China offers one of the most diverse wireless networks with limited disclosures and guidance, and a shifting regulatory framework. However, the China 3G story is working , as cheaper devices, data packages and mobile apps ecosystem drive a rapid transition to data services. China is a unique 3G market with three national networks, based on three different wireless network technologies, with almost no network sharing.
China 3G Subscribers & Revenue Growth
China is in the early stages of the transition to 3G smartphones and we see FY13 as a break-out year. Based on the April 2013 sub numbers, China has 293m 3G subs or just 25% of the total sub base of 1.15bn. China Telecom has been the most aggressive on the 3G transition, and with 48% of subs now on 3G that suggests the company will focus on higher quality net adds rather than just scale. China Unicom is in the middle Continue reading China 3G Data Grows Faster with Affordable SmartPhones and Mobile Apps ecosystem
Feature Rich 3G SmartPhone pricing is one of the most important parameters for the overall development of the Mobile Data eco-system in the context of Asian Markets ex-Japan. The Smartphone market is price driven and aggressive price cuts have seen increased adoption.
Expect smartphone volume in the US$150-300 range to increase, mainly driven by demand from low-end feature phone replacement. This is due to,
- repeat customers desiring more sophisticated solutions as they move up the learning curve
- stable component prices, albeit with more advanced specs, incentivising consumers to upgrade their devices
- increasing demand for data-driven services that operate better on higher-end devices and
- a rising 3G penetration rate thanks to broadening 3G network coverage
Continue reading Where is the Starting Point for 3G SmartPhone Pricing in Asia ?
China has only 3 Major Operators – China Mobile, Telecom and Unicom. Across the board, all the three operators are witnessing decline in plain vanilla 2G users. The continued decline in smartphone prices and recent reduction in data price from China Unicom will further accelerate the migration of mid and low-end subs from 2G to 3G.
The competitive environment will intensify further as China Mobile aims to re-balance 3G market share on an improving TD-SCDMA value chain for SmartPhones. China Mobile may end up Continue reading How is 3G Playing out in China in 2013 ?