Device

China Telecom and China Unicom will jointly launch the ¡°white paper on all-network 6-mode devices¡±

Updated:2015/12/11 11:23

On December 9th, many media in Beijing have received invitations from China Telecom: in the afternoon of December 11th, China Telecom and China Unicom will jointly hold the “release conference of white paper on all-network 6-mode devices” in Beijing.

Only a short while ago, China Telecom and China Unicom expanded cooperation in sharing of 4G networks, now they further make alliance in the device area. Since the after 4G era, the competition pattern of the three major operators has gradually turned to cooperation of China Telecom and China Unicom in the competition with China Mobile.

Why is the all-network 6-mode devices?

Back to the theme of this release conference, “all-network 6-mode devices” is not a new concept. It was first proposed in the 2015 Tianyi (E-surfing) Expo in July, former chairman of China Telecom Wang Xiaochu clearly proposed that China Telecom would follow the trend and make cooperation to develop devices that support 6-mode and all the existing networks.

Previously, China Unicom has mainly focused on double-4G (4-mode: FDD LTE, TD-LTE, WCDMA and GSM) and China Mobile was on 5-mode (TD-SCDMA , FDD LTE, TD-LTE, WCDMA and GSM), both of which didn’t includes the CDMA network of China Telecom. On the other hand, China Telecom has been proposing 6-mode devices, namely GSM, CDMA, TD-SCDMA, WCDMA, TD-LTE and FDD-LTE, which support all the 2G, 3G and 4G networks of China Telecom, China Mobile and China Unicom. The most intuitive result is that the users don’t need to consider whether it supports a certain network when buying mobile phones.

China Telecom is the one that gets most benefits, because the CDMA chips are dominated by Qualcomm with high prices and high patent licensing fees, only a few operators have adopted the CDMA network in the global, the device vendors are reluctant to adopt the CDMA chips. Therefore, mobile phones of China Telecom versions are fewer and the launch time is late.

China Telecom has been doing its best to promote the development of all-network 6-mode mobile phones. In order to further eliminate the barriers in chips, Wang Xiaochu and Jacob, chairman of Qualcomm, have reached consensus after negotiation, namely all the launched chips will support dual SIM cards and 6 modes since August and the prices are almost the same as 5-mode ones. In terms of the patent licensing fees, although one mode is added in the chips, the cost remains unchanged. At the same time, MTK has also launched competitive single chip solutions, which also support dual SIM card and 6 modes.

In the past six months, more and more all-network 6-mode mobile phones have appeared in the market.

China Unicom and China Telecom have made alliance to compete with China Mobile

"All-network 6-mode” is crucial to China Telecom, but does it matter with China Unicom? On the one hand, the all-network 6-mode includes China Unicom's 2G, 3G and 4G networks; more importantly, the two sides have made further cooperation after exchanging their leaders. In addition, it is Wang Xiaochu, the incumbent chairman of China Unicom, that put forward the concept of 6-mode devices. No matter China Telecom or China Unicom, they are not strong enough to compete with China Mobile in the device industry chain. Therefore, the cooperation of the two sides is reasonable.

In the late stage of 4G, China Mobile’s development is in obvious leading position than the other two operators. According to the financial statements of the first three quarters, the total number of 4G subscribers has reached 248 million in China Mobile, while it is only 44 million in China Telecom, China Unicom's 3G/4G subscribers are 172 million (the number of 4G subscribers alone was not issued).

In order to compete with China Mobile, China Unicom has initially developed the “suggestions on sharing of China Unicom and China Telecom 4G networks”, which proposed sharing path of resources and technologies including base stations, computer rooms and transmission, it also suggested the two giant groups to establish special working groups in the group, provincial and city levels to ensure the development of in-depth cooperation. It is regarded as a deep cooperation in the network capacity of the two sides with the goal to narrow down the gap with China Mobile in networks.

On December 11th, China Telecom and China Unicom will jointly launch the “white paper on all network 6-mode devices”, which will further promote the development of 6-mode devices. As a result, the three giants will stand on the same starting line in the devices filed.

 Source:c114
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