Aggregated China Business Blogs



China Mobile’s Feet Begin to Feel Warm

Aggregated Source: Catching Mice in China
June 30, 2008|

Marbridge Daily reports:

China Mobile (NYSE: CHL; 0941.HK) president Wang Jianzhou revealed that China Mobile has been working on the takeover of TD-SCDMA networks in Qingdao and Baoding, and will complete the process before the Olympics.

To date, China Mobile has invested RMB 15 bln on TD-SCDMA networks and built 14,688 base stations. The HSDPA upgrade of TD-SCDMA networks has been largely completed, but HSDPA terminals remain in short supply.

China Mobile Planning Department GM Dong Xin, in charge of TD-SCDMA construction, said that the coverage of TD-SCDMA networks has reached 95% that of 2G networks. Dong also revealed that China Mobile will add another 500 base stations before the 2008 Beijing Olympics, bringing the total to 18,000 by the end of 2008. He also said that China Mobile plans to procure a total of 300,000 TD-SCDMA terminals before the Olympics.

So far, 4 TD-SCDMA manufacturers have been allowed by China Mobile to sell TD-SCDMA handsets in over 150 China Mobile outlets in 8 cities. The number will increase to 500 (accounting for 50% of the total outlets in those cities) before the Olympics.

China Mobile Marketing Department Deputy GM Lu Wenchang said that to help motivate sales, besides paying normal distribution fees, China Mobile gives another 10% of the price as rebate to its TD-SCDMA distributors. It also gives 1/3 of the handset price to the TD-SCDMA manufacturers as subsidy.

Wow, quite a laundry list of accomplishments, incentives, and support. I wonder what all the shouting is about? Pacific Epoch:

Ministry of Industry and Information (MII) director Li Yizhong has ordered China Mobile (NYSE: CHL, 941.HK) to report daily to the MII on the development of TD-SCDMA projects, reports IT-Times citing unnamed sources. According to the report, Li has asked China Mobile to provide specifics including exact timelines and names of people involved in solving any problems that are discovered.

Nothing like having the feet in the fire to make sure things get done. With the Olympics less than six weeks away, MII wants to ensure there won’t be a mobile bellyflop.

China Mobile intends to donate 100,000 TD-SCDMA terminals complete with UIM cards, RMB 180 in mobile fees, and six Olympic functions to volunteers serving at the Beijing Olympics, reports The Beijing News quoting China Mobile chairman and CEO Wang Jianzhou.

…Wang said 20,000 TD-SCDMA terminals will be reserved for foreign traveler experience, and details on TD-SCDMA handset rentals, targeting foreign Olympic spectators, will be released in July. China Mobile partnered with Samsung to donate 15,000 TD-SCDMA handsets and RMB 3 million in mobile fees to the Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG) on April 28.

Well that’s 135,000 phones right there. I guess when you build it people really do come. That most of them aren’t actually paying is a minor point.

After spending RMB15 billion (an incredible number, especially if it’s true - over US$2 billion), I would guess the giveaways, loans, and services amount to chump change.

I don’t think I’ll make it to the Olympics, but maybe I can rent a phone and watch it.

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