China Mobile: Where’s the 3G iPhone?
A flurry of new reports about China Mobile’s highly anticipated 4G network came out toward the end of last week, with news of expanded trials and a near-certain tie-up with Apple (Nasdaq: APPL) for an iPhone that will run on the network’s homegrown Chinese technology. But perhaps more interesting was WASN’T in the reports, namely any updates on China Mobile’s talks to develop an iPhone for its struggling 3G network, also based on a Chinese technology standard. One of the two reports late last week cites China Mobile Chairman Wang Jianzhou saying his company has reached an agreement with Apple to work together on an iPhone for the company’s 4G mobile network using a technology called TD-LTE, which is now in advanced trial stages. (Chinese article) A separate article says China Mobile also plans to soon wrap up its first big-scale trials for TD-LTE in six major cities, with plans to start data card trials by the end of the year. (English article) If all goes according to plan, it looks like we could see China Mobile launch serious commercial trials for this 4G network by the end of next year, with full commercial service as soon as 2013 if the telecoms regulator agrees. That’s all fine and good for people looking ahead to 2013, but what’s missing here is any update from the talkative Wang on current talks to build an iPhone for China Mobile’s struggling 3G network, based on a problematic technology called TD-SCDMA. Reports have been rife for a while that China Mobile was close to a deal for a 3G iPhone, after it confirmed last year that such talks were taking place. But Wang’s latest silence looks like either he’s learned to keep quiet on sensitive matters, or more likely the 3G iPhone talks have hit a stumbling block, perhaps due to technology issues. If that’s the case, China Mobile and its stagnant bottom line may have to wait a while still for an iPhone that could bring new life to its 3G and 4G businesses.
Bottom line: China Mobile is making steady progress on its 4G network, but its chairman’s recent silence means talks for a 3G iPhone may have hit a stumbling block.
