China Mobile, a leading mobile operator is reportedly planning to add around 20,000 TD-LTE base stations to its trial network next year, as a result of the increase in demand for 3G data services, which may pave the way for 4G services earlier than expected. According to reports, China Mobile which currently has less than 7 percent of its customers on 3G services, aims to provide higher quality data services in a bid to better compete with its rivals.

In keeping with this, Xi Guohua, Vice Chairman, China Mobile has reportedly said that the company will build between 10,000 and 20,000 additional TD-LTE base stations around China in 2012. Further, it has already installed 850 base stations in six cities and 50 percent of its 250,000 TD-SCDMA base stations can be gradually upgraded to the new standard.

 

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China Mobile, the world’s leading mobile phone operator, has reportedly launched a new daily data roaming tariff package for its users. The company had earlier introduced a package offering reduced international roaming tariffs for voice, text messages and mobile data across 23 countries and regions.

According to reports, currently, the new tariff plan has been launched in Hong Kong, Macao, Taiwan, Singapore, Malaysia, Korea and Thailand, and is largely aimed at international travelers using their mobile handset to surf the internet. As per sources, customers subscribing to the daily data tariff package can access unlimited roaming data in specific operator networks for a daily fixed charge while roaming in any of the aforesaid places. Further, reports suggest that the per day charge for the service will be around $14 in Hong Kong as compared to $15.3 payable at the other places.

 

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Li Hua, the former Chairman and General Manager of the Sichuan branch of China Mobile, the world’s largest mobile phone operator in terms of subscribers, was sentenced to death with a two year reprieve, for accepting bribes. The two year reprieve allows for the death penalty to be converted to life in prison, on the basis of good behaviour.

Li Hua was convicted on a charge of accepting US$2.58 million in bribes from local companies by a Court in southwest China’s Sichuan Province. According to reports, US$1.97 million were returned by Li Hua after he pled guilty. With this move, China aims to root out the corruption found amongst high-ranking officials and executives at state-run companies. Sources claim that at least six other executives from China Mobile are under investigation in corruption cases.

 

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First International Telecom (Fitel), Taiwanese WiMax operator will set-up a number of TD-LTE base stations in Taiwan with China Mobile.

According to reports, Fitel and China Mobile will launch five to ten TD-LTE base stations in the government-planned Taoyuan Aerotropolis beside the Taoyuan International Airport to undertake field test. The trial project is expected to run from July 1 this year to  June 30, 2012. China Mobile will offer technological assistance while local notebook maker Quanta Computer will provide equipment and terminal devices.

 

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With the approval of the Ministry of Industry and Information Technology of the People’s Republic of China (MIIT), Nokia Siemens Networks has become one of the first telecommunications equipment vendors to participate in the large-scale TD-LTE trial with China Mobile.

Nokia Siemens Networks will offer its commercial 2.3GHz/2.6GHz TD-LTE equipment, professional services and management software to conduct the major field trial in Hangzhou.

Nokia Siemens Networks has already completed both 2.3 and 2.6GHz outdoor, and 2.3GHz indoor, single-system testing with TD-LTE. The company is one of the first global vendors to be selected for the large-scale TD-LTE field trials with China Mobile. In addition, Nokia Siemens Networks has conducted interoperability tests of its TD-LTE equipment with a number of TD-LTE devices of major suppliers. As stated by MIIT, Nokia Siemens Networks will cooperate with China Mobile to accelerate network construction, equipment installation, and network optimization according to the overall requirements and plan of the large-scale TD-LTE trial in Hangzou.

Nokia Siemens Networks has built a complete TD-LTE business in China, integrating procurement, production, testing and maintenance with its Hangzhou R&D Center at the center of this value chain,” said Markus Borchert, head of Greater China customer operations at Nokia Siemens Networks. The approval by MIIT confirms our long-term support for TDLTE  and our leadership driving the global ecosystem for unpaired frequency bands.”

In addition to its market-leading Single RAN Advanced radio equipment, Nokia Siemens Networks will provide network planning and network optimization services to ensure sustained network quality and performance. Configuration, monitoring and optimization for this project will be based on the company’s Network Management System, NetAct.

­Alcatel-Lucent has announced that it has been selected by China Mobile to participate in a TD-LTE trial network deployment in China.

