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)

China Telecom Set for Boost With Imminent iPhone Deal 中国电信借力iPhone

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After a few weeks of relative quiet for Apple (Nasdaq: AAPL) in China, there’s new buzz in the telecoms sector that China Telecom (HKEx: 728; NYSE: CHA) is set to start offering the iPhone 5 in October, ending months of speculation about the move. (Chinese article) The Chinese media reports are a bit unclear about whether the smallest of China’s 3 telcos has actually signed a deal with Apple, only saying China Telecom will offer the iPhone 5 starting in October and that vendors are already placing orders for the popular smartphone. That does seem to imply that the two sides have signed a deal, although I would expect an official announcement from China Telecom if that was the case, as clearly this is news it would want to publicize as part of its aggressive drive to build up its fledgling 3G business. Regardless of the actual situation, it does appear that China Telecom will start to offer iPhone service plans by October or November at the latest, which should give it a brief momentum boost over its two chief rivals, China Unicom (HKEx: 762; NYSE: CHU) and industry titan China Mobile (HKEx: 941; NYSE: CHT) as the 3 jostle for share in China’s 2-year-old 3G market. I use the word “brief” because China Telecom will probably only have a 2 or 3 months to bask in its new iPhone deal before China Mobile announces a bigger new deal to offer an iPhone that can work on its own 3G network, based on a homegrown Chinese technology called TD-SCDMA. (previous post) Such a deal has been rumored for months and appears to be near, which should help China Mobile take back some of the momentum it has lost over the last 2 years to China Telecom and Unicom, which already offers the iPhone. Of course, the winner in all this will be Apple itself, which will be able to use all 3 of China’s telcos to offer its iPhones that enjoy huge popularity in China — the world’s largest mobile market with more than 900 million subscribers. But among the carriers themselves, look for China Telecom to enjoy some momentum through the end of this year, which it will rapidly lose in 2012 after China Mobile signs its own iPhone deal.

Bottom line: China Telecom’s imminent deal with Apple to offer iPhones for its 3G network will give it new momentum over its rivals that will last through the end of the year.

围绕苹果(AAPL.O)的消息在中国刚相对平静了几周，通信业内又传出中国电信(0728.HK)(CHA.N)将于10月率先在中国推出iPhone 5的消息，结束此前几个月的坊间猜测。中国媒体称，还不清楚中国电信是否已经确实与苹果签订了有关协议，只是说中国电信将从10月开始提供iPhone 5， 经销商已经下单采购。这看似意味着双方已经签约，不过我预计若确有此事，中国电信会发布正式公告。这明显是中国电信想对外散布消息，也是希望推广其3G业务努力的一部分。无论实际情况如何，中国电信看似确实要在10月或最晚11月开始推出iPhone服务计划。这无疑在中国电信在3G领域挑战中国联通和中国移动过程中，带来短时的提振。我说“短时”是因为中国电信可能只会赢得两三个月的时间，享有拓展iPhone业务的领跑优势，随後中国移动可能会宣布更大规模基于其3G标准–TD-SCDMA网络的iPhone推广计划。关于中移动的传闻已经有几个月，现在似乎已经快要接近现实了，这将帮助中移动收复过去两年流失到中国电信和中国联通的部分失地。无疑，苹果将是上述竞争的最终获益者，能够利用中国全部三家电信公司的渠道售卖iPhone，而苹果的iPhone产品在拥有逾九亿用户的全球第一大移动通讯市场享有极高人气。但是，从各家中国电信运营商来看，中国电信在年底前会享受些许成长助力，在明年中国移动签约自己的iPhone之後，中国电信在这方面的优势将迅速消退。

一句话：中国电信即将签约苹果，提供用于其自身3G网络的iPhone业务启动在即，将在移动通讯市场竞争中获得新的动能，但好光景也许只能维持到年底。

Related postings 相关文章:

◙ Latest Comments Show Why China Mobile’s Conservative Wang Should Retire 王建宙从中国移动退休或许已为期不远

◙ China Mobile Turns Up 3G With New Handset Push 中国移动3G再发力

◙ China Mobile Nears iPhone Deal, Continues 4G Press 中移动iPhone协议近尾声 加紧4G攻势

Hulu Makes First Global Stop in Japan, China Next?

