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China Telecom Comes with CNY1,000-below Android SmartphoneSHENZHEN, Sep 21, 2010 (SinoCast Daily Business Beat via COMTEX) -- China Telecom Corporation Ltd. (NYSE: CHA and SEHK: 0728), one of the Big Three telecom operators in the country, rolled out the first batch of smartphone priced at not more than CNY 1,000 in cooperation with Huawei Technologies Co., Ltd. and ZTE Corporation (SZSE: 000063 and SEHK: 0763) on September 19, a move regarded as the Beijing-based company's latest push to boost 3G terminal sales. ZTE, one of the top-ranking telecom equipment makers in China, described the newly-launched 3G smartphone as a special product in a special time that day. The smartphone, powered by EVDO and Android2.1 operating system, is part of China Telecom's efforts to spur appetite for 3G terminals. China Telecom will make the first batch of the products available for users in and out of its outlets at the end of this month. The telecom operator has procured as many as 300,000 Android-based smartphones in what called the biggest 3G mobile phone purchase in the country. ZTE and Huawei, maker of the smartphones, have adopted advanced configuration for the products, disclosed people familiar with the matter. ZTE, for instance, has embedded one of the models with MSM7627, a high-end chip made by Qualcomm, Inc. (NASDAQ: QCOM). China Telecom said in its H1 financial report that 3G user number stood at 7.18 million by the end of June, in sharp contrast to 10.46 million scored by China Mobile Ltd. (SEHK: 0941 and NYSE: CHL) and 7.56 million booked by China Unicom (Hong Kong) Limited (NYSE: CHU, HKSE: 0762 and SHSE: 600050). China Telecom is confronted with bottlenecks such as poor product array and high price on its way to a bigger 3G user base, pointed out Fu Liang, an analyst specialized in the telecom industry, noting that the company is expected to guide more mobile phone makers into the CDMA industrial chain. China Telecom, the sole operator of CDMA2000 network in the country, is trying to reshape its distribution network by beefing up direct-supply distribution outlets across the country. The company expects to share more profit with terminal retailers to drive up sales. China Telecom is looking to team up with a series of mobile phone makers to lower the threshold of 3G smartphone. The company has worked out an expansion strategy to extend its reach to four segments, namely popular products at not more than CNY 1,000, stylish products at CNY 1,500 or so, high- and medium-end business products, and top-tier flagship products. (USD 1 = CNY 6.70) Source: www.nf.nfdaily.cn (September 21, 2010) |