China Telecom makes first move in mobile phone market
China Telecom has just issued new mobile numbers that begin with the digits 189. It’s the company’s first move since it acquired CDMA operation from China Unicom earlier this year. Meanwhile, competition in the telecom market is getting intense as mobile phone operators have launched new promotions to attract customers.
China Telecom only recently moved into mobile service business after it acquired CDMA operation from China Unicom this year. The new phone numbers beginning with 189 is the first move to getting a share of the market which is dominated by China Mobile.
Meanwhile, China Telecom and China Unicom are launching promotions to attract customers, including cutting charges and offering discounts.
Shu Huaying, Professor Beijing Univ. of Posts and Telecommunications, said, “Right now China Mobile and China Unicom are both trying to keep their consumers by offering preferential charges. It suggests next year, their competition, especially for high-edge consumers, will be more intense. ”
From one-way calling charges to a large drop in roaming fees, using a mobile phone continues to become less expensive. In 2008 alone, the price dropped by 11 percent. But experts say there is still room for improvement.
Shu Huaying said, “For China Netcom, China Telecom and China Unicom, their performance is break even or facing some losses. But China Mobile is making a large profit now. So for the market in general, there is still some space for lowering charges.”
So far, among China’s 620 million mobile phone users, two thirds are China Mobile customers. China Unicom has 120 million users. China Telecom has only 40 million for CDMA operation.
Tags: China-Mobile, China-Netcom, China-Telecom, China-Unicom