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And the winner is … Japan. That’s the word coming from Hulu, the popular video streaming site backed by 3 top Hollywood studios, which has just announced that Japan will be the first stop in its international expansion. (company announcement) The fact that China wasn’t chosen isn’t all that surprising, as Japan and most of Western Europe boast far wealthier consumers to buy the mostly paid programming services offered by Hulu, whose primary backers include Disney (NYSE: DIS), News Corp (Nasdaq: NWS) and Comcast’s (Nasdaq: CMCSA) NBC Universal. But what’s interesting for China watchers is the language towards the bottom of the announcement, where Hulu describes itself as a company with offices in “Los Angeles, New York, Chicago, Seattle, Tokyo and Beijing.” That’s the exact wording, with Tokyo and Beijing listed as Hulu’s only offices outside the US, in that order. Does that mean that China will be the next stop on Hulu’s global expansion? I would say there’s a good chance the answer is “yes”, given the recent flurry of Hollywood deals to provide content to the growing number of Chinese video and music sites under growing pressure from Beijing to delete illegal content and offer legal material instead. Top online video site Youku (NYSE: YOKU) has been a leader in the recent trend, signing deals with Warner Brothers (NYSE: TWX) and Philips Electronics (Amsterdam: PHG) (previous post), while leading search site Baidu (Nasdaq: BIDU) also recently signed a deal with several major record labels to offer legal copies of their music. (previous post) The timing also looks particularly good for Hulu, as it could offer its programs not only over the Internet, but also potentially over a state-of-the-art digital home cable network being rolled out soon by China Telecom (HKEx: 728; NYSE: CHA) or via a future similar network being created through an ongoing national cable TV consolidation plan. If the Japan roll-out goes smoothly, I’d look for a Hulu announcement in China possibly as early as the end of this year, but more likely in 2012.

Bottom line: Hulu’s move to Japan presages a move into China for the second stop on its global expansion, most likely in 2012.

Related postings 相关文章:

◙ Youku’s New Formula: Sponsored Programs 优酷“新配方”：赞助项目

◙ After Years, Baidu Does the Right Thing 百度多年来的一个正确之举

◙ TV Programers Dial Up Success on Internet 电视电影制片商迎来网络商机

 

Tidbits: UMPay, Giant Interactive, China Telecom

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Today marks the launch of a new item consisting of occasional tidbits that aren’t big enough for individual articles but look interesting nonetheless, along with a thought or two on what it all means.

— UMPay: Chinese media are reporting that this joint venture between industry powerhouses China Mobile (HKEx: 941; NYSE: CHL) is applying for a license to provide electronic payment services. (English article) Given the two venture partners’ dominant position in both of their spaces, such a venture could quickly become a major player, threatening smaller e-payments companies as well as bigger ones like Alibaba’s Alipay.

— Giant Interactive (NYSE: GA): The company has announced a payout date of September 9 for its massive one-time dividend of $3 per share, which amounts to a whopping 36 percent of its latest closing share price. (company announcement) Its stock has risen about 50 cents a share since it announced the dividend early this month, clearly far less than the size of the dividend. I’ll be watching closely to see how the shares trade on September 12, after the dividend is paid.

— China Telecom (HKEx: 728; NYSE: CHA): Chinese media report the company recently launched a tender for more than 3 million set-top boxes — the clearest sign yet that China’s leading fixed-line carrier is close to a major launch for a video-on-demand type service that it has long talked about but has yet to appear. (English article) Such a service could provide a major source of new income, as the company struggles with steady declines for its fixed-line phone business.

