China Mobile's Two-Month Campaign to Promote Mobile Terminals and Data Businesses

Strategic Insights -

China Mobile, the largest mobile telecom carrier in China, launched a two-month campaign promoting mobile terminals and data businesses in its business halls on May 1. The campaign, which features low-priced mobile phones from Nokia, Motorola, Sony-Ericsson, Samsung, and NEC, marks the first time China Mobile has sold mobile phones in its communication business halls nationwide. The campaign aims to provide a one-stop service for users, allowing them to purchase mobile phones and data business packages in one location. This move is seen as a bid by China Mobile to gain more initiative in the mobile phone terminal market and promote its data businesses, such as telephone book manager, MO mobile phone Internet, and MMS (Multimedia Message Service) pictorial.

Key Takeaways:

  • China Mobile launched a two-month campaign to promote mobile terminals and data businesses in its business halls on May 1.
  • The campaign features low-priced mobile phones from Nokia, Motorola, Sony-Ericsson, Samsung, and NEC.
  • This is the first time China Mobile has sold mobile phones in its communication business halls nationwide.
  • The campaign aims to provide a one-stop service for users, allowing them to purchase mobile phones and data business packages in one location.
  • China Mobile's move is seen as a bid to gain more initiative in the mobile phone terminal market and promote its data businesses.
  • The sale of bundled mobile phones has increased by 78% in 2005 over the preceding year, accounting for 10% of the overall GSM market.
  • Insiders predict that China Mobile's campaign will encroach on some market share of traditional mobile phone distribution channels.
  • Wang Yu, general manager of Frost & Sullivan China region, noted that carriers have been dominant in the mobile communications market in foreign countries, but this is opposite in China.
  • Foreign mobile telecom carriers, such as NTT DOCOMO, SK, and KDDI, have seen efficiency in promoting data business when they have a right of saying in the terminal market.

Statistics:

  • The sale of bundled mobile phones has increased by 78% in 2005 over the preceding year.
  • Bundled mobile phones accounted for 10% of the overall GSM market in 2005.
  • China Mobile's two-month campaign aims to promote mobile terminals and data businesses in its business halls nationwide.

Sources:

  • China Daily
  • SinoCast China IT Watch via COMTEX
  • Frost & Sullivan
  • SINO Market Research