China Mobile's Mobile Market site goes live, sort of
[Via PC World]
ChinaMobile posts
China Mobile officially kicked off commercial 3G services on China's homegrown TD-SCDMA standard way back in January of this year and it's sparing no expense to build it out, but so far, only 3 percent of new subscribers -- that is, those that could easily get a 3G line and hardware if they wanted to -- are opting for the service. It'd be totally cool if 3 percent of China Mobile's total subscriber base were on 3G, but in reality, only about three-quarters of a million folks were signed up by the end of May -- and when you consider that there are nearly half a billion subscribers on the carrier, that's a drop in the bucket. Part of the problem could simply be that TD-SCDMA is unique to China, which limits hardware selection; its competitors are deploying HSPA and EV-DO networks, which may have a better chance of broad acceptance. Either that, or Chinese just hate fast wireless, and we're doubting that.
China Mobile may or may not have lost out to China Unicom in the bid to (officially) bring the iPhone to the most populous nation in the world, but it seems the provider might still have an ace up its sleeve -- Dell. The Texas-based company, which may or may not be actually making smartphones, is said by analyst Zhang Jun to be in final negotiations with the Hong Kong-based provider to ship those actual devices to Asian shores, devices that were supposedly shunned by providers elsewhere on the globe. Talk of Dell's handsets running Android seems to fit in nicely with China Mobile's requirements to use its custom-baked operating system (which has a crunchy Android filling), as does Dell's apparent upcoming release of a TD-SCDMA-packing Mini 10 to Chinese netbookers. So is this a match made in heaven or an analyst daydream? Sadly we won't know until August, when this supposed deal will supposedly be done. Something tells us Unicom and Apple will still be debating by then, too.

And here we go again -- new CEO, same message. Just under a year after ex-chief Arun Sarin urged the industry to rally around LTE, the new bigwig (that's Mr. Vittorio Colao to you) is coming forward with even zanier ideas. In a recent interview with Financial Times, Colao asserted that collaboration between China Mobile, Vodafone and Verizon Wireless around LTE could create an "unbeatable" alliance. More specifically, he noted that the trio could "work more closely... in the management of customers, procurement and service creation," which in some courtrooms may be misconstrued as collusion. All kidding aside (maybe), this master plan makes more sense when you realize that Vodafone owns a 3.2 percent stake in China Mobile and is already involved in VZW via a joint venture. Still, just because Microsoft and Apple could join forces to create an unbeatable operating system factory doesn't mean that laws would allow it.
Building a wireless network is never cheap -- but when you take into account the fact that you have to cover a huge landmass that's home to well over a billion souls... well, you get the picture. China Mobile has announced that it intends to sink some 58.8 billion yuan ($8.6 billion) this year alone into building out its TD-SCDMA-based 3G network to cover 238 cities across China with roughly 60,000 base stations. In the 3G race, they'll be going up against China Unicom and China Telecom who'll be operating more world-friendly WCDMA and EV-DO networks, which raises an interesting question: will TD-SCDMA equipment be cheaper thanks to royalty loopholes, or more expensive because there's no global scale of economy?
Just last April, we heard that China Mobile had acquired more subscribers than the entire population of the United States of America. 15 months later, it has doubled up on that figure. Yep, China Mobile has just broken the 600 million subscriber mark as the country as a whole added 53.5 million new wireless users from January to June. Consequently, fixed-line customers fell by 9.3 million to 356 million during the same window of time. So, what's the over / under on months before the carrier breaks the big 1 billion?





