Monday, October 25, 2010

Heat 3G operators increasingly difficult battle new user



The three major telecom operators the latest user data in October showed their ruthless competition in the development of new customers is increasingly difficult to attract new customers at all costs may have to pay the price future profits.

China Mobile (00941.HK) 10 month added 5.099 million customers, added over the previous few months have once again a marked decline in the number of users, but higher than the record low 4.5 million. China Mobile president Wang believes that the economic recovery driven by mobile data such as call volume has returned to the level before the global economic downturn.

China Mobile's total number of users and new users are still firmly dominate. To 10 at the end, China Mobile's new subscribers this year to reach 56.216 million, a total of 513 million users, while China Telecom (00728.HK) only 49.92 million, China Unicom (00762.HK) to 140 million.

However, China Telecom's CDMA subscriber growth appeared in a record this month, reaching 3.14 million, which took over the CDMA network of telecommunications subscriber growth has been the fastest month, showing that growth is accelerating telecommunications users.

10 month, China Telecom's new CDMA users has reached 22.01 million, but this is the beginning of China Telecom added 30 million users set goals there is still a gap, if China Telecom hopes to complete the task, and the remaining two months, the monthly average of new users will be more than 4 million.

The increase was mainly dependent on the user's high mobile phone subsidiary of China Telecom. Third quarter results announcement, China Telecom chairman Wang Xiaochu has said the phone the first half of the amount of subsidies from 30% to 35%, while the Beijing telecommunications even the amount of subsidies increased to 70%, and behind the user to the telecom growth bring a major test of profitability.

In addition, China Telecom and China Unicom, the number of fixed phone users continues to decrease. China Telecom's fixed line subscribers decreased by 146 million, a decrease of 947,000 China Unicom, China Telecom and China Unicom total fixed telephone users this year were 193 million and 106 million, the annual loss of more than a thousand million users.

3G user growth, as operators in a highlight performance. After nearly a year of publicity and deliberation, 3G subscriber growth begins. In addition to China Telecom has not disclosed the total number of users of 3G subscribers, China Unicom, the first time this month, the number of 3G users to join the statistics. To 10 at the end, China Unicom's 3G subscribers reached 1.021 million. China Unicom Chairman Chang Xiaobing estimated that next year growth of China Unicom's 3G users will reach 1 million every month. This means that the future of China Unicom's new 3G users will exceed the new 2G users per month, may also be beyond the other two 3G operators to become a user of the fastest growing.

China Mobile 3G subscriber growth also ushered in the largest one-month, in October China Mobile's 3G mobile phone users increased by 654,000, which is the development of 3G has the best record, reaching 328,000 in September twice.

Wang said that with the introduction of more TD in the low-end mobile phone users will grow further. However, to complete the TD before the end of next year at least 50 million of the target users, China Mobile still need to make a desperate try.







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