China Mobile Turns Up 3G With New Handset Push 中国移动3G再发力

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With its new top management now firmly running the show, China Mobile (HKEx: 941; NYSE: CHL) continues to embrace its previously neglected 3G network, preparing to roll out a large new array of handsets that will work on the system using a homegrown mobile standard. Local media are reporting that China Mobile is preparing to launch some 30 new 3G handsets for its TD-SCDMA system, covering a wide range of price-points and models from nearly every major manufacturer, including Nokia (Helsinki: NOK1V), Samsung (Seoul: 005930) and BlackBerry (Toronto: RIM), as well as homegrown players ZTE (HKEx: 763; Shenzhen: 000063) and Huawei. (English article) Of course, the big piece still missing is a TD-SCDMA version of Apple’s (Nasdaq: AAPL) iPhone, but all indications point to introduction of an iPhone that can work on China Mobile’s 3G system by the end of the year. (previous post) As its 3G push picks up momentum, look for the balance in China’s young 3G market to swing back in China Mobile’s direction, as it retakes share from rivals China Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHA). Separately on the telecoms front, Nokia has come out and confessed that it is suffering from “channel issues” in China, following media reports earlier this month that its China distributors were rebelling en masse by refusing to sell its increasingly unpopular models after years of bullying. (Chinese article) According to this  latest report, Nokia forced large volumes of its phones on distributors in the first quarter of this year, allowing it to post 30 percent shipment growth in China for the period. But many of those phones couldn’t compete with more popular models, especially in the smartphone space, causing inventories to balloon and distributors to refuse to accept more handsets. As a result, Nokia’s China shipments tumbled 41 percent in the second quarter. Clearly the company is set for more stormy times ahead in China, at least until it comes out with its highly-anticipated new line of smartphones later this year based on Microsoft’s (Nasdaq: MSFT) Mango operating system.

Bottom line: China Mobile’s new 3G push will help it grab market share from rivals, while Nokia will continue to slide in China at least until it rolls out its new Mango-based smartphones.

中国移动(0941.HK; CHL.N)在新的管理层全力指挥下，继续向先前忽略的3G网络发力，准备扎堆推出一系列采用本土3G标准的新款手机。据国内媒体报导，中移动准备发布高、中、低档总数约30款的TD-SCDMA新机型，分别出自诺基亚(NOK1V.HE)、三星电子(005930.KS)、黑莓制造商Research In Motion(RIMM.O)及本土企业中兴通讯(000063.SZ; 0763.HK)与华为等厂商。当然，仍然缺少重量级产品–TD版的苹果iPhone，但所有迹象都表明：适用于中国移动3G网络的TD版iPhone今年年底前可能推出。随着中移动突击发展3G网络，中国诞生不久的3G格局可能会向中移动倾斜，因它可能会从竞争对手中国联通(0762.HK; CHU.N)与中国电信(0728.HK; CHA.N)中抢回一些市场份额。另外，在手机制造商方面，诺基亚已经承认在中国市场“渠道”环节出问题。此前媒体报导称，由于中国渠道商不愿出售诺基亚越来越受不欢迎的机型，诺基亚开始遭遇集体“反水”。根据最新报导，诺基亚今年第一季度在向渠道商大量压货的情况下，手机出货量有不错表现，录得30%的同比增长。但很多诺基亚机型无法与对手竞争，尤其是在智能手机领域，造成库存高企，渠道商拒绝接受更多现货。结果，诺基亚第二季度在中国的手机出货量同比大跌41%。显然，诺基亚未来在中国还要面临很多困难，至少今年稍晚推出搭载微软最新的Mango操作系统的新产品系列前，道路会很坎坷。

一句话：中移动在3G领域再发力，有助于帮助它从竞争对手手中夺回一些市场份额；诺基亚近期在华业绩仍会下滑，至少其Mango系统新机推出前难改颓势。

Related postings 相关文章:

◙ China Mobile Nears iPhone Deal, Continues 4G Press 中移动iPhone协议近尾声 加紧4G攻势

◙ Nokia Facing China Backlash After Years of Dominance 诺基亚手机在华“失宠”

