Bottom line: After a slow start, China’s VNO program is picking up momentum, with new operators poised to sign up a collective 50 million in total subscribers as soon as the middle of next year.
VNOs gain momentum
After a decidedly slow start in their first half year of life, China’s young crop of virtual network operators (VNOs) are starting to show some new signs of momentum, including a boost with the new awards of licenses to leading online video site Youku Tudou (NYSE: YOKU) and fast-rising smartphone maker Xiaomi. The VNO program is part of Beijing’s efforts to breathe new life into the telecoms services sector by opening it up to new private operators that can compete with the big 3 state-run telcos. But the program has been plagued with glitches since the first new services launched in the spring, with the result that progress has been slower than expected. Read Full Post…
Bottom line: China could have as many as 400 million 4G subscribers by the end of next year, as the nation’s 2 smaller carriers join China Mobile in offering aggressive promotions starting in January.
4G to explode in 2015
After a period of relative quiet following the iPhone 6’s delayed China launch last month, we’re seeing a sudden flurry of news on the development of 4G service in China. None of the headlines are unexpected, but they do collectively point to a coming explosion in 4G service in 2015. Leading the headlines are reports that the telecoms regulator will give 4G licenses to China’s 2 smaller telcos, China Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHA), by the end of this year. At the same time, another report is giving the latest national 4G figures, and yet another headline details Unicom’s aggressive 4G plans for 2015. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 6. To view a full article or story, click on the link next to the headline.
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GM (NYSE: GM) China Sales Expand at Slowest Pace In 20 Months (English article)
China’s MIIT To Issue FDD-LTE 4G Licenses In December- Source (English article)
Gap (NYSE: GPS) Brand Surpasses 100 Stores In Greater China Region (Businesswire)
NetEase (Nasdaq: NTES) To Shutter Microblogging Service (Chinese article)
Sony (Tokyo: 6753) Mobile China Layoffs To Reach 700-800, Denies Leaving Market (Chinese article)
Latest calendar for Q3 earnings reports (Earnings calendar)
The following press releases and media reports about Chinese companies were carried on October 25-27. To view a full article or story, click on the link next to the headline.
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China Mobile (HKEx: 941), Alibaba (NYSE: BABA) Partner on Fetion – Source (English article)
HP (NYSE: HPQ) Said To Seek Buyer For Majority Stake Of Chinese H3C Unit (English article)
Several significant telecoms stories are buzzing through the headlines as China returns to work after a long holiday, led by news that iPhone sales have gotten off to a roaring start after initially hitting a regulatory roadblock in the world’s largest mobile market. Also of interest is word that China and the European Union are close to settling a long-running dispute that could give European networking equipment makers better access to the lucrative Chinese market. And finally there’s a bit of regulatory news that looks like a positive sign, showing China is trying to cut its vast bureaucracy to provide easier market access for makers of telecoms products. Read Full Post…
Two news stories in the telecoms space reflect the obstructionist role that the country’s big 3 telcos often play when it comes to boosting competition in their tightly regulated sector. The first story involves moves by the regulator to revive its sputtering program to juice up the sector with competitive products offered by dozens of recently licensed virtual network operators (VNOs). The second story involves the glacially slow progress in “number portability” — a years-old initiative that would encourage more competition by allowing consumers to keep their old mobile phone numbers when changing carriers. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 24. To view a full article or story, click on the link next to the headline.
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After Delay, Microsoft (Nasdaq: MSFT) Xbox One China Launch Set For Sept 29 (English article)
Jack Ma Becomes China’s Richest Man, Lei Jun Enters Top 10 – Hurun Report (Chinese article)
iPhone 6 Still Being Reviewed, Results Expected Shortly – MIIT Chief (Chinese article)
Shanghai Gov’t Requires Officials To Use Domestic Brand Smartphones (English article)
Shunfeng (HKEx: 1165) 500 Mln Yuan Ningxia Solar Power Station Hits Obstacle (Chinese article)
With Alibaba’s blockbuster IPO nearly in the past, attention will turn over the next few weeks to tech giant Apple (Nasdaq: AAPL) and the mystery surrounding the lack of a launch schedule for its new iPhone 6 in China. While Alibaba is a story of hype, the iPhone 6 saga is quickly becoming a tale of intrigue, as everyone tries to guess what’s happening behind the scenes to delay this other highly anticipated event. China’s own media are helping to fuel the suspense, with a new report from the Xinhua central news agency providing clues about what looks like a tangle with China’s censors. Read Full Post…
Now that Apple’s (Nasdaq: AAPL) unveiling of its new iPhone 6 is finally in the past, we can finally sit back and take a look at the specifics of the company’s launch plan for China. The only problem is that there isn’t any such plan yet, even though China is now one of Apple’s largest global markets. Instead, there seems to be lots of confusion about when the newest iPhone will officially go on sale on the Chinese mainland.
I can partly sympathize with Apple, as I’m nearly certain the latest confusion is the result of Chinese bureaucracy that’s impossible to control. But at the same time, this kind of sloppy move will only further undermine Apple’s reputation, which is already under regular attack by central Chinese media that are constantly looking for new ways to find fault with this trendy but secretive company. Read Full Post…
People like myself who were holding out big hopes for a new crop of private firms challenging the 3 big state telcos will be disappointed to learn that the group of virtual network operators (VNOs) are off to a glacially slow start, boding poorly for the program. It’s obviously way too early to call the program a failure, since it’s only 3 months since the first private VNOs were launched. To consumers these VNOs look the same and offer similar services to the 3 existing state-run telcos. But the VNOs don’t actually own any telecoms networks, and instead must lease network capacity from the traditional carriers. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 26. To view a full article or story, click on the link next to the headline.
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German Car Parts Suppliers Asked To Form JVs In China: Stuttgarter (English article)
Taobao, Vanke (HKEx: 2202) In Property Selling Initiative (Chinese article)
China Mobile (HKEx: 941) Announces Interim Results (HKEx announcement)
Hunan Satellite TV Spends 1 Bln Yuan To Support Mango TV (Chinese article)
MIIT Issues Third Batch Of VNO Licenses To 6 Recipients (Chinese article)
