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Battle begins over 3G market

By Wang Xing (China Daily)
Updated: 2009-10-19 10:04

The launching of third-generation services by China's leading cell phone operators this fall signals the start of a battle for top position in the world's largest mobile phone market.

3G networks enable mobile phone users to surf the Internet at faster speeds and use new services such as video calls and mobile television. For smaller rivals China Unicom and China Telecom, the emergence of China's 3G market is also an opportunity to challenge market leader China Mobile. [China Daily]

For smaller rivals China Unicom and China Telecom, the goal is to topple long-time leader China Mobile.

China's second-largest cell phone operator, China Unicom, officially launched its 3G services last month.

However, experts said that the China Mobile's lead is unlikely to change, at least in short term.

Although China Mobile was forced to develop China's homegrown 3G standard, TD-SCDMA, almost on its own, neither competitor seems ready to pose a serious threat, analysts said

China Unicom's 3G strategy apparently is taking a back seat to its widely publicized deal with Apple Inc to bring the US technology company's popular iPhone handset to China. Experts said the company has been slow to launch 3G services.

China Telecom, which launched its e-Surfing 3G brand late last year, is technically incompatible with most mobile phones used in China.

China Telecom launched a huge marketing campaign during the past few months to promote a series of its 3G services such as mobile email, Internet surfing and video calls.

"From the publicized strategies of the major Chinese telecom operators, I don't think China Mobile's dominant position will be challenged in the near future," said Wang Yuquan, a senior consultant at the research firm Frost & Sullivan.

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Wang said neither China Unicom nor China Telecom has focused on the core value of 3G services.

As a technology that supports faster data transmission speeds, 3G networks enable mobile phone users to search the Internet at faster speeds and use 3G services such as video calls and mobile TV.

The Chinese telecom operators hope the new service becomes a fast-growing source of revenue, since traditional cell phone income has declined in recent years due to market saturation and increased competition.

A head start

In January, the Chinese government issued 3G licenses to its major telecom operators.

To even the playing field between China Mobile and its smaller competitors, the government ordered China Mobile to adopt the country's home grown 3G standard, TD-SCDMA.

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