Also, as more Chinese telecom companies, such as China Mobile and China Telecom, jump in on the opportunity to tap the growing demand for data-intensive plans that iPhone users are likely to use, they will try and subsidize the smartphones for their consumers in return for long-term contracts.
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The telecom industry in China has seen steady growth as even competitors China Mobile and China Telecom saw growth in their subscriber base.
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The growing Chinese demand for smartphones bodes well for Chinese telecom companies such as China Mobile, China Unicom and China Telecom and will also benefit handset makers.
The growing Chinese demand for smartphones, while a good sign for handset makers, also bodes well for Chinese telecom companies such as China Mobile, China Unicom and China Telecom.
At the same time, it is also a huge opportunity for the incumbent Chinese telecom providers such as China Mobile, China Unicom and China Telecom to tap their huge 2G subscriber base and drive the demand for the more lucrative 3G data services.
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Hence, MII will certainly lobby China Mobile, China Unicom and China Telecom (the three Chinese mobile carriers) to push handset suppliers like Lenovo and Huawei (plus other OEMs for new tablets, auto apps, TV set-top boxes) to adopt new Chinese mobile platforms.
This was unusual: China Mobile is the largest mobile telecom operator in the world (more than 522 million subscribers as of March 2010), and it was not used to NOT having its way in business negotiations with any company.
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For sure we know that if this offer had come from China Mobile or China Telecom, it would have been dead on arrival.
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While Apple already has deals with two Chinese mobile operators - China Unicom and China Telecom - it is yet to strike a partnership with China Mobile, the biggest operator in the world in terms of subscriber volume.
China Telecom is an integrated telecom service provider of China offering both mobile and landline services.
China Unicom added 3.25 million 3G customers in November 2012, while China Telecom and China Mobile were at 3.11 million each.
But with about 230 million and 150 million subscribers, respectively, China Unicom and China Telecom are dwarfed by China Mobile, which is hoping to move its subscribers en masse to faster 3G and LTE networks next year.
At the same time, it is also a huge opportunity for the incumbent Chinese telecom providers such as China Unicom, China Telecom and, especially, China Mobile to tap their huge 2G subscriber base and drive the demand for the more lucrative 3G data services.
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The three flavors are known as 802w, 802t and 802d, each heading to China Unicom (WCDMA), China Mobile (TD-SCDMA) and China Telecom (CDMA), respectively.
China is the largest mobile subscriber market in the world and China Telecom has about 106 million subscribers.
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With this convergence of mobile and landline businesses, China Telecom hopes to achieve long term growth by increasing its subscriber base, establishing its market position as well as gaining competitive advantage.
But the scale of the threat was highlighted earlier this week when the chairman of China Mobile - the world's largest telecom carrier - said his firm was now more concerned about the challenge posed by Microsoft's Skype and Tencent's WeChat services than it was about competition from China's rival mobile networks.
The9, established in 1999 as one of the leading game developers and operators in China, has stepped into the mobile internet field and now working with major telecom carriers and application distribution channels in China with high speed growth.
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But China Mobile, the result of a split from China Telecom in 1999, does not, and analysts believe it is likely to stay focused on the wireless end of the market.
As with many phones in China these days, the device in question supports dual-SIM connectivity -- the screenshots indicate that it's connected to China Telecom's CDMA2000 network and China Mobile's 2G network simultaneously.
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While the arrival of the iPhone on China Mobile could potentially be a huge blow to China Telecom, it is a good sign that the carrier is not banking on the popular smartphone alone to drive 3G adoption.
Nokia has already launched the Lumia 800C, announced the cheaper Lumia 610 on China Telecom, and has roped in China Mobile as well for its WP8 plans. 3G penetration is still at a lowly 20% in China, and the carriers there are actively trying to transition their huge 2G base to 3G.
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China Telecom has also been helped by the fact that China Mobile currently runs its 3G network on a homegrown proprietary TD-SCDMA standard that is not compatible with many smartphones.
FORBES: China Telecom's Ready To Ride The 3G Revolution In China
Nokia has already launched the Lumia 800C and announced the cheaper Lumia 610 on China Telecom, and is rumored to have roped in China Mobile as well for its WP8 plans. 3G penetration is still at a lowly 18% in China, and the carriers there are actively trying to transition their huge 2G base to 3G.
That could make Google attractive in Asia and other fast-growing markets, with China Mobile (nyse: CHL - news - people ) and Orange Telecom--which has a large presence in the developing world--likely to become Google partners.
Low 3G penetration of about 15% in China is giving smaller wireless carriers such as China Telecom ample opportunity to compete on an even ground with the otherwise dominant China Mobile.
FORBES: China Telecom's Ready To Ride The 3G Revolution In China
China Mobile will absorb the loss-making China Railway Communication (also known as China Tietong, or Tietong Telecom), making it an independent, fully owned subsidiary.
With close to 670 million subscribers, China Mobile is the largest wireless carrier in the world and has almost six times as many subscribers as China Telecom.
FORBES: China Telecom's Ready To Ride The 3G Revolution In China
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