Alcatel-Lucent Shanghai Bell will be working on a TD-LTE trial in the city of Shanghai, which is one of seven cities where China Mobile is testing LT-LTE services.

The tests were conducted in both 2.3GHz and 2.6GHz frequency bands for indoor and outdoor deployments and relied on Alcatel-Lucent’s industry-leading LTE expertise to provide an end-to-end integrated solution including LTE base stations (eNodeBs), the Evolved Packet Core (EPC). Alcatel-Lucent’s solution successfully passed interoperability tests with two unnamed terminal suppliers.

 

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China Mobile Corp has reported its full year results. As per the results, its full year revenues rose by 7.3% to US$73.8 billion, while net profit increased by 3.9% to US$18.2 billion.

The customer base rose by 11.8% to 584 million – a rise of 61.73 million over the previous year. Of the total, 20.70 million are using 3G services.

EBITDA rose 4.5% over last year to US$36.43 billion, with EBITDA margin reaching 49.3%.

In addition, voice usage volume continued to grow. Average minutes of usage per user per month (MOU) were 521 minutes, up by 5.4% over last year. Average revenue per user per month (ARPU) was US$11.10, exhibiting a slowdown in decline.

According to the company, it will accelerate the rollout of its TD-LTE network and will still consider suitable overseas acquisitions.

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Chinese Minister of Industry and Information Technology Miao Wei has stated that China won’t launch commercial 4G mobile services nationwide until 2014.

Mobile operators worldwide are upgrading to 4G networks to fuel growth. 4G services offer faster data speeds and higher revenue per user than the more widely available 3G services.

According to Miao, China will need three to five years to start large-scale commercial use of 4G services, slowed by the country’s promotion of a 4G technology called TD-LTE that isn’t yet fully mature. Local operator China Mobile Ltd. is likely to adopt the TD-LTE standard for 4G services but China may also allow carriers to adopt a different standard. It is also obvious that the Chinese government doesn’t want to adopt a 4G service too soon as that would disrupt the carriers’ efforts to develop 3G services further.

As per reports, China’s government and its three big mobile operators, China Mobile, China Unicom (Hong Kong) Ltd. and China Telecom Corp., invested billions of Yuan to build 3G networks after China launched 3G services in 2009.

­A report has claimed that mobile subscriptions in the developing countries of Asia continue to grow dramatically, as operators like Bharti Airtel of India and China Mobile tap new consumer segments. However, revenue growth has been failing to keep pace.

According to the research, average annual revenue growth from 2001 through 2015 is forecast to lag subscription growth by more than 10 percentage points. Without a boost from new services offered on 3G networks, revenue will start to stagnate in the next few years.

Price competition is one factor that is holds down revenue. In the hypercompetitive Indian market, for example, Bharti Airtel offers voice calls for as little as 1.2 cents per a minute, while in nearby Sri Lanka, an imposed price floor keeps operators from cutting prices below a penny a minute. Expansion into rural areas also reduces revenues.

As per researchers, operators really must expand beyond the city in order to grow. Yet, people in the country typically do not have as much money to spend on communication, which hurts the top line.

For many operators, including AIS in Thailand, which now receives more than 10 percent of its service revenues from non-messaging data services, the ability to promote services beyond voice and SMS has been a key to revenue enhancement. However, AIS and the other Thai operators have been unable to expand high-speed services beyond a few limited areas because 3G spectrum auctions have been delayed for years.

 

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­China Mobile’s Chairman has confirmed that Apple is looking at developing an LTE based iPhone, which is in itself, not a huge surprise, but that it would work on the Chinese TD-LTE standard, which might be more interesting.

According to Chairman Wang Jianzhou, Jobs has expressed his interest in an LTE iPhone and he is willing to start the development at an early date.

China Mobile is currently deploying a more specialized version of the LTE platform, TD-LTE, so that Apple would have to develop a handset specific to that mobile network – with the expectation that other networks may adopt the technology in the future.

Even if China Mobile remains the sole proponent of TD-LTE, its customer base is larger than many countries, so the investment in developing a Chinese iPhone would still make sense.

China Mobile is expected to launch LTE this year. Already, China Mobile has joined forces with Verizon and Vodafone in a cooperative LTE trial. Rivals, China Telecom and China Unicom are expected to start deploying LTE networks between 2012 and 2013.

 

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