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June 27, 2014

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Telco aims to sell 100m ‘star’ 4G cell phones

CHINA Telecom plans to sell 100 million mid- and high-end “star” 4G phones to consumers in 2014, the country’s No. 3 telco said yesterday.

“We need star models to offer users more services,” said Ma Daojie, China Telecom’s mobile end division general manager.

China Telecom, with 180 million users, aims to develop 100 million 4G users this year after getting the China-developed TD-LTE license last December.

The telco as well as China Unicom are expected to get 4G licenses based on FDD-LTE technology today from the government, media reported yesterday. FDD-LTE is more commercially mature because it has been used in other countries like the United States, South Korea and Britain for several years.

The new licenses and the booming 4G market will open huge opportunities for domestic handset vendors as well as overseas giants. They attended China Telecom’s annual handset trade fair which opened in Nanjing, Jiangsu Province, yesterday.

ZTE, which aimed to sell 60 million phones in 2014, may sell 18 million mid- and high-end phones costing 1,500 yuan (US$241) or more, said Wu Hai, ZTE China mobile division head.

The telcos are now focusing on better 4G models, and this will help handset makers improve profit margin.

In December, the Ministry of Industry and Information Technology issued licenses based on the TD-LTE technology to the country’s three mobile carriers, including China Mobile.




 

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