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December 4, 2010

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Chinese telcos should cooperate in 3G

CHINESE mobile operators should not only compete but also cooperate in 3G, because they face challenges from overseas giants, including Apple Inc and Google Inc, industry officials said at a forum yesterday in Beijing.

The combination of online stores and devices, such as Apple's iPhone and App Store as well as Google's Android system and applications market, have started to challenge the dominant positions of domestic mobile carriers and data business in the mobile Internet market, said Yu Chuan, vice director of terminal department of China Mobile Research Institute.

"Apple and Google are so successful in the mobile Internet sector through their online stores. As they continue developing their stores, (domestic) carriers will be playing the role of network provider only," Yu said at the 3G Innovation Forum yesterday.

"We should not only encourage competition among carriers but should also be aware of threats from players outside the telecommunications industry," Yu said.

Apple and Google's Android are the hottest mobile systems and apps providers in the industry.

In September, Apple and China Unicom launched the iPhone 4.

China Mobile and China Unicom have also set up online stores, Mobile Market and WoStore, but they are hampered by the limited number of apps unlike Apple's iTunes Store with more than 300,000 paid and free apps.

Yu expected reading, music and video to be the killer 3G apps in the domestic market.

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