China Unicom yesterday launched data services based on the GPRS
standard, which could give the company a leg-up in the booming
value-added telecoms service market.
The GPRS data services will enable Unicom's GSM users to surf
the mobile Internet, send MMS (multimedia messaging service)
messages and download data, including music, using their mobile
phones.
Unicom, the smaller of China's two cellular operators, has been
operating cellular networks based on second-generation (2G) mobile
telephony standards, GSM and CDMA.
The CDMA networks have already been upgraded to the high-speed
CDMA1x-2000, usually billed as a 2.75G service, which offers users
a number of data services, such as mobile Internet access and
MMS.
But its GSM subscribers could only make voice calls and send
short text messages.
An upgrade from GSM to GPRS, a 2.5G mobile technology, could
boost the competitiveness of Unicom's GSM networks, said company
vice-president Li Gang.
The upgrade marks Unicom's shifting focus from the CDMA service
to GSM networks. The company has been investing heavily on CDMA
networks to snap up subscribers from its larger rival, China
Mobile, while investing little in its GSM networks.
Since last year, however, Unicom has stepped up its investment
in GSM networks.
Some industry observers say this is as a sign Unicom might sell
its CDMA networks to fixed-line carrier China Telecom and focus
solely on GSM services.
China Telecom Chairman Wang Xiaochu has publicly expressed
interest in buying one of Unicom's two cellular networks. Unicom
denies it is in talks to sell to the operator.
Rumors suggest Unicom will scale down or cease investment in
CDMA networks this year. Li denied the reports, saying Unicom will
continue its investment, but would not elaborate.
He added that the GSM service offers much untapped potential for
Unicom.
Hong Kong-listed Unicom had 110 million GSM subscribers by
March, an increase of 16 percent year-on-year. The number of CDMA
subscribers totaled 37.7 million by March. China Mobile had 316
million subscribers by March.
Unicom's GPRS service is now available in 70 cities across the
country and will be expanded to 129 cities on June 18.
Tong Xiaoyu, head of Unicom's value-added service unit, said the
company will soon launch a number of new data services based on
GPRS, such as banking, instant messaging, as well as e-mail and
mobile stock services.
The soaring stock market has boosted demands in China for mobile
data services, such as real-time stock quotes and transactions on
mobile phones.
The Shanghai Composite Index has quadrupled after a five-year
slump that ended in July 2005. Mobile stock, enabled by CDMA
services, is already very popular among customers, according to
Unicom.
Value-added services have become a new revenue stream for both
China Mobile and China Unicom. China Mobile last year generated
23.5 percent of its total revenue from the value-added services,
compared to 20.6 percent in the previous year. Unicom generated
21.5 percent of its CDMA revenue from value-added services, or
non-voice services.
(China Daily May 18, 2007)