimedia Subsystem (IMS ) will be used mainly for VIP and enterprise customers. Mass-oriented entertainment and new media services will be based on the Intelligent Node Overlay Node (INON )/Distributed Service Network (DSN ). The core network will be flat, with an evolution route from Internet High Speed Packet Access (I-HSPA ) to System Architecture Evolution (SAE ), and even the Internet can be used as the core network. The low-cost mobile phone can be accessed to HTTP Internet by using “client end software + portal”model with cloud computing. Flat rate will be the only fee model to be accepted by customers, and cheap and reasonable prices will contribute to the development of mobile Internet.