InsideGFW

Stories from inside the Great Fire Wall

Welcome to Shanghai »« China Mobile – How the new 3G policy changed China’s Telecommunications market | Part 1

What is the reality of China’s 3G market | Part 2

From the previous article you have gotten a brief idea about the three China mobile telecommunication tycoons. This article will show why almost 90% of China’s 3G network users are running this new 3G technology on a 2G device or a PC.

It seems like the three tycoons have a bright vision for China’s mobile market, which also fits in with the research done by Google saying that 60% of the world’s new mobile phone users will be coming from Asia and in particularly China, as the biggest country in Asia with the largest population. And, they hold the view that the one, who gets the biggest market share today, will be the only one who still will be here tomorrow.

So regardless of the expenditure, they try to attract customers to use their 3G services by providing free phone packages to customers, eliminating roaming fees, cutting down on the cost of long distance calls, offering better deals to existing 2G subscribers, etc

Using these kinds of measures and huge investments on advertising and marketing, they got a lot of subscribers to switch to or take up their 3G services. However, a large percentage of the people are those who just get the cheap mobile phones with very basic functions and a 3G plan subscription as it is usually more competitive than existing 2G plans. There are people who changed from having an ADSL connection to using a 3G dongle. Also there are people like me just want to avoid paying the roaming fee by using the 3G network.  I am also going to change my 2G plan to a 3G one next month because the price will be cheaper, but I will be running this on my BlackBerry 8520 which is not a 3G phone. None of these people actually have a 3G device or use the 3G network. They just simply changed to 3G and use it as a 2G network without knowing what they can do with it.

The above gives you a better idea about the 3G market in China. But for what do the Chinese people use their mobile phone? How many people are using smart phones? Stay tuned for next week’s part 3.
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March 15, 2010 at 4:26 pm
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