China Telecom: Mainly running middle-grade Smartphone and expanding social channels


2009 was called The Year of 3G Net. While 2010 is called The year of Terminal 3G net. There will be a intense competition among China Telecom operators on the area of the 1000Yuan Smartphone. On June 23rd, China Unicom promoted five styles of 1000Yuan Smartphone, Nokia, SONY Ericsson, Huawei, Zte, TianYu. And these new styles are going to come into the market. At TianYi 3G mobile Internet trade fair which was hold on June 26th, China Telecom announced the strategy of on mainly running middle-grade Smartphone during almost one year recently. China mobile cooperating with Bosi communication published the new version of Smartphone operation system which was owned by China mobile — the new version Ophone2.0 platform, and released the first Ophone2.0 mobile phone. Smartphone, especially 1000Yuan Smartphone, is becoming China Telecom operators’ next weapon to win in the competition.

China Telecom: Mainly running middle-grade Smartphone and expanding social channels

At TianYi 3G mobile Internet trade fair which was hold in China Telecom in 2010, Zhang Xin, customer department manager of China telecom said that there are 111 brands which are in the sale recently, almost 800 kinds of mobiles. From January 2010 to may 2010, the domestic sales of CDMA terminal is 1697 million which is 571 million more than  the same period in 2009; And the market share reach 21% which is 4% higher than the same period in 2009.  In the first five months of this year, the growth of CDMA terminal pulled the whole terminal market on 8.4%.

However, China CDMA industry is also facing Challenges. “There are large amounts of TianYi mobile phones, but they are not perfect. Besides, middle-grade mobiles are lacking.” Wang Xiaochu said.

Therefore, China Telecom makes the new strategies of CDMA terminal running in the second half of the year 2010 as four engineering which are 3G flagship mobile, 3G feature mobile, 1000 Yuan Smartphone, introductory 3G cell phones.

On the development of Smartphone, Ma Daojie, China telecom terminal management center director, said that China telecom will mainly supports the selling of the 3G mobile phone in 2010 and will continue to create “all series of Smartphone” with the 1000yuan Smartphone as the breakthrough point. According to the plan, China telecom strive to fulfill that the sales of middle-grade 3G Smartphone in 2010 reaches 10million which is twice than in 2009 and fulfill that Smartphone takes more than 50% in the new market.

Terminal manufacturer has quickly captured these signals in the market. YuLong, whose productivity ranks third in the EVDO terminal market, released eight new CDMA phones on August 25th, in which there are high, medium and low grade, and the proportion of them is one to two to one.

Social channel has become the main force of China telecom 3G terminals’ sales. At present, China telecom has signed comprehensive cooperation agreement with chain channels, such as Gome, Suning, etc. And have added 1471 new large cooperation retail outlets. In addition, China telecom organized 12 national agents and large chain stores to purchase middle-grade phones together, and promoted socialization of purchasing and distribution. Ma Daojie said that the socialization of purchasing CDMA terminal has reached 92% till May, 2010; and the sales in social channel have reached 58%. While, retail outlets of CDMA terminal expanded form nearly 5 million at the end of 2009, to nearly 6 million now, increasing by 20%.

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