China Telecom (HKEx: 728; NYSE: CHA) is quickly becoming a company to watch, with new signals indicating it will soon receive a 4G license for its FDD-LTE technology as it searches for private partners to co-develop new services. These 2 news bits actually come from separate sources, but they collectively show that China Telecom could be poised to gain some market share over its larger and more bureaucratic rivals China Mobile (HKEx: 941; NYSE: CHL) and China Unicom (HKEx: 762; NYSE: CHU). Regular readers will know that I’m relatively bullish on China Mobile and China Telecom, though I’m far less enthusiastic about the schizophrenic Unicom. Read Full Post…
Leading wireless telco China Mobile (HKEx: 941; NYSE: CHL) has kicked off the first-quarter earnings season with some numbers that look quite scary, reflecting a sharp slowdown as its home market shows growing signs of saturation. Adding to the problem is the rapid growth of “over the top” (OTT) apps like Tencent’s (HKEx: 700) popular WeChat, which are stealing business from China Mobile’s traditional text messaging service. I commented last month that a recent sell-off in China Mobile shares could represent a good buying opportunity, but clearly these latest results show the company is going through a period of painful readjustment that is likely to last for the rest of this year. Read Full Post…
The 4G strategies of China’s 2 smaller telcos are starting to emerge under an unusual hybrid scheme being rolled out by the nation’s telecoms regulator, and the path being pursued by China Unicom (HKEx: 762; NYSE: CHU) certainly doesn’t look encouraging. Both Unicom and China Telecom (HKEx: 728; NYSE: CHA) have been given the nod to launch commercial 4G service using a homegrown standard known as TD-LTE, even though both plan to build their main networks using a more globally tested technology technology called FDD-LTE. But whereas China Telecom is making minimal investment in TD-LTE, Unicom seems intent on wasting billions of dollars, with word that it has awarded contracts to 8 companies to start construction of a network based on the technology. (Chinese article) Read Full Post…
Leading telco China Mobile (HKEx: 941; NYSE: CHL) is talking tough in Barcelona at the world’s top trade show, detailing aggressive plans to quickly boost its new 4G service in a bid to take on the massive challenge from Tencent’s (HKEx: 700) wildly popular WeChat mobile messaging service. I’ve previously criticized China Mobile for failing to innovate and relying too much on its highly protected status in China’s telecoms services markets. But this new series of announcements seems to highlight a newer posture at the state-run behemoth, hinting that it may finally start to become more dynamic in response to a growing number of private sector threats. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 20. To view a full article or story, click on the link next to the headline.
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Tencent (HKEx: 700) To Buy 20 Percent Of Restaurant Ratings Site Dianping (HKEx announcement)
Dongfeng (HKEx: 489) To Pay 800 Mln Euros For 18 Pct Of Peugeot (Paris: PEUP) (English article)
MIIT: China’s 4G User Base To Reach 30-50 Mln In 2014 (English article)
Xiaomi Enters Singapore To Kick Off Global Expansion (Chinese article)
Qihoo 360 (NYSE: QIHU) To Introducing Free Security Services To The World (PRNewswire)
A new flurry of reports are saying that 4G service launches are coming soon from the nation’s 2 smaller telcos, China Telecom (HKEx: 762; NYSE: CHA) and Unicom (HKEx: 762; NYSE: CHU), as both seek to stop leading telco China Mobile (HKEx: 941; NYSE: CHL) from gaining any advantage from its earlier roll-out of similar service. The move initially came as a slight surprise to me, as I really didn’t expect either company to aggressively promote 4G until the second half of this year for technological and cost reasons I’ll explain soon. But this sudden acceleration in their plans actually looks like a smart strategic move to prevent China Mobile from gaining new momentum, even if such a tack could create both technical and financial challenges for both smaller carriers. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 28-30. To view a full article or story, click on the link next to the headline.
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China’s 4G Users To Reach 30 Mln in 2014 – Regulator (Chinese article)
Perfect World (Nasdaq: PWRD) Sells Chinese Online Reading Unit To Baidu (Nasdaq: BIDU) (PRNewswire)
Oceanwide Real Estate (Shenzhen: 000046) To Spend $200 Mln On First US Project (Chinese article)
GM (NYSE: GM) Recalls 1.5 Mln Cars In China Over Fuel Pump Bracket (English article)
When someone writes a future book about the history of telecoms in China, the period between 2008 and 2013 could easily be titled “The Lost Period For China Unicom (HKEx: 762; NYSE: CHU),” a reference to the numerous squandered opportunities for China’s second largest wireless carrier during that time. Now we’re getting word that this “lost period” could extend into 2014 and perhaps beyond, with reports that Unicom has undergone yet another major management overhaul that has become a regular occurrence at the company over the last 5 years. Read Full Post…
The headlines are swamped today with news about leading wireless telco China Mobile (HKEx: 941; NYSE: CHL), after Chairman Xi Guohua spoke an event in Guangzhou where he gave details on a wide range of issues as the carrier formally launched its new 4G service. I don’t usually discuss the bottom line until the end of my posts, but with so much news and new data in the headlines it does seem better this time to start here with that assessment. In this case it’s safe to say that China Mobile will embark on a massive spending spree to promote 4G in 2014, meaning we’re likely to see declining profits for much or all of the year. Read Full Post…
After 2 weeks of silence following the long-awaited issue of 4G mobile licenses, China Unicom (HKEx: 762; NYSE: CHU) is finally making some hints about its strategy in the new era of high-speed telecommunications. I’m usually quite negative about the company due to its disorganization and lack of focus, but for once I have to compliment it for a strategy that looks reasonably well conceived. Meantime in other 4G news, the final countdown to China Mobile’s (HKEx: 941; NYSE: CHL) iPhone launch may finally be nearing an end, with speculation that announcement of the long-overdue tie-up could come as soon as Wednesday. Read Full Post…
With the 4G telecoms era now formally begun, China’s 3 major telcos are suddenly rushing to give out more details about their plans in this new era of high-speed mobile communications. In the latest news from this fast-moving story, media are reporting that China Telecom (HKEx: 728; NYSE: CHA), the smallest of the nation’s 3 wireless carriers, will formally launch its 4G brand as soon as later this week. Meantime, leading telco China Mobile (HKEx: 941; NYSE: CHL) has disclosed pricing plans that look quite aggressive for its 4G service in the city of Chongqing. I should also add I’m not surprised that we haven’t heard anything yet from the nation’s third telco, China Unicom (HKEx: 762; NYSE: CHU), which has a recent history of slowness and disorganization in response to such major new developments. Read Full Post…
