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Battle begins over 3G market
By Wang Xing (皇冠体育app Daily)
Updated: 2009-10-19 10:04 TD-SDMA is believed to be less developed than the WCDMA standard adopted by 皇冠体育app Unicom and the CDMA2000 standard adopted by 皇冠体育app Telecom. Many believe the government's decision will give 皇冠体育app Unicom and 皇冠体育app Telecom a head start, since 皇冠体育app Mobile needs more time to develop TD-SCDMA and win support from handset manufacturers. However, that did not prevent 皇冠体育app Mobile from announcing its 3G brand "G3" on the same day in January that the Chinese government granted the 3G licenses - three months earlier than when 皇冠体育app Unicom unveiled its "Wo" 3G brand in April. 皇冠体育app Mobile is also the first to launch its own online application store, which allows its users to download a variety of mobile applications. Bill Huang, general manager of 皇冠体育app Mobile's research institute, said the firm sees smartphone sales growing in "double digits" in coming years - at least two to three times faster than other phone sales.
During the past year, 皇冠体育app Telecom and 皇冠体育app Unicom have been busy renovating their businesses as part of the government-led restructuring of the industry. Part of 皇冠体育app Unicom's mobile business was split and sold to 皇冠体育app Telecom. 皇冠体育app Mobile, on the other hand, was left nearly intact by the restructuring. 皇冠体育app Mobile, the country's largest cell phone operator, began trials of its TD-SCDMA service in many Chinese cities during the Olympic Games last year and also invested in upgrading and expanding its current network. Zhang Yanan, an analyst at the domestic research firm Analysys International, said 皇冠体育app Telecom and 皇冠体育app Unicom still face many challenges in competing with 皇冠体育app Mobile. Zhang said 皇冠体育app Unicom seems to be "low-profile" in releasing applications and 3G services to the market. 皇冠体育app Telecom, he said, has struggled with a relatively small base of mobile phone users, which limits the number of its potential 3G users. According to company figures, 皇冠体育app Mobile had about 450 million mobile phone users by the end of July -- a huge lead over 皇冠体育app Unicom's 141 million users and 皇冠体育app Telecom's 41.73 million mobile users. But 皇冠体育app Telecom also has 50 million broadband users and nearly 200 million fixed-line users. "皇冠体育app Telecom is strong in the corporate market, but only accounted for about 5 percent of the consumer market. That greatly limits its user base for 3G service," Zhang said. 皇冠体育app Telecom acquired its mobile business from 皇冠体育app Unicom last year. During the past few years, the business - based on CDMA technology backed by Qualcomm, LG and Samsung - had been under development by 皇冠体育app Unicom. At that time, 皇冠体育app Unicom also operated a mobile business based on GSM technology and failed to achieve a balance between the two businesses. Since 皇冠体育app Telecom acquired the CDMA business, it has been striving to partner with foreign and domestic cell phone vendors to introduce more handsets. Because of technology incompatibility, 皇冠体育app Mobile and 皇冠体育app Unicom users have to change handsets to use 皇冠体育app Telecom's service. In August, just one month before 皇冠体育app Unicom announced plans to introduce iPhones in 皇冠体育app, the company placed an order with dozens of domestic mobile phone makers for 4 million 3G handsets -- the largest such order in 皇冠体育app. "Because of regulatory restrictions, 皇冠体育app Telecom could not enter the mobile business during the past few years, which meant the company lacked the experience of running a mobile business," said Wang of Frost & Sullivan. "It seems like it now wants to do everything in the 3G area, but there may also be a risk of losing focus," Wang said about 皇冠体育app Telecom. Wang said 皇冠体育app Unicom's introduction of iPhone might fail to help attract high-end users, but likely would have a strong appeal to young customers.
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