Tag Archives: China Telecom

China Telecom latest Business & Financial news from Doug Young, the Expert on Chinese High Tech Market, (former Journalist and Chief editor at Reuters)

News Digest: January 18, 2012

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The following press releases and media reports about Chinese companies were carried on January 18. To view a full article or story, click on the link next to the headline.

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◙ ZTE (HKEx: 763) Aims to Pass Rival Huawei in Smartphone Sales in China (English article)

◙ China Telecom (HKEx: 728; NYSE: CHA) Targets Sales of 45 Mln Smartphones in 2012 (English article)

◙ New Oriental (NYSE: EDU) Announces Results for Fiscal Q2 Ended Nov 30 (PRNewswire)

◙ Ku6 Media (Nasdaq: KUTV) and YouTube Form Tie-Up, Ku6 Stocks Jumps 139 Percent (Chinese article)

◙ Ming Yang (NYSE: MY) Announces Issuance of Up to RMB 1.0 Billion 3 Year Notes (PRNewswire)

News Digest: January 17, 2012

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The following press releases and media reports about Chinese companies were carried on January 17. To view a full article or story, click on the link next to the headline.

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◙ China to Ease Controls on HK Listings: Regulator (English article)

◙ Vancl 2011 Revenue Increases 150% YoY (English article)

◙ Baidu-Invested (Nasdaq: BIDU) Qunar Considers US IPO (Chinese article)

◙ China Telecom (HKEx: 728; NYSE: CHA) to Launch iPhone 4S by March – Source (English article)

◙ Huawei Aims To Become One of World’s Top 3 Cellphone Brand in 3 Years (Chinese article)

Google, Apple OS Rivalry Intensifies 苹果与谷歌在华智能手机战白热化

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The intense rivalry between Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) is heating up in China, with the former hosting a somewhat unruly launch of its latest iPhone 4S in Beijing and Shanghai as the latter prepares to launch an app store for competing smartphones using its Android operating system. Apple made headlines in China over the weekend after scuffles broke out at some of its stores when the iPhone 4S formally went on sale the day before under service contracts with China Unicom (HKEx: 762; NYSE: CHU), China’s second biggest mobile carrier and Apple’s only iPhone partner in China so far. The biggest scuffle occurred when one Beijing store decide not to open due to safety concerns after large crowds lined up overnight to buy the phones as soon as they went on sale. (English article) Such news certainly isn’t great publicity for Apple and could provide some negative impact in the short term. But it also shows just how popular Apple products are in China, since the launch was still able to generate that much buzz even though the 4S was already available on the gray market following its US launch 3 months ago. That fact bodes well for China Telecom (HKEx: 728), China’s smallest mobile carrier, which is also reportedly near its own deal to offer the iPhone 4S on its 3G network and could hold launch the model as soon as next month. (previous post) Meantime, Chinese media are reporting that Google is preparing to launch a mainland Chinese version of its app store for Android phones, which would come just 2 months after Apple made a similar move by starting to accept payments in local currency, the renminbi, for its own China app store. (English article) Of course all this just shows the war between Apple and Google in the smartphone space will only intensify in the Year of the Dragon, and I wouldn’t be surprised to see the former sue the latter in China later this year as part of its global strategy of fighting Android through litigation.

Bottom line: The smartphone war between Apple and Google is heating up in China with new products from both, and could see Apple launch China-based lawsuits targeting Google’s Android later this year.

Related postings 相关文章:

◙ Apple Suffers Setback in China Lawsuit Loss 苹果在华商标侵权案初尝苦果

◙ Unicom, China Telecom in iPhone 4S 中国电信有望领先推出iPhone 4S Race

◙ Apple Overlooks China — Again 苹果再次撇开中国内地市场

China Takes a Bite From Apple 中国作者咬苹果一口

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Apple is fast discovering that China may be a land of huge potential, but that it will also come with its own set of challenges, as evidenced by several new developments with both positive and negative overtones. In the former category, the company is close to a deal to offer its latest iPhone 4S via China Telecom (HKEx: 728; NYSE: CHA), China’s third largest carrier, which would follow close on the heels of a similar deal with China Unicom (HKEx: 762; NYSE: CHU), the second largest carrier which will begin selling the iPhone 4S on Friday. (Chinese article) On the negative front, meantime, a group of local writers are preparing to sue Apple for copyright infringement related to the unauthorized use of their material for some apps from Apple’s iPhone store. (Chinese article) Let’s look at the positive news first, which has Chinese media reporting trials have successfully concluded for a version of the iPhone 4S that will work on China Telecom’s 3G network that uses a technology called CDMA EVDO. That deal would mark the latest China inroad for Apple, which could find a better Chinese partner in China Telecom, which is more aggressive and better organized than Unicom, Apple’s oldest China partner. At the same time Chinese media are also reporting that China’s biggest carrier, China Mobile (HKEx: 941; NYSE: CHL), may also be close to an iPhone deal for its 3G network. (Chinese article) But the reports only cite market talk, and such chatter has become so common that I wouldn’t put too much credibility behind this latest rumor. Meantime, Chinese media are also reporting about a looming copyright lawsuit against Apple from a group of 9 Chinese authors, who will seek damages of around 12 million yuan, or about $2 million. This kind of lawsuit is insignificant from to Apple from a financial perspective, even if it loses. But similar lawsuits against big names like Baidu (Nasdaq: BIDU) have brought widespread negative publicity, which could ultimately hurt Apple’s image in China and therefore undermine sales. This  lawsuit comes just a month after another legal setback for Apple in China, in this case after a Chinese court ruled another company owned the rights to the iPad name despite objections from Apple. (previous post) Stay tuned for more clashes like these as China becomes an increasingly important market for Apple.

Bottom line: An imminent iPhone 4S deal with China Telecom marks the latest Chinese advance for Apple, while a copyright lawsuit against it is the latest in a growing series of challenges.

Related postings 相关文章:

◙ Apple Suffers Setback in China Lawsuit Loss 苹果在华商标侵权案初尝苦果

◙ Unicom, China Telecom in iPhone 4S Race 中国电信有望领先推出iPhone 4S

◙ Apple Prepares to Take on China Pirates 苹果开始接受人民币付款购买应用软件

China Telcos In New Drives at Home, Abroad 中国三大电信运营商海内外发力

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China’s 3 telcos are all in the news in this first week of the new year, with China Unicom (HKEx: 762; NYSE: CHU) making a long-awaited iPhone announcement, while an intriguing newly announced chip could give a big boost to China Mobile‘s (HKEx: 941; NYSE: CHL) 3G service. Last but not least, China Telecom (HKEx: 728; NYSE: CHA) has announced an interesting move abroad, with potentially more to come. Let’s start with Unicom, which after months of delay, will finally start selling Apple’s (Nasdaq: AAPL) newest iPhone 4S on January 13. (English article; Chinese article) This news comes as other media are reporting that Unicom will also soon launch 8 new low-cost smartphones (English article), after the company blamed a shortage of such models last year for its disappointing progress in the 3G space. These latest Unicom developments look like a step in the right direction after a disappointing year in 2011, but I still have big doubts about the company’s ability to execute due to ongoing management turmoil that led it to squander a golden opportunity for growth in 2011. (previous post). Meantime, chip developer Spreadtrum (Nasdaq: SPRD) has announced an interesting new low-cost chip designed specifically for China Mobile, which can handle the company’s homegrown 3G standard, TD-SCDMA, along with its 2G EDGE standard and also wi-fi, which the company is strongly developing. (company announcement; Chinese article) If this chip is good, which looks like a strong possibility, we could soon see a strong new field of low-cost products coming out that could be very attractive for China Mobile customers, helping it to regain some of its lost momentum this year as a new generation of leaders put their mark on the company. (previous post) Finally there’s China Telecom, which will start offering a mobile service under its own name in Britain with plans to expand to France and Germany. (English article) The move will make China Telecom China’s first telco to become a mobile virtual network operator (MVNO), as it looks to cater to the growing number of Chinese living overseas. I applaud China Telecom for its effort to look for new business opportunities abroad, though the VMNO model has been notoriously difficult and only a few companies have really succeeded in the space, such as Britain’s own Virgin Group. That said, I would give this initiative only a 20-30 percent chance for success, but would expect to see China Telecom trying more similar innovative overseas initiatives in the next 2 years.

Bottom line: New products from China Unicom and China Mobile could breath new life into their 3G business this year, while an overseas move by China Telecom is likely to fail.

Related postings 相关文章:

◙ China Telecoms Faces Power Struggle, Half-Baked 4G 中国电信行业遭遇政府监管权利斗争

◙ Unicom, China Telecom in iPhone 4S 中国电信有望领先推出iPhone 4S Race

◙ China Mobile 3G: Where Are the Subscribers? 中国移动3G：订户在哪里？

News Digest: January 5, 2012

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The following press releases and media reports about Chinese companies were carried on January 5. To view a full article or story, click on the link next to the headline.

