The mid-August rollout in Shanghai comes about six months after the company's test launch of M-Zone in Guangzhou, where it has signed up an estimated 750,000 subscribers.
M-Zone joins China Mobile's four other brands, including GoTone and E-Tone, which are targeted at business and older users and incorporate services such as long-distance calls.
With M-Zone targeted at the 15 to 24 age segment, the brand's product offers exclude IDD but boast features such as SMS and games and music downloads favoured by the youth market.
Another difference lies in the advertising used by the two cities. In contrast to Guangzhou, advertising for the Shanghai rollout is copy-driven.
This came after focus groups in the city described the cartoon icon used in Guangzhou as childish.
"We positioned M-Zone as a sort of a club, where subscribers have their own special language and behaviour, said Ogilvy & Mather Shanghai general manager, Michael Lee. O&M created the Shanghai campaign after winning the account alongside MindShare in a full service pitch.
Executions across television, print and outdoor featured slang and expressions favoured by Shanghai's youth, Lee added.
For instance, one execution shows the numbers 07734, which reads as hello when a phone is turned upside down, a common greeting among young SMS users.
Along with advertising, the launch will be supported by a series of events, including activities in schools, a website and an SMS campaign to build awareness for the brand.