China Mobile CEO Li Yue announced in a shareholders meeting that China Mobile will not be engaging in price war when it comes to introducing 4G network services, and aims to pilot test them in up to 10 cities. This strategic is intended to allow them to acquire a larger market share and provide better quality 4G services.
According to Li Yue, China Mobile’s monthly average revenue per user (ARPU) in the first quarter fell by three percent, and will be focusing its upcoming efforts on developments in new businesses, in order to offset the negative growth rates.
On development efforts of TD-LTE, China Mobile chairman Xi Guohua said it will be increasing the number of pilot-testing cities from six to ten. It also has 40 telecom operators committed on board for the development of TD-LTE 4G network.
According to Sina News, the cost of developing 4G is much cheaper than 3G. This would also mean with the development of the 4G network and rising popularity of smartphone usage in China, introduction of 4G network services will become the core contributing factor to China Mobile’s future profits. Li Yue also added that the company also has plans to build 20,000 4G base stations, and if all goes well, it is looking at having 200,000 4G base stations by the end of 2013.
Guohua added that China Mobile is looking to strengthen its partnership with Apple, and will be releasing new updates about their cooperative efforts soon.
[Source: Sina News – article in chinese]
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