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Rumor: China Telecom, RIM Discuss Blackberry Handset

Beijing Business Today, 6/24/09

Rumors suggest that China Telecom (NYSE: CHA; 0728.HK) is currently in talks with Canadian handset manufacturer Research In Motion (RIM) that could see RIM's Blackberry handsets, which are already sold in China by China Mobile, gain a second channel, with trial work already underway. A source revealed that RIM is pursuing talks with China Telecom's government and enterprise customer department, but a launch date has not been confirmed for the product.

As China Telecom currently holds an advantage in the government and enterprise sectors, it may be a more suitable partner than China Mobile for the promotion and provision of Blackberry services. In addition, the Blackberry's largest global market, North America, uses CDMA, the same standard operated by China Telecom, giving China Telecom and RIM more in common from a technology platform perspective.

Neither party commented yesterday on the rumors.

Editor's Note: In March this year, it was rumored that China Telecom had reached a basic agreement with RIM to promote Blackberry handsets and other products nationwide, with the possibility of bringing them to market in April. Rival operator China Mobile has offered Blackberry handsets to corporate users in China since 2006, but has not aggressively promoted the service. Blackberry handsets are also not currently available in China for purchase by individual (i.e. non-corporate) users. According to Reuters, a China Telecom source subsequently confirmed that the operator is in talks with RIM.

Keywords: 0728.HK Blackberry CHA China Telecom RIM wireless mobile phone mobile e-mail

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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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