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◙ China Telecom (HKEx: 728) May Expand to France, Germany Following U.K. (English article)

◙ Apple (Nasdaq: AAPL) iPhone 4S Arrives in China on January 13 (Businesswire)

◙ PetroChina (HKEx: 857) Announces Formation of Insurance Joint Venture (HK Stock Exchange)

◙ Spreadtrum (Nasdaq: SPRD) Makes 1GHz Low-Cost Platforms for TD-SCDMA & EDGE/WiFi (PRNewswire)

◙ Nokia (Helsinki: NOK1V) Says to Move Asia-Pacific President to Beijing From Singapore (Chinese article)

News Digest: December 21, 2011

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The following press releases and media reports about Chinese companies were carried on December 21. To view a full article or story, click on the link next to the headline.

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◙ Ping An Insurance (HKEx: 2318) to Sell Up to 26 Billion Yuan of Convertibles (English article)

◙ China Telcos Announce November 2011 Subscriber Totals (English article)

◙ Xiaomi Lands USD 90 Mln in New Funding (English article)

◙ Canadian Solar (Nasdaq: CSIQ), TransCanada Corp In Deal For 86MW Solar Project in Ontario (PRNewswire)

◙ Mindray Medical (NYSE: MR) to Acquire a Controlling Stake in Hunan Changsha TDR Biotech (PRNewswire)

2011: China Unicom’s Lost Year 中国联通失落的一年

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Early this year I predicted that 2011 would be a breakthrough year for China Unicom (HKEx: 762; NYSE: CHU) (previous post), as it capitalized on its superior 3G technology and status as Apple’s (Nasdaq: AAPL) only official partner in China to take market share from its rivals. But as we head into the new year, history is much more likely to dub 2011 a year of lost opportunities for China’s perennial No 2 mobile carrier. What’s worse, 2012 doesn’t look much better, with Unicom on the cusp of losing its position as China’s second biggest player in the critical 3G market to more aggressive and better organized rival China Telecom (HKEx: 728; CHA). The latest signs of disarray at Unicom crop up almost daily, as the company seems to never have fully recovered from a major merger nearly 3 years ago that led to its current form. Chinese media are now reporting that Unicom is in the midst of its latest shakeup of top management at many of its biggest provincial subsidiaries, though even that process appears to be riddled with problems. (Chinese article) This shakeup has been going on since at least the middle of the year (previous post), and is obviously a huge distraction for the company which instead should have been focused on using its superior technology and Apple relationship to build up its 3G business. As a result of the internal chaos, the company’s 3G market share has held steady at around 30 percent all year, even as industry leader China Mobile (HKEx: 941; NYSE: CHL) has lost steady share in this critical new area to China Telecom, whose share has risen from about 24 early this year to 28 now. At this rate China Telecom will probably pass Unicom as the second biggest 3G carrier by next February or March. Reflecting just how inept Unicom has become, Chinese media are reporting that the company has only just now announced it will offer the latest Apple iPhone, the 4S, by January, months after its global roll-out. (English article) No reason was given for the delay, but previous reports have indicated Unicom was slow to get Apple’s latest hot product tested for compatibility with its system. And in one final show of incompetence to end the year, Chinese media are reporting Unicom won’t even offer the 3G version of the popular iPad 2 tablet PC due to weak sales for the non-3G iPad 2 in China. (Chinese article) This company sorely needs to get itself straightened out, or face a potentially disastrous 2012.

Bottom line: China Unicom has seen a steady stream of lost opportunities in 2011, and its slide is likely to continue next year as it loses the No 2 spot to China Telecom in the important 3G market.

Related postings 相关文章:

