The Chinese high street is the setting for a fight for control of the country's telecommunications sector, involving China Mobile, China Telecom and China Unicom.
The Chinese high street is the setting for a fight for control of the country's telecommunications sector, involving China Mobile, China Telecom and China Unicom.

China's mobile phone industry has become a battleground between service providers and technology firms



As they battle for supremacy in the mobile phone industry, two of China's most powerful technology firms are set to square up against each other in court.
Huawei, which has secured a series of contracts with overseas telecommunications operators, began legal action in Europe against rival ZTE over alleged infringement of intellectual copyright regarding mobile broadband data cards.
Not to be outdone, ZTE counter-sued, this time in China, demanding compensation and warning it would also take action outside the country.
Away from the courts, the Chinese high street is the setting for an equally fierce fight for control involving the country's three main mobile phone service providers, China Mobile, China Telecom and China Unicom.
These three have locked horns as they compete to become the dragon economy's leading provider of 3G services, and are spending heavily on subsidies for handsets to attract customers.
Although 3G has yet to excite the public, the basic mobile phone is nonetheless becoming even more popular in the country.
In March, figures showed an extra 19.8 million mobile phone subscriptions were added, taking the total to 878.8 million.
Even China's modestly paid migrant and rural workers are getting on board the mobile bandwagon, although revenues per user are suffering because they are subscribing. Against this backdrop, the number of fixed-line subscriptions is falling fast as people turn to mobiles.
China's 3G story dates back to 2009, when the ministry of industry and information technology assigned licences to the country's three operators. By the end of that year, there were only about 7 million subscriptions, just 1 per cent of mobile users at the time.
Since then, things have picked up, but the feeling remains that 3G has not caught on as hoped. Among the three operators, none has developed such a dominant position that it can be described as having won the race.
In China, each operator uses a different technology platform.
Third place is occupied, at least for the moment, by China Telecom, which offers services based on CDMA2000 technology that originated in the US. In March, China Telecom added 1.61 million 3G subscribers, bringing its total to 16.4 million.
China Unicom, which uses W-CDMA technology derived from Europe, is just holding on to second place. At the end of March it had 18.5 million 3G subscribers, after securing an extra 1.08 million that month.
China's current 3G leader is China Mobile, which had 27 million users signed up to the domestically developed TD-SCDMA platform at the end of March, with the company having recorded 2.45 million new subscribers in a month.
These figures give China 61.9 million 3G users, which works out at a less-than-impressive 7 per cent of the total mobile population.
For comparison, even three years ago the UK, for example, had 10.8 million 3G subscribers, which at the time was 15 per cent of the total subscriber base, while averaged across Europe the figure was about 11 per cent.
According to Lei Shi, a telecommunications specialist based in Beijing at the consultancy BDA, 3G "has not taken off" in China.
While 3G network problems have by no means been unique to China, Mr Shi believes they remain a reason why take-up has been modest. Even in the central business district of China's biggest cities, he says, coverage can be patchy. "3G network coverage is not good," he says.
The lack of availability in China of attractive 3G handsets from top international manufacturers has also held back the expansion of the technology, Mr Shi believes. However, no one could accuse the operators of being half-hearted in their attempts to attract 3G customers, who generate more revenue users with more basic mobiles.
In the first quarter of this year, China Unicom reported profits dropped by 166 million yuan (Dh93.8m), down 86 per cent from the same period last year, with analysts attributing the decrease to subsidies on 3G handsets.
The modest achievements of 3G in China raise questions about what the reception will be like for 4G technology, which allows data to be transmitted at much higher rates.
According to state media reports, the information technology ministry has given permission for China Mobile to begin 4G trials, although these are not scheduled to begin for more than a year.
"In China the mass market is still 2G and all the three Chinese operators have invested a lot of money in deploying 3G networks," Mr Shi says.
"It will take them three to five years to get a profit from 3G, so for 4G I don't think they will have an aggressive attitude to deploy this technology in China, except China Mobile."
China Mobile is more enthusiastic, he suggests, because its 3G technology is less mature than that of its two main rivals, making it keen to move on to 4G.
"In 2G, China Mobile is the distinct leader, but in 3G it has seen China Telecom and China Unicom catch up. So China Mobile wants to use 4G to get back their advantage in the market," Mr Shi says.
"For 4G … they have to rebuild their network. For this, China Mobile has an advantage because they have much more cash, but it's hard to say they will be successful. The 4G market will take off in three to five years at least in China."
business@thenational.ae

Zombieland: Double Tap

Director: Ruben Fleischer

Stars: Woody Harrelson, Jesse Eisenberg, Emma Stone

Four out of five stars 

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Premier Futsal 2017 Finals

Al Wasl Football Club; six teams, five-a-side

Delhi Dragons: Ronaldinho
Bengaluru Royals: Paul Scholes
Mumbai Warriors: Ryan Giggs
Chennai Ginghams: Hernan Crespo
Telugu Tigers: Deco
Kerala Cobras: Michel Salgado

Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

Normal People

Sally Rooney, Faber & Faber
 

Company%20profile
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COMPANY%20PROFILE
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MATCH INFO

Uefa Champions League semi-final, first leg

Barcelona v Liverpool, Wednesday, 11pm (UAE).

Second leg

Liverpool v Barcelona, Tuesday, May 7, 11pm

Games on BeIN Sports

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
 
 
 
 
 
 
 
COMPANY%20PROFILE
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ADCC AFC Women’s Champions League Group A fixtures

October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA

COMPANY PROFILE
Name: Airev
Started: September 2023
Founder: Muhammad Khalid
Based: Abu Dhabi
Sector: Generative AI
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
 
UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

VEZEETA PROFILE

Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC