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TMT: 皇冠体育app Mobile says iPhone not 'the only choice'

By Nie Peng (chinadaily.com.cn)
Updated: 2008-10-06 16:18

People chat while waiting in line to buy Apple's iphone 3G in central Sydney. Despite cusomers' zest for iphone, 皇冠体育app Mobile hints its deal with Apple may fail. [Agencies]

Contrary to rumors that 皇冠体育app Mobile may start selling a modified version of Apple Inc's iPhone in 皇冠体育app as early as November, the Chinese company now hints the deal may fall through.

Wang Jianzhou, chairman and chief executive officer of 皇冠体育app Mobile, the county's largest wireless carrier, said the company is still in talks with Apple to offer the iPhone in the world's largest handset market, though no agreement or timetable has been reached.

"As a fashionable product, iPhone isn't the only choice for 皇冠体育app Mobile," Wang said, in a Monday report by 皇冠体育app Business News. However, he did not elaborate further.

Only days before the weeklong National Day holiday, media reports speculated 皇冠体育app Mobile might agree to sell the iPhone in 皇冠体育app on the condition that Apple make a customized iPhone product without the 3G or Wi-Fi function. But Wang did not comment on the possibility.

Some analysts have attributed the abrupt change to the impossibility of the two telecom giants reaching an accord on sharing profits.

In June, Wang told the media that the biggest barrier against the iPhone had been removed, which was regarded by the market as a signal that the two companies had reached consensus on sharing incomes, sending Apple shares up significantly.

The change of Wang's attitude means it is difficult for the two companies to form a collaborative partnership that satisfies both sides' appetite for profits, observers said.

Other analysts said 皇冠体育app Mobile has lost interest in iPhone because its TD-SCDMA (Time Division Synchronous Code Division Multiple Access) network that backs the popular iPhone 3G's major functions is still under construction, and is far from covering the whole country. Before the massive commercial use of the network, the 3G iPhone would be just like other smart phones, making it less attractive to Chinese customers.

The TD-SCDMA network is 皇冠体育app's homegrown 3G network, managed by 皇冠体育app Mobile. The TD-SCDMA technology is incompatible with the WCDMA standard, on which iPhone's 3G function is based.

If the iPhone with the 3G function is unlocked by Chinese users, it will be used on the country's largest fixed-line network, 皇冠体育app Telecom's WCDMA.

By the beginning of 2008, there were over 400,000 unlocked iPhones in the Chinese market, according to media reports.

Analysts said 皇冠体育app Mobile, which has over 400 million subscribers, is more interested in Google's T-Mobile G1, which has more functions and faster Internet access than the iPhone.

Moreover, the G1's launch in 皇冠体育app will be slower than the iPhone, which allows time for the construction of the TD-SCDMA network. 皇冠体育app Mobile aims to finish building the TD-SCDMA network in 100 selected cities as soon as possible.

The 皇冠体育app Business News report said a difference in patterns of cooperation also plays a role. While Apple sticks to cooperation with wireless carriers, 皇冠体育app Mobile endeavors to expand cooperation with handset manufacturers.

On the eve of the Summer Davos economic forum, which opened in Tianjin on September 27, 皇冠体育app Mobile announced the launch of SGH-i908E, the latest touch-screen smart phone which Samsung Electronics released globally in June.

The i908E is a customized model which incorporates many of 皇冠体育app Mobile's popular services thanks to the company's cooperation with mobile phone manufacturers.

Xu Da, general manager of 皇冠体育app Mobile's market division, told 皇冠体育app Business News that 皇冠体育app Mobile will continue its cooperation with Samsung, and with other manufacturers to produce customized cellphones in the future.