UPDATE: CHINA NPC: China Unicom: Working To Introduce iPhone With WiFi Functions
March 06 2010 - 5:14AM
Dow Jones News
China Unicom (Hong Kong) Ltd. (CHU) is working with Apple Inc.
(AAPL) on introducing the iPhone with WiFi functions to China as
soon as possible, China Unicom Chief Executive Chang Xiaobing said
Saturday, without giving a more specific timetable.
Meeting with reporters on the sidelines of the National People's
Congress, Chang added that if the company releases a WiFi-enabled
iPhone, it will consider compensating current users who lack the
function by allowing greater use of the company's third-generation
network.
Government regulations had forced Unicom to launch the iconic
smartphone in China without WiFi, but newly revised regulations now
make it possible. WiFi allows users to browse the web via a
standard wireless Internet connection, rather than through an
operator's 3G network, thus potentially saving money on usage
fees.
Chang said the iPhone in China is priced similarly to iPhones in
other markets after calling plan costs are taken into account, but
added he understood people would like to see lower prices. China
Unicom will lower iPhone prices if conditions permit, Chang said.
He declined to comment on whether the company has any plans at
present to lower the price.
Not including discounts on service, Apple and Unicom charge $730
to $1,020 for the iPhone, making it more expensive than "gray
market" iPhones brought into the country through such places as
Hong Kong.
China Unicom is the only Chinese telecom operator that offers
the iPhone in China, though larger rival China Mobile Ltd. (CHL)
has repeatedly said it is in talks with Apple to offer the iPhone
in the country.
Chang said China Unicom and its parent company's capital
expenditure would fall this year, as it reduces spending on areas
such as broadband. The company said in March last year that it
expected capital expenditure to be CNY110 billion in 2009, up from
CNY70.49 billion the previous year.
"This year our overall investment will clearly decrease from
last year's level," he said. "But 3G development remains our
investment priority for 2010, we will absolutely not slow the pace
of 3G development."
Chang said there is tremendous room for growth of the 3G market
in China. He cited analyst forecasts that predict 3G users will
account for 20% of global mobile phone users by the end of this
year, while in China the proportion is much lower.
China Unicom had 145.7 million 2G users and 3.6 million 3G users
at the end of January. China Mobile had 3.9 million 3G users out of
a total of 527.4 million mobile users, making it the largest mobile
operator in the world.
Chang said China Unicom currently has no plans to invest in a
bank and doesn't think it necessary to take a stake in a bank to
develop mobile payments. But he stressed that Unicom is interested
in developing mobile payment operations. His comment comes after
China Mobile said earlier this week it is in talks with Shanghai
Pudong Development Bank Co. on taking a stake in the lender. The
move could help it expand into mobile e-commerce.
-By Aaron Back, Dow Jones Newswires; (8610) 8400-7701;
aaron.back@dowjones.com
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