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China Mobile TD-SCDMA Base Stations to Reach 18,000

China Business News, 6/27/08

China Mobile (NYSE: CHL; 0941.HK) president Wang Jianzhou revealed that China Mobile has been working on the takeover of TD-SCDMA networks in Qingdao and Baoding, and will complete the process before the Olympics.

To date, China Mobile has invested RMB 15 bln on TD-SCDMA networks and built 14,688 base stations. The HSDPA upgrade of TD-SCDMA networks has been largely completed, but HSDPA terminals remain in short supply.

China Mobile Planning Department GM Dong Xin, in charge of TD-SCDMA construction, said that the coverage of TD-SCDMA networks has reached 95% that of 2G networks. Dong also revealed that China Mobile will add another 500 base stations before the 2008 Beijing Olympics, bringing the total to 18,000 by the end of 2008. He also said that China Mobile plans to procure a total of 300,000 TD-SCDMA terminals before the Olympics.

So far, 4 TD-SCDMA manufacturers have been allowed by China Mobile to sell TD-SCDMA handsets in over 150 China Mobile outlets in 8 cities. The number will increase to 500 (accounting for 50% of the total outlets in those cities) before the Olympics.

China Mobile Marketing Department Deputy GM Lu Wenchang said that to help motivate sales, besides paying normal distribution fees, China Mobile gives another 10% of the price as rebate to its TD-SCDMA distributors. It also gives 1/3 of the handset price to the TD-SCDMA manufacturers as subsidy.

Editor's Note: For more background on China Mobile's opening of TD-SCDMA retail channels to TD-SCDMA handset vendors, please see "China Mobile Opens TD-SCDMA Handset Sales to Vendors", MD 5/28/08 issue.

Keywords: Lu Wenchang Dong Xin 0941.HK 2008 Beijing China Mobile CHL coverage distribution HSDPA marketing Olympics Qingdao retail subsidy TD-SCDMA Wang Jianzhou wireless 3G base station mobile phone procurement tariffs

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