◙ China Mobile: New iPhone Steps as Wang Exit Moves Closer 中移动与苹果接近达成协议

China Mobile Nears iPhone Deal, Continues 4G Press 中移动iPhone协议近尾声 加紧4G攻势

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China Mobile (HKEx: 941; NYSE: CHL), under new leadership as long-serving Chairman Wang Jianzhou gets set to retire, is showing signs of new life on several fronts, including some of its best earnings in quite a while. The company reported its second-quarter profit rose 7 percent — a figure that might look boring by anyone else’s standards but marks a sharp improvement for a company that has reported low single-digit growth and even one decline for most of the past three years. (English article) The company credited the growth to revenue from stronger data services traffic, an area that China Mobile had neglected in the last two years after failing to win a 3G license based on globally developed technology and instead being forced to use a homegrown standard. After those two years of denial, China Mobile seems to finally be not only facing its less-than-ideal 3G reality but also embracing it, pushing hard for a deal to develop and offer a version of Apple’s (Nasdaq: AAPL) popular iPhone based on its homegrown 3G standard. After welcoming Apple’s COO Tim Cook to its Beijing headquarters in June as part of those talks (previous post), China Mobile disclosed last week that none other than Apple chief Steve Jobs himself has joined the negotiations, indicating a deal is likely in the next 1-2 months and the company could offer its own 3G iPhones by the end of the year. Wang is also keeping up China Mobile’s pressure on the telecoms regulator to issue 4G licenses sooner rather than later, saying the company’s 4G trial networks in 6 major Chinese cities could be ready for commercialization by next year. (Chinese article) The commercial launch of such 4G service, which uses more reliable technology than China Mobile’s 3G network, would bring even more momentum back to China Mobile at the expense of smaller rivals China Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHA), and if all goes according to plan I could easily see China Mobile returning to double-digit profit growth as soon as the end of this year.

Bottom line: China Mobile is rapidly regaining  momentum under its new leadership, and could easily return to double-digit profit growth by the end of this year.

中国移动(0941.HK)董事长王建宙即将退休，在新领导层带领下，中移动在各方面显露出新成长迹象，包括近期财报表现出色。中移动财报显示，其第二季度利润同比增长约7%，这在其它公司看来或许表现平平，但过去三年中多数时候，中移动一直以个位数低幅增长，甚至出现一次亏损，因此这一增幅标志着其经营状况大幅改观。中移动将此归功于数据服务流量增加，中移动在两年前的3G牌照颁发中仅取得中国自主研发的TD-SCDMA标准後，一直未对数据服务领域给予重视。两年之後，中移动似乎终于面对并接受其差强人意的3G现实并积极应对，正努力争取达成协议，提供基于TD-SCDMA标准的苹果(AAPL.O)iPhone。苹果首席运营官库克（Tim Cook）6月到访中移动北京总部谈判，中移动上周披露，苹果首席执行官乔布斯亲自参与谈判，表明协议或在1-2个月内完成，中移动年底前或推出TD-SCDMA版3G iPhone。王建宙还将继续敦促工信部尽早发放4G牌照，称中移动在六大城市的TD-LTE试点网络预计明年可以实现商用。由于中国移动的4G技术比现有的3G技术可靠，服务商用化启动，4G的商用将对中移动更为有利，但代价是牺牲中国联通(0762.HK, CHU.N)和中国电信(0728.HK, CHA.N)等规模较小的竞争对手，如果一切依中移动的计划推进，我认为，中移动在年底前将轻而易举地恢复利润两位数增长。

一句话：中国移动在新管理层带领下，将迅速夺回市场份额，年底前将轻而易举重返利润两位数增长。

Related postings 相关文章:

◙ China Mobile: New iPhone Steps as Wang Exit Moves Closer 中移动与苹果接近达成协议

◙ Telecoms Regulator Shifts Tone on 4G 电信监管者就4G牌照发放转变口风

◙ Goldman Joins List of TD-LTE Boosters 高盛加入支持TD-LTE网络阵营

News Digest: August 4

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The following press releases and media reports about Chinese companies were carried on August 4. To view a full article or story, click on the link next to the headline.

