China Mobile’s TD 3G Fading Fast 中国移动3G网络前景黯淡
China Mobile’s (HKEx: 941; NYSE: CHL) brief chance to generate excitement for its struggling 3G network based on a homegrown technology is rapidly disappearing, with even the networking equipment sellers who once saw big bucks in the technology known as TD-SCDMA now starting to abandon the standard. Chinese media are reporting that the latest round of contracts to expand China Mobile’s struggling 3G network received only lukewarm response from equipment suppliers, who have quietly started raising their prices to help build a network based on the problematic technology. (English article) The reports aren’t much more specific, but the general tone suggests the equipment suppliers, whose ranks include domestic names like Huawei and ZTE (HKEx: 0763; Shenzhen: 000063), as well as global names like Ericsson (Stockholm: ERICb) and Alcatel Lucent (Paris: ALUA), are finally realizing their TD-SCDMA products will have little or no market outside China, even as they spend big money to address problems with the technology that doesn’t have any users besides China Mobile. Similar realizations by Apple (Nasdaq: AAPL) were likely a major factor behind reports last week that its sputtering talks to create an TD-SCDMA iPhone had finally broken down, in another major setback for China Mobile and its 3G network. (previous post) China Mobile has steadily lost share in China’s 3G market due to its poor technology and equally poor roll out of the network, reflecting lack of focus at the company as it prepares for a major leadership change with the upcoming retirement of long-serving Chairman Wang Jianzhou. This latest development seems to indicate that trend will continue for a while still, with China Mobile’s share of the 3G market — which has already slipped to 42 percent from 45 percent at the beginning of the year – likely to slip further still to a third or even less over the next couple of years.
Bottom line: A cool response by equipment suppliers to China Mobile’s latest 3G network expansion reflects ongoing problems with a network whose share could soon dip below a third.
Related postings 相关文章:
◙ China Mobile: Poor 3G Approach Yields Weak Results 中移动3G策略不当 拖累公司三季度业绩
◙ TD-LTE Hits First Delay, More to Come? TD-LTE技术首次延期 未来还会更多？
◙ China Mobile Shuffle: Sea Change Coming? 中移动高层变动或引发重大变化？
