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Beijing Mobile to Lure CDMA High-end Users

China Business News, 11/25/08

According to internal company documents, Beijing Mobile will enact plans within the next six months aimed at luring at least 110,000 mid- to high-end customers away from competitors that are currently undergoing restructuring. A particular focus will be placed on attracting at least 20,000 customers from China Telecom's (NYSE: CHA; 0728.HK) CDMA network.

Beijing Mobile will also move quickly to occupy strategic market segments, working to bind and retain mid- and high-end customers. The company plans to begin an all-round expansion of its corporate customer market by creating new distribution channels, and by creating a family plan to attract family users. The family plan, to be named "i-home", will be launched next year and will incorporate wireless Internet, a fixed wireless phone, broadband, and additional content services. During 2009, Beijing Mobile hopes to expand its subscriber base to 1.2 mln home users.

Editor's Note: It was reported earlier that a provincial branch of China Mobile in southern China also had set a plan to lure away corporate CDMA users from their existing providers. For more background, please see "Rumor: China Mobile to Poach CDMA Corporate Clients", MD 7/29/08 issue.

Keywords: strategy GSM users bundling i-home 0728.HK Beijing Mobile broadband CHA China Mobile China Telecom Internet wireless 0941.HK CHL wireless networking

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