◙ Sputtering Unicom’s Latest Excuse: Lack of Leadership

◙  Unicom’s Sputtering 3G: Blame It On the Handsets 联通幡然醒悟 借低价手机扩张3G市场

◙ Unicom, China Telecom in iPhone 4S 中国电信有望领先推出iPhone 4S Race

Telecoms: Huawei Quits Iran, Broadband Probe Continues 中国电信业三大热门事件

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The telecoms world was buzzing over the weekend with a number of interesting news bits, including Huawei’s latest bid to win Western approval, a new wrinkle in an ongoing anti-monopoly probe in the broadband space, and the latest rumors of the imminent arrival of Apple’s (Nasdaq: AAPL) iPhone 4S to China. Let’s start with Huawei, China’s telecoms superstar whose efforts to enter the US have been repeatedly thwarted by politicians worried that the company is just a spying arm of Beijing despite its steady stream of efforts to prove otherwise. In the latest of those efforts, Huawei has said it will voluntarily restrict its business in Iran, a regular nemesis of the US and other Western nations that suspect it is trying to develop atomic weapons. (English article) The US in particular is trying to punish Iran with economic sanctions to get it to halt its nuclear program; so in that light, this latest move by Huawei should earn it some goodwill by showing the company won’t deal with rogue nations like Iran. This kind of move should help diffuse at least some of the bad feelings towards it by US politicians, but I still believe the company won’t earn any major contracts in the US until 2013 at earliest, after next year’s presidential elections. Moving on to broadband, Chinese media are reporting that the NDRC, China’s state planner which is conducting an anti-monopoly investigation into China Telecom (HKEx: 728; NYSE: CHA) and China Unicom (HKEx: 762; NYSE: CHU), has rejected a plan by the former to lower prices and improve service in exchange for ending the probe. (Chinese article) The NDRC is instead calling for both telcos to negotiate a more holistic approach to addressing the issue, which looks like a smarter approach than letting the companies simply offer their own piecemeal solutions. I expect this conflict will get solved in the next few months through this kind of negotiation, to the benefit of Chinese consumers and detriment of the top and bottom lines of the 2 telcos. Last but not least, media are saying the iPhone 4S, now on sale for several months in most major markets, has finally won approval from China’s telecoms regulator. (Chinese article) If this news is true, I would expect to see Unicom offer the latest iPhone as soon as January with China Telecom to potentially follow soon thereafter with its first iPhone deal. (previous post)

Bottom line: Huawei’s pledge to limit its Iran activity will win it goodwill in its drive to enter the US, while the NDRC’s broadband anti-monopoly probe will probably reach a settlement in mid 2012.

Related postings 相关文章:

◙ US China Bashing Hits New High With Telecoms Probe 华为中兴应巧选时机应对调查

◙ China Telecom, Unicom Enter Contrition Mode 中国电信和中国联通悔过自新

◙ Unicom, China Telecom in iPhone 4S 中国电信有望领先推出iPhone 4S Race

News Digest: December 10-12, 2011

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The following press releases and media reports about Chinese companies were carried on December 10-12. To view a full article or story, click on the link next to the headline.

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◙ Regulator Dissatisfied With China Telecom (HKEx: 728) Anti-Monopoly Plan (Chinese article)

◙ Huawei Technologies to ‘Voluntarily’ Restrict Business Dealings in Iran (English article)

◙ China Passenger-Car Sales Gain at Slowest Pace in 6 Months as Demand Wanes (English article)

◙ Broker Haitong Delays as Hong Kong IPOs Aim Low (English article)

◙ Mindray Medical (NYSE: MR) to Acquire a Controlling Stake in Zhejiang Greenlander (PRNewswire)

China Mobile 3G: Where Are the Subscribers? 中国移动3G：订户在哪里？

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A leaked memo from China Mobile (HKEx: 941; NYSE: CHL), if it’s true, is providing an embarrassing look at the spectacular failure of the company’s sputtering 3G service. According to the memo, the country’s dominant mobile carrier now has a paltry 3.5 million data card users, representing a tiny portion of its 640 million total users, even though data services are supposed to be a key future growth driver. (English article) Making the situation even more embarrassing, only about half of those data card users were using China Mobile’s 3G service, while the rest were using its older 2G network. So that means that even though China Mobile reported having 45 million 3G subscribers at the end of October, only 1.7 million of those, or less than 4 percent, were using the service primarily for its Web surfing capabilities, which is what data cards are designed for. So my question to China Mobile is: what exactly are the other 43 million 3G users subscribing to? My guess is that many of them are really just 2G users who have paid a minimal fee, or possibly no fee at all, to upgrade to 3G packages that China Mobile is promoting less to build up the business and more to satisfy Beijing that it is working to justify its expense of more than $10 billion to build its 3G network. To be fair, China Mobile has been handicapped from the start in 3G by Beijing’s decision forcing it to build a 3G network based on the homegrown TD-SCDMA standard, which is only used in China and suffers from a wide range of technical problems, not to mention a scarcity of handsets that can operate on the system. The company has shown recent signs of stepping up its 3G campaign as a new generation of leadership moves in with the expected retirement of longtime Chairman Wang Jianzhou. If these new leaders are smart, they will aggressively work to fix the 3G glitches and improve coverage to build up China Mobile’s data card users, which would help to not only provide a lucrative new revenue source but also convince consumers that the company has a viable 3G offering to compete with rival products from China Telecom (HKEx: 728; NYSE: CHA) and China Unicom (HKEx: 762; NYSE: CHU).

Bottom line: A leaked memo from China Mobile showing very low 3G data card subscribers underscores the company’s pathetic progress in promoting 3G to date.

Related postings 相关文章:

◙ China Mobile Tries 4G Back Door in Shenzhen 中国移动试图绕过监管机构于深圳秘密规划4G网络

◙ China Mobile’s TD 3G Fading Fast 中国移动3G网络前景黯淡

◙ 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