China Telecom starts staff training on CDMA technology
China’s fixed telecom service operator China Telecom (0728.HK; CHA.NYSE) has started a new task this year to train employees on CDMA network technology, reported China Business News.
Employees of China Telecom widely believe that China Telecom will take over the CDMA network of China Unicom in the upcoming telecom industry restructuring, despite that there is no official confirmation of the reshuffle details.
It is learned that China Telecom has set up a mobile communications preparation unit, which is responsible for employee recruitment, training, technology exchange, etc.
For China Unicom, it cannot neglect the development of any networks now, as CDMA network is related to profitability and sales valuation while GSM network needs more network deployment, a senior official of the company was quoted as saying.
The source added that staff and technology accumulation cannot determine the future pattern of market competition, and on the contrary, the key is policy guidance, for example policy with regard to mobile phone number portability.
At present, mobile phone number cannot be freely shifted among different mobile operators, which adds to customers’ stickiness to a certain mobile phone operator.
In view of the current dominant position of China Mobile and its strong GSM network capacity, openness of number portability will deteriorate China Unicom’s business environment.
However, in the future when telecom reshuffle is completed, more openness of number portability will give opportunity to new China Telecom and China Unicom.
But, if the government supports development of TD-SCDMA technology, number portability might be delayed, which means that it will be still difficult for China Unicom and China Telecom to draw new customers from China Mobile.
Tags: CDMA, China-Mobile, China-Telecom, China-Unicom, GSM