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◙ China Telecom (HKEx: 728), Apple (Nasdaq: AAPL) In Preliminary iPhone Deal – Source (English article)

◙ Tudou Plans to Raise $120 Mln in US IPO This Week – Source (Chinese article)

◙ Elavon (NYSE: USB) and China UnionPay Reach Processing Agreement (Businesswire)

◙ Sina Corp (Nasdaq: SINA) to Report Q2 Financial Results on August 17 (PRNewswire)

◙ Dangdang (NYSE: DANG) to Report Q2 Financial Results on August 16 (PRNewswire)

China Mobile: New iPhone Steps as Wang Exit Moves Closer 中移动与苹果接近达成协议

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After years of stagnanation under charismatic but otherwise uninspired longtime Chairman Wang Jianzhou, China Mobile (HKEx: 941; NYSE: CHL) seems to finally be regaining some of its long-lost excitement with buzz of Wang’s imminent departure and the signing of a new deal to sell Apple’s (Nasdaq: AAPL) popular iPhone. In the latest development on the Apple front, Chinese media are reporting that China Mobile’s Beijing subsidiary has quietly added the iPhone 4 to the list of models it will support for international roaming plans. (Chinese article) While use of unauthorized iPhones on China Mobile’s 2G network has been common ever since the iPhone first debuted, this official support for Apple could indicate that China Mobile may be very close to striking a deal to offer official iPhone service that can run on its 3G network using homegrown Chinese technology. The company announced last year it was in such talks with Apple, and a low-key visit to its headquarters in June by Apple COO Tim Cook fueled speculation that a deal could be near. (previous post) The talk alone has helped China Mobile’s languishing stock to regain some of the momentum it has lost over the last few years to more nimble rivals China Telecom (HKEx: 728; NYSE: CHA) and China Unicom (HKEx: 762; NYSE: CHU), which also have the advantage of using better technology in their 3G networks. Adding to the growing excitement around China Mobile’s “rebirth”, Chinese media are reporting that Xi Guohua, who recently took over the role of secretary of China Mobile’s state-run parent from Wang Jianzhou (previous post), has now assumed the title of vice chairman at the listed company as well. (Chinese article) Xi’s rapid rise, coupled with last year’s elevation of another up-and-comer, Li Yue, to president of the listed China Mobile, seem to indicate that Wang’s departure from the company could be imminent, bringing in much-needed new blood and fresh ideas to the top of this cash-rich but otherwise stagnant telecoms giant.

Bottom line: China Mobile’s imminent arrival of top new leadership and an iPhone deal will breath new life into the company’s business and also its stock, following years of stagnation.

中国移动<0941.HK> <CHL.N>在经历了多年发展迟滞後似乎终於将出现一些可喜的变化，有传言称，王建宙即将离任，且中移动将与苹果<AAPL.O>签署销售iPhone手机的协议。关於中移动与苹果的最新合作进展，据中国媒体报导，北京移动悄然将iPhone 4列入了促销活动范围。尽管自iPhone上市以来，在中移动2G网络上使用未被授权的iPhone手机相当普遍，但这种对苹果手机的正式支持或许意味着，中移动与苹果可能接近达成协议，在其3G网络上提供iPhone服务。中移动去年曾宣布，公司正与苹果公司就相关合作进行谈判，而苹果首席运营官库克(Tim Cook)6月份低调访问中移动总部的消息也加剧了这一传闻。仅传言本身就帮助中移动疲软的股价重获动力，中移动在过去几年的增长势头不及中国联通< 0762.HK><CHU.N>和中国电信<0728.HK><CHA.N>。另外，据中国媒体报导，刚接任中移动母公司党组书记不久的奚国华已被任命为中移动上市公司副董事长。奚国华的快速晋升以及去年升任中移动上市公司总裁李跃的提升似乎说明，王建宙可能即将离任，这将为中移动高层带来亟需的新鲜血液和想法。

