According to Market Watch, rumor has it that China Mobile Ltd. has indeed come to a consensus with Apple Inc. on using its fourth-generation technology on iPhones in the China Mobile network. The company’s chairman Mr. Wang Jianzhou claims the talks are ongoing and Apple has not yet commented on the rumor but many still claim the negotiations are farther along than previously perceived.
The adoption of 4G technology and the iPhone are both part of China Mobile’s plan to diversify its offerings through value-added services. According to Chairman Jianzhou, the company also plans to expand outside of China and break into emerging markets such as Myanmar and Taiwan.
Currently, China Mobile has around 600 million mobile phone subscribers worldwide, making it by far the world’s largest mobile operator. The iPhone is currently available in China as part of the China Unicom (Hong Kong) Ltd. Network with around 4 million users already on board, which will only multiply if and when China Mobile offers the technology.
As far as global expansion goes, this isn’t China Mobile’s first foray into emerging markets as it invested the equivalent of over $300 million USD in Pakistan last year. Although China Mobile has seen some success within Pakistan signing up 10 million subscribers, not all attempts to break into overseas markets have been successful.
Its overseas strategy has not been without problems as China Mobile was put on hold by the Taiwanese government in its hopes to purchase 12 percent of Taiwan’s Far Eastone company. Chairman Jianzhou spoke of the expansion plans after a shareholders’ meeting when he told reporters “If we can break even next year that will certainly give us more confidence to invest in emerging markets.”
The chairman added the company would not be issuing new shares if it decided to list A-shares in China, but declined to elaborate. He said, “We don’t need the money. We have enough cash.”
Aside from expanding globally, China Mobile plans to spend around 10 billiion yuan ($1.5 billion USD) within China to expand its WiFi network, a move designed to attract more users with value-added mobile services. Since China Mobile’s average revenue per user fell to 67 yuan ($10.27 USD) in the fourth quarter of 2010, it has since seen a 5.4 percent rise in the first quarter of 2011, or 26.9 billion yuan net profit ($4.1 billion USD).
China Mobile plans to start commercial trials of the 4G technology in a time-division long term evolution plan, or TD-LTE, by next year.
(Via Reuters)
