China Telecom (Europe), China Telecom’s wholly-owned subsidiary for the EMEA region, has entered into a network sharing agreement with mobile operator Everything Everywhere for launching its MVNO (Mobile Virtual Network Operator) service in UK in the coming months.

According to company reports, the partnership was secured through Everything Everywhere’s Mobile Virtual Network Aggregator (MVNA) Transatel. Further, with this deal, China Telecom (Europe) plans to target Chinese residents and businesses in the UK, as well as visitors to the country such as students and tourists.

Yan Ou, Managing Director, China Telecom (Europe) has reportedly said that entering the UK mobile market is a strategic move for the operator. Also, they selected Everything Everywhere based on the strength of its network, and Transatel’s proven track record of getting MVNOs up and running quickly and efficiently.  He added that they are keen to launch the service in the UK as soon as possible as there is a real gap in the market for the  provision of tailored mobile services and competitive tariffs aimed at the growing Chinese population in the UK.

Company reports reveal that Marc Overton, Vice President (Wholesale and M2M), Everything Everywhere, said that they are delighted that they have been selected by China Telecom (Europe) as its MVNO partner in the UK.  Further, Everything Everywhere offers MVNO customers the biggest 3G network and widest 3G coverage in the UK, making them the partner of choice for MVNOs.

China Telecom has reportedly entered into a new agreement with US based operator AT&T through which it will gain access to AT&T’s networks in the US along with other regions. According to reports, the deal will enable both the operators to provide virtual networks to their business customers at competitive costs.

Sources claim that as per the agreement, China Telecom would be able to provide services to corporate customers in the US market by using AT&T’s assets while AT&T would be able to do the same for its business customers in China. Further, reports reveal that the two operators may also extend their agreement to include other services such as video conferencing.

 

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China based mobile phone maker, ZTE Corp., is reportedly planning to invest around US$ 314 million in an attempt to support China Unicom Ltd.’s e-book service. According to reports, Yu Yifang, Vice President, ZTE has said that the internet center in Changsha will be expanded over the next three years to include over 1,000 workers from the current strength of 300. He added the center will support the WoReading service that was started by China Unicom in April.

As per sources, Yu said that the WoReading service offered by China Unicom currently accounts for about 21.5 million users, and allows users to download books, magazines as well as audio books on their mobile phones. Yu further added that China Unicom was among ZTE’s first computing services customers, asking the company in November 2010 to set up an online store for mobile applications called the WoStore, which has registered about 60 million downloads in its first year.

 

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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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Spanish telecom operator Telefonica has reportedly entered into a strategic partnership with China Unicom, wherein both operators will use each other’s networks to expand their coverage. According to reports, the deal will provide Telefonica access to China Unicom’s network in the regions of Hong Kong, Japan, Singapore, Australia, France and Sweden.

In return, China Unicom can reportedly increase its presence through Telefonica’s network in Argentina, Brazil, Chile, Colombia, Ecuador, Guatemala, Panama, Peru, Venezuela, Mexico, USA, Puerto Rico, Germany, Austria, Belgium, Bulgaria Denmark, Slovenia, Slovakia, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Morocco, Norway, Poland, Portugal, Netherlands, Czech Republic, Romania, Sweden and Switzerland.

Reports suggest that Telefonica believes this agreement will help both operators expand their capabilities to provide telecom services to various customers in different geographic areas.

 

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According to reports, Shi Lirong, President, ZTE Corp, has said that there is big potential in offering customer services to mobile-phone companies. He said that the company has tie-ups with telecom operators China Mobile Ltd and China Unicom Ltd for a virtual office, with as many as 8 million users for its unified communication systems.

As per sources, Shi added that selling computer services will give ZTE a new source of revenue from existing network-equipment customers who seek ways to generate more sales from the pipes that carry phone calls and data. Further, he believes that cloud computing could account for one-third of the Shenzhen- based company’s sales within three to five years.

Industry analysts claim that ZTE has its work cut out for itself in order for it to be considered globally competitive with other players such as Huawei Technologies Co. and Cisco Systems Inc.

