1. There are strong ties between executives and the government. Enterprise senior executives enter the government for policies and resources, while governmental officials enter enterprises to materialize their economic profits earned while in the position. These people have little incentives to develop their companies’ brands despite having access to vast resources and political pull, since their career is tied to the state, not the vagaries of the marketplace (we are the champions, 2013).
2. In the 3G market, China Mobile's market share shrank from 72 percent in 2009 to 63.41 percent in March 2013 (Cai, 2013). In the 3G transition, China seems to have fallen behind because the Chinese government did not grant any 3G licenses until January 2009. 3G services have been available in China for only a few months. But the mobile network operators and related companies have prepared for mobile data services for years (Zhang & Liang, 2012).
China Mobile uses a homegrown 3G network standard that is not supported by as many international handset makers (Bloomberg business, 2012). Global chipmakers and phone manufacturers are reluctant to design components for a technology that looks to be a dead end (Technology, 2012). 3. Only China Mobile offers 4G services currently. It has already set up 4G networks for trial use in 15 cities (Cai, 2013). 19% of wireless connections in the US are expected to be on 4G networks by the end of the year, less than 2% will be on 4G connections in Europe (Electronics weekly, 2013).
4. China Mobile is by far the country’s largest carrier with 655.4 million mobile users, more than triple Unicom’s user base. That’s mostly because the government mandates that China Mobile cover rural areas, a standard to which China Unicom or China Telecom are not held (China economic review, 2012). 5. China's Ministry of Industry and Information Technology (MIIT) says operators invested RMB 80 billion (US$11.71 billion) in 3G networks in the first half of this year. And it projects spending of RMB 450 billion (US$66 billion) on 3G services in the next two-and-a-half to three years.In FY2008 China Mobile's ARPU was RMB 83 (US$12), down from 89 a year earlier. China Unicom's ARPU was half that at RMB 42.3 in 2008 (Stephen, 2009).
6. China Mobile is the leading provider of mobile telecommunications services in Mainland China and the largest provider of mobile telecommunications services in the world as measured by total number of customers. As the end of March 2012, China Mobile had 667.2 million wireless subscribers. Comparatively, China Unicom had 209.5 million and China Telecom 135.8 million (China Mobile Ltd., 2012) 7. China Mobile built network infrastructure with four network coordination strategy, which includes 2G, 3G (TD-SCDMA), WLAN and TD-LTE. In GSM, the company has 700,000 base stations with network utilization of 70-75%. China Unicom had 375,000 GSM base station. TD-SCDMA network primarily carries handset data and China Mobile operates 220,000 base stations with data traffic at 58.4%. China Unicom had 239,000 3G base stations (China Mobile Ltd., 2012).
1. China Unicom was one of the few companies to operate both CDMA and GSM networks side by side: one of the others was Telstra in Australia, but closed down its CDMA operations in April 2008. China Unicom now is selling its CDMA operations to China Telecom- currently a fixed-network only operator-for 66.2 billion yuan for the network and 43.8 billion yuan for the business, a total of 110 billion yuan (Business Source Complete, 2009).
2. China Unicom concentrates in mainland (China Unicom, 2011) but China telecom is trying to develop business in the U.S., Europe and Asia. The Asia-Pacific Region and Europe accounts for about 60% of Huawei’s annual revenue mix in 2012 (Olsen, 2013). 3. In 2009, the company finalized a deal with Apple for the exclusive sale of its iPhones in China for three years to boost sales of its 3G business. The company also initiated active sales and marketing efforts, including introducing more types of 3G tariff plans, enhancing 3G handsets subsidy models and launching a more variety of 3G handsets models. Furthermore, the company launched WO-branded store, an online applications store that enriches customers’ 3G experience. (China Unicom, 2011). China Mobile did not offer iPhone till March, 2012 (China economic review, 2012). 4. The company has expanded its partnership with Telefonica in January 2011 (China Unicom, 2011). Telefonica will increase its interest in China Unicom to above 8% while China Unicom will become a Telefonica shareholder with a stake of approximately 0.88%.
The carriers have agreed to cooperate in various businesses like the joint acquisition of infrastructure and equipment for customers, roaming, and research and development (R&D). China Telecom and Telefonica have entered into a subscription agreement pursuant to which either company will invest the equivalent of 1 billion U.S. dollars in the other by acquiring its shares (worldwide telecom, 2009). Vodafone Group and China Mobile are to join the auction process for a mobile licence in Myanmar. The two companies have formed a joint venture to bid for the licence to build and operate a nationwide network for 15 years (Global Telecom Business, 2013).
5. The company’s revenues have declined from CNY96, 855 million in 2007 to CNY80, 056 million, representing a negative compounded annual growth rate of 6% for the period 2007-10 (China Unicom, 2011) 6. China Unicom in May started selling handsets from local manufacturers Huawei Technologies and ZTE that cost less than 1,000 yuan. By November the carrier was adding more than 3 million new 3G subscribers monthly. For the year, China Unicom added 26 million 3G mobile users. China Unicom’s 3G customers use about twice as much as data as China Mobile’s (Bloomberg business, 2012).
China Telecom 1. The company plans to start marketing a wireless service to U.S. consumers under its own brand early next year, seeking to sign up students, tourists, and Chinese-Americans who travel often between the two countries (China Telecom, 2011). 2. The company plans to launch MVNO services for Europe’s ethnic Chinese citizens and for visitors from China, starting in the UK in 2012 (Ou, 2011). 3. Change from a traditional network operator to a provider of information services (Wang, 2005). 4. focus on four new areas: systems integration for enterprises; Web-based value added services for consumers; mobile telephony; and international services( Wang, 2005)