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Telecommunications giants fight for China's mobile phone market

posted 13 Jul 2013, 05:04 by Mpelembe Admin   [ updated 13 Jul 2013, 05:05 ]

 China-Mobile Internet -- Telecommunications giants fight for China's mobile phone market

 China Central Television (CCTV) - China's telecommunication giants have been fighting intensively for more market share in the country's mobile phone market, the world's largest by the number of users.

The latest statistics from the Ministry of Industry and Information Technology (MIIT) showed that the number of mobile phone users in China increased by 53.08 million from January to May to a total of 1.165 billion.

Of all the mobile phone users, the number of mobile Internet users reached 813 million by the end of May, or about 69.8 percent of the total, which means that seven out of every 10 mobile phone users have access to the Internet via their phones.

With the rise of the mobile Internet, the competition among telecommunication operators worldwide for mobile terminals has intensified, especially the market share of smartphone which is a major mobile web carrier.

"During the past fiscal year, we sold a total of 28 million smartphones. We hope that the number would be 40 million for this year," said Wei Jianglei, vice president ofLenovo Group, a Chinese multinational technology firm.

"We hope that the number of our smart terminals to be sold this year will account for 80 percent of the total, while the number of the middle- and high-end products will account for 20 to 25 percent," said Liu Lin, vice president of ZTE Corporation, a Chinese multinational telecommunications equipment and systems company and the world's fourth-largest mobile phone manufacturer measured by 2012 unit sales.

According to statistics by the MIIT, the number of smartphones sold in China from January to March exceeded 7,500.

Of all, the number of those made by Samsung accounted for 17.3 percent, ranking the first, which was followed by Lenovo Group with 13.1 percent, Coolpad, Huawei Technologies, ZTE Corporation, and Apple's iPhones ranked the sixth.

China's leading telecommunication operators said that next they will shift their attention to the middle- and high-end mobile phone segment which has long been dominated by foreign companies.

Meanwhile, major Chinese telecommunication companies also focus on the development of the 4G technology, hoping to further expand the mobile Internet market by luring more customers with an increased Internet speed.

China Mobile, a Chinese state-owned telecommunication company and the world's largest mobile phone operator by the number of subscribers, recently invited a public bidding for the main wireless network equipment of the Time-Division Long-Term Evolution (TD-LTE), a 4G mobile telecommunications technology and standard.

The equipment, which involves 207,000 base stations across 31 provinces and cities in China with an estimated total revenue of more than 20 billion yuan, signifies the beginning of China's 4G network construction.

"From the perspective of the national economy, there is no over-capacity within the telecommunication industry. China Mobile has already started the large-scale 4G network construction this year which still has room for an increase in investment," said Zhou Mingwei, a researcher on the telecommunication industry at the research institute of Xiangcai Securities.

Affected by the 4G network construction, stock index of telecommunication equipment companies, such as ZTE and Fiberhome Technologies Group, inChina's yuan-denominated A-share market recently shored up.

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