Chinese telecom behemoth makes 4G foray

Hong Kong China Mobile Ltd, the world's biggest carrier, is expanding its footprint in next-generation 4G wireless technology, launching services in Hong Kong as it targets high-end internet users to boost data revenue.

The Hong Kong launch yesterday marked a step forward in its 4G ambitions, as the carrier conducts tests aimed at launching the high-speed services in as early as two years in mainland China.

China Mobile is the only carrier in China that does not have a contract with Apple to sell iPhones, and development of its 4G technology could help pave the way for it to sell the US smart phone in the country.

Majority of 2G users

Even though the Beijing-based carrier has more than 660 million users, many are low-end 2G users. China Mobile offers 3G services, but these use an inferior homegrown technology called TD-SCDMA that Apple, for instance, does not support.

Against this backdrop, China Mobile is upgrading its network as it needs to sell more smart phones to boost data revenue, which is growing more than voice revenue. China now has over a billion mobile phone users, but many just make phone calls and send text messages.

"China's income level is still low. For smart phone [usage] to pick up, China's operators will need low-cost smart phones," Kelvin Ho, an analyst with Yuanta Securities, said.

"They can't totally rely on iPhones because at the end of the day, the high-end market in China may not be very large. You will have to serve the large mass market."

Yesterday, China Mobile's Hong Kong unit launched its 4G services in the Chinese territory, allowing cross-border data sharing plans when roaming in China. Subscribers who sign up for new 3G and 4G data plans with China Mobile in Hong Kong will be able to travel to China to use mobile data services for a fixed monthly fee, reducing data roaming expenses, the carrier said in a statement.