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3G users deterred by coverage and price
By Zhu Shenshen |
July 20, 2010, Tuesday
|
Online Edition
Online Edition
CHINA'S 3G user base was "less than expected" by the end of first half because of lack of 3G model variety and network coverage problems, the country's top industry regulator said today.
3G-related investment in China is expected to hit 120 billion yuan (US$17.6 billion) this year, 25 percent lower than in 2009. But China won't change the original plan to invest 400 billion yuan on 3G from 2009 to 2011, according to the Ministry of Industry and Information Technology.
By the end of June, China's 3G user base had reached 25.2 million. Among them, 10.5 million of them were 3G users with China-developed home-grown TD-SCDMA (time division-synchronous code division multiple access), said Zhang Feng, the ministry's telecommunications division director.
As an early plan, China plans to develop totally 60 million 3G users by the end of 2010. Based on the current user base, it's almost possible to attract 35 million new 3G users in the second half to meet the target.
"The 3G development is less than our expectation because of the model variety and coverage problems. Consumers may need more time to know and get used to 3G services," Zhang said during a broadcast press conference today.
Based on the high-speed 3G network, users can access various data services from video calls, mobile TV and video and music downloads.
At present, 3G users are a small proportion of the total mobile phone user base, which has surpassed 800 million, the ministry said.
The 3G model variety is not rich enough, especially in the TD-SCDMA sector. Meanwhile, the price for models such as Apple's iPhone 3GS is not affordable by many users, with many costing more than 3,000 yuan, analysts said.
Carriers, including China Mobile, China Unicom and China Telecom, recently announced plans to launch more affordable 3G models to woo entry-level users. Each 3G device is expected to cost less than 1,000 yuan.
Carriers are constructing 3G base stations nationwide to improve 3G signal coverage to more regions. Generally speaking, 3G services are only available in the county-level regions.
3G-related investment in China is expected to hit 120 billion yuan (US$17.6 billion) this year, 25 percent lower than in 2009. But China won't change the original plan to invest 400 billion yuan on 3G from 2009 to 2011, according to the Ministry of Industry and Information Technology.
By the end of June, China's 3G user base had reached 25.2 million. Among them, 10.5 million of them were 3G users with China-developed home-grown TD-SCDMA (time division-synchronous code division multiple access), said Zhang Feng, the ministry's telecommunications division director.
As an early plan, China plans to develop totally 60 million 3G users by the end of 2010. Based on the current user base, it's almost possible to attract 35 million new 3G users in the second half to meet the target.
"The 3G development is less than our expectation because of the model variety and coverage problems. Consumers may need more time to know and get used to 3G services," Zhang said during a broadcast press conference today.
Based on the high-speed 3G network, users can access various data services from video calls, mobile TV and video and music downloads.
At present, 3G users are a small proportion of the total mobile phone user base, which has surpassed 800 million, the ministry said.
The 3G model variety is not rich enough, especially in the TD-SCDMA sector. Meanwhile, the price for models such as Apple's iPhone 3GS is not affordable by many users, with many costing more than 3,000 yuan, analysts said.
Carriers, including China Mobile, China Unicom and China Telecom, recently announced plans to launch more affordable 3G models to woo entry-level users. Each 3G device is expected to cost less than 1,000 yuan.
Carriers are constructing 3G base stations nationwide to improve 3G signal coverage to more regions. Generally speaking, 3G services are only available in the county-level regions.
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