Telecom carriers make 4G plunge

By Zhang Ye Source:Global Times Published: 2013-12-13 5:03:02

Consumers give 4G technology a try in Beijing last month. Photo: CFP

Consumers give 4G technology a try in Beijing last month. Photo: CFP


After the long-awaited 4G license was finally approved by China's authorities last week, the country's three main telecom carriers have been racing ahead to enter the new Internet age.

Following the Ministry of Industry and Information Technology's formal issuance on December 4, China Mobile, the world's largest telecom service provider in terms of subscribers, has been the most active in promoting a 4G service through its 10086 hotline, official website and microblog account on Sina Weibo, China's Twitter-like service.

The carrier's 4G service is expected to officially open Wednesday, when a contracted TD-LTE-capable iPhone 5s is also rumored to come online, according to media reports.

China's 4G networks will be based on the homegrown TD-LTE standard, while FDD-LTE, an alternative 4G LTE technology, has been more widely deployed in international markets.

As a developer and a supporter of TD-LTE, China Mobile has already launched TD-LTE trial networks and built 20,000 base stations in 15 pilot cities, including Beijing, Shanghai and Guangzhou. It also plans to construct networks in over 100 cities to reach a total of more than 200,000 TD-LTE base stations by the end of this year, the company said in October.

The company's main rivals, China Unicom and China Telecom, meanwhile, are following suit, also initiating moves to embrace the faster 4G.

The third day after the license was released, China Unicom announced a TD-LTE terminal tender bid, but did not reveal its details. The company went on to say that it has no plans to give up hope for a FDD-LTE license and continues piloting its FDD-LTE networks around the country, while its current and widely-used 3G WCDMA networks are said to be capable of smoothly evolving into FDD-LTE at lower costs.

After introducing a similar bid in the fall, China Telecom was reported to have plans to lease China Mobile's facilities. Now, the company is also on board with the quicker mode of Internet technology, kicking off promotions for its "e surfing 4G" service via Weibo and its official website on Tuesday.

However, Bryan Wang, vice president with Forrester Research, said in an interview with the Global Times earlier this month that the two latecomers have not shown any intentions of making extensive use of the TD-LTE, with a preference instead for waiting for the FDD-LTE license, but the ministry gave no clear clue on when that would be offered.

This latest development could give China Mobile an advantageous leg up over its two main competitors, at least for the next six months, Xiang Ligang,  chief executive of telecom industry portal cctime.com, told the Global Times on Tuesday.

But that doesn't mean it will be simple for China Mobile to win back a strong share of the market, especially after losing customers to the two rivals in the 3G era, given that most mobile users aren't so bothered about switching to the new quicker technology anytime soon, he said.

Not 'super hot'

Only 36.3 percent of survey respondents expressed a desire to apply for a 4G network account when the country's carriers launch such packages, according to a report by domestic market consultancy iiMedia Research released December 5.

Most consumers have muted enthusiasm for the new technology, mostly because 4G is incapable of greatly improving the online user's experience, said Wang Yanhui, head of Shanghai-based Mobile China Alliance.

After all, once upgraded to an HSPA+ network to deliver download speeds of up to 42 Mbps, the 3G network's 4G-shortcomings are less obvious since it is capable of download speeds of up to 100 Mbps, said Xiang.

Similarly to how computer networks function, there is a wide gap between narrow bandwidths delivering download speeds of 56 kilobits per second and broad bandwidths capable of download speeds of 2 megabits per second (1M equals 1,024 K), but when upgrading to 10 Mbps of broad bandwidth to 100 Mbps of broad bandwidth, Internet users will feel no obvious difference in terms of the experience.

"4G seems to be only the extension of 3G. The predecessor has successfully popularized smartphones and data communication, but 4G will not bring any revolutionary changes to the world," said Xiang.

Fees 'must' please 

The cost of getting onto a 4G network will also determine how many customers sign up for the service. But as base stations remain under large-scale construction - a task that once complete will determine coverage and the stability of a signal - carriers have some time yet to develop attractive plans.

According to iiMedia's survey, 58.7 percent of respondents say that the fees charged for 4G will be the biggest factor influencing their preference for the service.

In Beijing for example, China Mobile offers local phone users 600 megabytes (MB) of data usage and 500 minutes of airtime within the Chinese mainland for 138 yuan ($23) per month, a Beijing-based customer service employee with the company's 10086 hotline told the Global Times on Monday. The company is reported to apply similar service plans in other cities and provinces, with Guangdong being the exception.

The Guangdong branch offers lower charges by comparison - 1,200 MB of local data usage and 600 MB around the mainland as well as 420 minutes of airtime for 128 yuan per month - but its plans are still among the more expensive offered by China Mobile in Hong Kong, where users can enjoy 1GB of local data usage and 1,800 minutes of local airtime for only HK$98 ($13).

Moreover, given the country's immature technology and network construction at the moment, the high charges are likely to last for some time, according to iiMedia.

But for Li Yu, a Beijing-based China Mobile subscriber, an affordable but also more flexible plan would better convince him to switch to 4G.

"The minimum data usage the company offers is 600 MB. But actually I don't need that much. 100 MB is enough since I prefer to just browse the Web on my mobile (to keep costs down)," said Li.

But as many mobile users like Li try to save money on Internet packages by taking advantage of free Wi-Fi hotspots, the arrival of 4G could see a change in their usage patterns, said Xiang, musing that the newer 4G technology is likely to drive down 3G prices and further popularize 4G's predecessor.



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