一句话：经过数年的发展迟滞後，中移动即将出现的高层变动以及与苹果的协议将为该公司业务和股价带来新的活力。

Related postings 相关文章:

◙ Apple’s COO Comes Calling on China Mobile 苹果首席运营官造访中移动

◙ China Mobile: Chairman Wang Preparing to Leave? 中国移动：王建宙董事长要退休？

◙ Apple on a China Roll, Ambushing Nokia, Lenovo 苹果伏击诺基亚和联想 在华发展势如破竹

Telecoms Regulator Shifts Tone on 4G 电信监管者就4G牌照发放转变口风

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After saying on several occasions earlier this year that 4G licenses won’t be issued for at least the next 2-3 years, China’s telecoms regulator is subtly shifting its message, no doubt under heavy pressure from China Mobile (HKEx: 941; NYSE: CHL), which would like to see such licenses issued sooner rather than later. Chinese media are now quoting an official from the regulator at an event this week saying that 4G licenses will be awarded when the technology is “mature.” (Chinese article) He then goes on to say how China Mobile has launched expanded trials for its 4G standard, TD-LTE, in six major cities, and that results so far have been promising. I sense a definite shift in this quote from the ministry’s previous stance, in which it indicated it wanted to wait for new 3G systems launched two years ago by the country’s 3 telcos, China Mobile, China Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHA), to gain traction before awarding 4G licenses. Industry watchers will know that China Mobile has been rapidly losing share in the 3G market after being forced to use a homegrown wireless standard, TD-SCDMA, that lacks maturity and a wide range of smartphones to make it attractive to most consumers. It has been lobbying hard for the regulator to let it roll out a 4G system, based on more widely used technology, and these latest comments seem to indicate the regulator might issue a 4G license to China Mobile first if it feels TD-LTE is ready for commercialization. If that happens, I could see China Mobile receiving a 4G license in as little as a year from now, which could provide a boon to telecoms equipment makers like Ericsson (Stockholm: ERICb), Huawei, ZTE (HKEx: 763; Shenzhen: 000063) and Alcatel Lucent (Paris: ALU), and could help China Mobile regain some of the momentum it has lost to Unicom and China Telecom.

Bottom line: A subtle shift in comments from the telecoms regulator indicate a softening stance toward the issuance of 4G licenses, paving the way for China Mobile to get one such license in as little as a year.

今年早些时候，中国电信监管部门多次表示，至少在未来2-3年内不会发放4G牌照，但现在其口风出现微妙的变化，无疑是受到中国移动<0941.HK>的压力。该公司希望能早点发放4G牌照。  中国媒体援引监管部门一官员在本周一次活动上的话报导称，4G牌照何时发放取决於技术的成熟度。接着他还介绍了在中国六大城市开展的TD-LTE规模试验，并表示测试效果良好。我从这名官员的发言中察觉到工信部立场与此前相比发生了变化。之前工信部曾表示，希望中国三大移动运营商中国移动、中国联通<CHU.N>和中国电信<CHA.N>推出的3G网络强化後再发放4G牌照。业内观察者将会注意到，因使用中国自己的TD-SCDMA无线网络标准，中移动在中国3G市场的份额正迅速流失。中国移动一直在努力游说工信部，允许其推出4G系统，工信部官员近期言论似乎暗示，如果该部觉得TD-LTE商业化时机成熟，或会首先向中国移动发放4G牌照。如果是这种情况，我认为，中国移动最短在一年内就可拿到4G牌照，这对爱立信<ERICb.ST>、华为、中兴通讯<000063.SZ><0763.HK>和阿尔卡特-朗讯（Alcatel-Lucent）<ALUA.PA>等电信设备制造商将是利好，并可能有助於中国移动夺回中国联通和中国电信抢走的部分市场份额。

一句话：工信部官员口风的微妙转变暗示，该部在4G牌照发放问题上的立场软化，中国移动有望最短在一年内获得4G牌照。

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