In the beginning of Year 2009,China government released three 3G licenses to main mobile operators-China Mobile,China Unicom and China Telecom.
China Unicom will give out its 3G network with WCDMA technology which is a mature and popular technology widely used in Europe.Nokia,Sony Ericsson and Samsung have a very entire production line and so many Chinese people could get WCDMA cell phones in local shops.Thus,China Unicom has quite a number of potential users and that is a very good advantage.Except that,I think WCDMA cell phones will have most choices in the market and this will attract a lot of youngsters.Therefore,China Unicom surely has no excuse to lose this battle.
China Telecom is a new guy in mobile communication industry.It’s got the property of CDMA network from China Unicom and so the 3G network(CDMA2000) will upgrade from it.The technology is adopted in Japan,Korea and USA.Lesser mobile phone manufactories make it lesser competitive to WCDMA network.However,not like others buying and setting up new devices,China Telecom will only need to upgrade its current network so that it will be quite economical and could expand its network much faster.Therefore,China Telecom will stay in between the battle and get a balance most probably.
China Mobile,finally,can’t be so optimistic.It uses China-local-developed TD-SCDMA technology.Till now,I still heard it is not as stable as those two I mentioned just now.Unfortunately,there’s no foreign mobile giant jumping into the product market yet.This bad situation will certainly reduce the buying demands from consumers because of lack of choices of products.Some more,if the network really doesn’t perform well,that will be a dead end in the battle.Then it will lose the position of leadership in current market too.
The three operators will totally spend RMB 40 billion of investments (US$5.88 billion) in 3 years.China Mobile will send out a bill of RMB 5.88 billion(US$ 0.86 billion) before the end of this year in order to build up 60,000 base stations with 70% coverage of main cities over the country whereas China Unicom and China Telecom will spend RMB 3 billion(US$ 0.44 billion) each to run their 3G networks.
Of course,all things are quite hard to predict and here a right strategy will turn the winning rates among the three gamers.Only one thing known is that the battle will be extremely drastic.
I’m looking forward to seeing a wonderful competition in the near future.