China Mobile’s slide is in part the government’s doing. When Beijing issued 3G licenses in 2009, it forced the national champion to use a locally developed technology called TD-SCDMA. Chinese regulators hoped the homegrown standard would give an advantage to domestic technologists while reducing royalty payments for foreign-owned patents. But in a nod to practicality, the same year they let China Unicom and China Telecom start building their 3G networks using the world’s two most common standards.
Global chipmakers and phone manufacturers are reluctant to design components for a technology that looks to be a dead end. Qualcomm (QCOM), for instance, makes chips for several 3G phones sold in China but won’t offer one that works with China Mobile’s network until later this year. As a result, China Mobile subscribers can’t use the iPhone or many popular Android phones, and the carrier’s own selection of handsets is “boring, ” says Mark Natkin, managing director of Marbridge Consulting in Beijing. There are fewer apps and glitchier service. “It’s just a less mature standard, ” says Natkin.
Stripping some power from China Mobile may have been the intent of regulators. The government controls the three major cellular operators and wants them more evenly matched, says Paul Wuh, an analyst in Hong Kong with Samsung Securities. “China Mobile’s mission in life now is to lose market share gracefully, ” he says.
China Mobile will have another chance to extend its lead, when the country begins its transition to the next generation of mobile network, dubbed 4G. China Mobile has gotten permission from regulators to use TD-LTE, a technology standard in use globally. It’s still years away from being ready, though. For the time being, highflying China Mobile will continue to coast back to earth.
The bottom line: In 3G, China Unicom and China Telecom have gained ground against China Mobile, which has 40 percent of the market.
Einhorn is Asia regional editor in Bloomberg Businessweek’s Hong Kong bureau. Follow him on Twitter @BruceEinhorn.
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Usa military pentagon rips off iraqi muslims2010-07-27 10:23:04 by good-for-usa
those ingrate iraqi's gave their contracts to russia & china instead of america. the military industrial complex also ripped off the usa taxpayers two trillion in missing cash during thief bush/cheney haliburton reign. the iraq war was all about oil somehow. wall street speculators keep usa gasoline prices up to $3 a gallon when in reality it should be 99 cents/gal. all usa food prices etc is manipulated & ruined by past agriculture secretary under nixon & ford earl butz. thats why we have monsanto genetic engineered toxic food in usa
Apple Shipping Low-Cost iPhone to China Mobile — Mac Rumors
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