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Rumor: China Mobile, MIIT Discuss CMMB for 2G Handsets

Sohu IT, 3/22/12

An industry source reported recently that China Mobile (NYSE: CHL; 0941.HK) started discussions with the Ministry of Industry and Information Technology (MIIT) last year regarding CMMB mobile television service for 2G (GSM and CDMA) handsets. The MIIT may abandon its restriction on CMMB modules in 2G handsets. An industry insider said that even if China Mobile does become a shareholder in national CMMB operator China Broadcasting Corporation (CBC), it will be unlikely to block rivals China Telecom (NYSE: CHA; 0728.HK) or China Unicom (NYSE: CHU; 0762.HK; 600050.SH) from featuring CMMB functionality in their own handsets.

As of the end of 2011, CMMB coverage was available in 336 cities at or above the prefecture level and 855 cities at the county seat level or higher, for 98.22% coverage of an urban population totaling nearly 800 mln people and more than 35 mln compatible mobile terminal users. China Mobile and CBC signed a partnership agreement in March 2009 barring China Telecom and China Unicom from featuring CMMB service in their 3G handsets for a three-year period. The MIIT has not issued network access permits to any 2G handsets featuring CMMB functionality.

CBC general manager Sun Zhaohui said in a recent interview with Sohu IT that new breakthroughs in integrated CMMB antenna technology would enable the operator to build CMMB antennas into a greater range of mobile phones and mobile terminals in the future. Following the end of CBC's exclusive contract with China Mobile, Sun said, the companies are once again engaged in partnership discussions - but no final agreement has yet been reached as to the nature of their partnership.

Keywords: national statistics Sun Zhaohui China Mobile coverage handset television users MIIT CMMB CDMA GSM CHL 0941.HK China Broadcasting Corporation mobile phone TV regulation

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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