Update: Since originally writing this, the MIIT has finally formally issued 4G licenses, allowing each of the 3 major telcos to operate a service based on the homegrown TD-LTE standard. China Mobile will formally launch service on December 18.
It’s a new day, so I figured that’s a good enough excuse to write about the latest 4G wireless services rumors, which seem to be coming almost daily at this point. The newest rumors look a bit sexier than other recent chatter, this time unveiling the brand name industry leader China Mobile (HKEx: 941; NYSE: CHL) will use for its new service, and also adding the company will finally offer an Apple (Nasdaq: AAPL) iPhone for the network when it formally launches service later this month. Word of the actual launch date, in this case December 18, was probably the least interesting news in this latest report. That’s because every report I’ve read these last few months nearly always contains a launch date that is ultimately incorrect, and there’s no reason to believe that this new report will break that trend. Read Full Post…
Next year is set to become the year of 4G in China, with the nation expected to spend well over 100 billion yuan ($16.4 billion) on new mobile networks that offer lightning-fast data speeds for mobile subscribers. The spending bonanza marks an excellent chance for China to show its commitment to free trade, after many were disappointed when foreign companies received only a small fraction of the business in a major series of contracts back in August. Read Full Post…
I’ve largely ignored most recent reports speculating on the imminent awarding of 4G wireless telecoms licenses, which has been rumored for most of this year but never seems to happen. But the latest flurry of news seems to indicate that licenses are finally on the cusp of coming, with one report saying they could even arrive on Thursday, which is today. (Chinese article) I won’t comment too much on the exact timing, though this particular set of reports does seem more credible than previous ones, leading me to predict we could see some news either this week or next. Read Full Post…
Sometimes it seems like I’m living in slow motion when I write about China telecoms, since major developments in the sector often drag on for months past their expected launch dates. That’s been the case for 3 major new initiatives that could inject important new life into the space, even though rumored launch dates for all 3 have passed numerous times. The latest news bits on all 3 indicate things are still moving ahead, meaning perhaps we will someday soon see the announcement of licenses for 4G mobile service and new virtual network operators (VNOs), as well as the launch of a new national broadband network operator.Read Full Post…
China smartphone market quickly becoming saturated
Let’s end the week with a look at some new data on China’s cellphone market, which is quickly becoming saturated with cheap smartphones cranked out by a crowded field of domestic companies. The rush by Chinese firms into the smartphone market over the last 2 years is typical of the herd mentality one often sees in China, almost always leading to classic boom-bust cycles. The smartphone sector was already showing signs of overheating when media reported during the summer that inventory was building up at many smartphone makers. Now the latest figures are showing that sales are slowing sharply for many of those firms, hinting a bust could come soon for players that rely heavily on the domestic market. Read Full Post…
We’re rapidly running out of days in October for 2 major telecoms developments that many were expecting this month, namely the awarding of new licenses for 4G wireless service and for new telecoms service providers known as virtual network operators (VNOs). There are still 10 days left in the month, so it’s possible that one or both could still happen. But the usual delays could mean we may not see any major announcements for a little while longer. Meantime, media are reporting some new information on a timetable for the VNO roll-out; and in another major development that could shake up the status quo, media are also saying that leading wireless telco China Mobile (HKEx: 941; NYSE: CHL) could soon get a license to offer fixed-line telecoms services. Read Full Post…
China’s unruly markets for emerging sectors are famous for Trojan Horses, which often come as hidden traps in many products and services that ultimately harm consumers. The nation’s tourism authority just launched a new law to eliminate such traps in the travel sector, and now we’re getting word that the telecoms regulator is preparing a similar move against hidden and sometimes malicious apps that often come pre-installed on many new smartphones. This new crackdown will help to rid the market of such unwanted apps, such as ones that provide users’ personal data to third-parties without the users’ knowledge or consent. But the move could also ultimately drive up smartphone prices and perhaps even drive some companies out of business. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 16. To view a full article or story, click on the link next to the headline.
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Alibaba Posts $700 Mln Profit, $1.7 Bln Revenue In Q3 (Chinese article)
Shanghai’s Second, Third Largest Media Groups To Merge (English article)
MIIT To Implement App Pre-Installation Regulations (English article)
US Retailer Gap (NYSE: GPS) Uses “Market Mapping” Strategy In China (Chinese article)
Gaopeng Won’t Support Losers, Reportedly Making Big Layoffs In Chengdu (Chinese article)
China’s telecoms regulator has just made an interesting move that indicates leading telco China Mobile (HKEx: 941; NYSE: CHL) may get a much shorter head start than previously expected over smaller rivals China Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHA) in the nation’s migration to 4G wireless service . The move looks potentially significant to me because it also comes as the regulator, the Ministry of Industry and Information Technology (MIIT), is also preparing to issue its first batch of 5 or 6 virtual network operator (VNO) licenses, which will create much needed new competition for the 3 existing state-run telcos. Read Full Post…
I’ve been writing with growing frequency about the impending release of 4G mobile licenses, as local media report almost weekly on the latest developments in this highly anticipated event. The latest reports aren’t all that exciting, citing a regulatory source saying rumors that licenses will be issued this month are most likely untrue. Meantime, leading telco China Mobile (HKEx: 941; NYSE: CHL) doesn’t seem to care about the actual release date, and has already started its own aggressive campaign for advance sign-ups of 4G subscribers in major cities like Shanghai. Amid all this buzz, I thought I’d also take a look at what’s ahead for 4G once it actually launches, as I do see a rather bumpy road for the technology in its first year. Read Full Post…
Beijing took an important step towards rejuvenating the global solar panel sector last week when it announced new steps that will strictly limit new plant construction. This kind of government-led approach is a good short-term solution, as it will halt the introduction of new supply, which in turn will allow prices to stabilize after more than 2 years of steep declines caused by massive overcapacity. Read Full Post…
