The big three operators are competing for the rising 3g markets, which is expected to cover 20 percent of China’s mobile user in the coming three years. Guangdong and other nine provinces became the first bunch of provinces to try the new technology. On May 13, China Mobile signed a strategy cooperation framework agreement with Guangdong provincial government to bring 80 billion RMB to the province’s informationalization projects in the coming five years. And just 20 days ago, China Telecom had also signed an agreement with the province to inject 60 billion RMB for the local information industry. And on May 17, China Unicom launched the 3G trial service in Guangdong. The big three already began a big chess game in the province’s 3G market.
Agreements
Back to April 18, China Mobile, the mobile service provider with the most customers in the world, became the strategy partner with Guangzhou Asian Games and will inject a capital of 220 million RMB, including 100 million into the game venues’ network coverage. The company also promised to support the Universidad that is going to be held in Shenzhen in the year 2011.
One week later, China Telecom signed an agreement with Guangdong to input 29 billion this year on the province’s informationalization work, and another 31 billion in the coming few years. One of the company’s important projects is to build a 3G information express for the province.
After the China Telecom deal, China Mobile returned to the province and promised to bring 80 billion RMB in the coming five years to help the Guangdong’s telecom industry, providing 200,000 jobs and thousands of chances to start related business here.
Biggest 3G market in China
Guangdong Mobile, the local branch of China Mobile, will build over 6000 TD-SCDMA 3G base stations this year. That involves 5 billion RMB, 1/10 of China Mobile’s annual budget in 3G. Earlier, Guangdong mobile has spent 8 billion on 3G network and it has 142,000 users.
Guangdong Telecom, the China Telecom branch, has an annual plan to build 1400 new 3G base stations and expand over 8000 existing ones to cover all the 21 cities in the province, with a budget of 6 billion RMB. Since its 3G commercial package hit the market on April 16, it has an accumulated 210,000 3G users.
Guangdong Unicom, China Unicom’s local branch, will build near 10 thousand WCDMA 3G base stations this year, with an input over 6 billion RMB. At present, the construction work focus on Guangzhou, Shenzhen, Dongguan, Foshan, Zhuhai and Zhongshnan.
Statistics show this year the big three will spend 170 billion RMB in 3G business, and about 1/10 of the money will be spent in Guangdong, making it the province with the biggest 3G network in China.
3G to push Guangdong telecom development
Telecom has once been the most powerful drive for Guangdong’s economic development. However, coming into 2009, Guangdong telecom industry booked decrease in a roll in the first four months. The fixed line users also declined for three continuous months. That was the first time in the past three decades for the local telecom industry to suffer such a long decline.
In the first four months Guangdong telecom has an accumulated revenue of 40.14 billion RMB for its core business, down year on year by 2.79 percent. That means with more than two decades’ rapid development, the market is close to being fully developed. The situation was worsen by the unexpected financial crisis took place last year.
The launching of 3G business is a chance for rebound. Gu Weizhong, Director General of Guangdong Telecommunication Administration Bureau, pointed out that this is the chance for the telecom service providers to innovate their service and bring fresh air into the industry.
As the big three have arrived at the 3G market battlefield, the telecom industry will be once again heated up.