 

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Europe’s largest telecom operator, Telefonica, may reportedly sell off its underperforming assets in an attempt to reduce its debt and regain investors confidence after the revenue loss in Spain. According to reports, the operator has no intention of selling its operations in Germany, Mexico and the Czech Republic, or its 9.7 percent stake in China Unicom (Hong Kong) Ltd.

However, sources claim that the operator has been assessing its business to identify the underperforming assets which can be sold off to reduce their debt amount. As per reports, Cesar Alierta, CEO, Telefonica has been actively cutting down on the size of the workforce along with putting a stop to any merger or amalgamation activity to make up for the losses faced in the year. Further, it has been reported that the operator has been relying heavily on the Latin American economy which accounts for 47 percent of its sales.

 

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Google’s Android mobile software powered more than half of all smartphones sold across the world in the third quarter of 2011, doubling its market share as compared to last year, according to a research report by Gartner. The research giant said that smartphone sales by volume grew 42 percent even as some consumers delayed purchases in anticipation of Apple’s latest iPhone.

Roberta Cozza, analyst in Gartner’s European unit has said that Android benefited from more mass-market offerings, a weaker competitive environment, and the lack of exciting new products on alternative operating systems. According to the report, the global mobile handset sales during the third quarter totaled 440.5 million units, with smartphone sales reaching 115 million, representing a quarter-over-quarter increase of 7 percent and year-over-year increase of 42 percent.

Android smartphones led the way with sales of 60 million, up from the 20 million units sold last year, while Apple reported unit sales of 17 million, up from 13 million in the past year. Symbian based phones saw the biggest decline with sales falling to 19 million from 29 million in the past year resulting in its market share declining from 36.3 percent to 16.9 percent.

The report reveals that smartphone sales reached 115 million units in the third quarter of 2011, up 42 percent from the same period in 2010. Further, smartphone sales accounted for 26 percent of all mobile phone sales, gaining only a marginal one percent in the previous quarter.

Cozza also states that the strong smartphone growth in China and Russia helped increase overall volumes in the quarter, but demand for smartphones stalled in advanced markets such as Western Europe and the U.S. as many users waited for new flagship devices featuring new versions of the key operating systems. She added that slowdowns also occurred in Latin America and the Middle East and Africa.

Further, Ms. Cozza also said that some consumers held off upgrading in the third quarter because they were waiting for promotions on other new high-end models that were launched in the run-up to the fourth quarter holiday season, while other consumers were waiting for a rumored new iPhone and associated price cuts on older iPhone models which affected U.S. sales particularly.

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Orange, a key brand of France Telecom, is reportedly planning to launch three phones which will give users direct access to social networking site, Facebook, in Europe and Africa, inclusive of free Facebook data in the package. According to reports, the new phones will have a Facebook button, and will be focused primarily on Romania and Poland in Europe along with Tunisia and Egypt in North Africa.

As per sources, Patrick Remy, Vice President (Devices), Orange has said that Orange Romania will sell the 3G version of the Facebook phone, an Android device made by TCL Communication in Shenzhen, China, for approximately US$ 135.  He added that the package will include 60 minutes of voice, a bit of data and unlimited access to Facebook.

Remy also said that the phone has 3G at up to 7.2 megabits a second download, and the non-Facebook data limit will be 60 megabytes a month before extra charges start. Further, the other two models, also made by TCL, are 2G only and will mainly be aimed at emerging markets.

Remy has also reportedly said that 10-15 percent of the terminals in use on Orange networks have the Orange brand and the company hopes to push that to 20 percent in 2012.

 

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Air China, one of the major airlines of the People’s Republic of China, has reportedly announced plans to offer wireless network services on its flights from this month. According to reports, initially the passengers would not be allowed to access the internet, however, they would be able to use their laptops and other devices to play games, watch entertainment programs as well as shop online.

As per sources, Zhou Enyong, Air China spokesperson has said that the network service will first be available in single-aisle planes followed by wider jets, and will gradually be made available on Air China’s major domestic flights. He added that in order to ensure the success of the first commercial flights that have the network, the plane will go through an hour long trial flight this week, without any passengers to test the plane’s network server and other equipment.

According to reports, Air China had discussed plans to work with China Telecom, the largest telecommunications operator in the country, in April, in an attempt to enable passengers to access the Internet as well as use cell phones.

 

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