China Mobile CEO on Mobile Penetration, Music and 3G (CHL)

Includes: CHL, CHU, VOD
by: SA Editors

China Mobile (ticker: CHL) Chairman and CEO Wang Jianzhou spoke at the 3GSM World Congress earlier this week. From WirelessWeek:

....the biggest audience reaction came when Wang talked about the money China Mobile is making off new services. He said the total revenue of mobile music in China last year surpassed the entire revenue of the traditional music industry. A single song was downloaded 15 million times over China Mobile's network in the last six months, a rate 15 times higher than a typical best-selling music CD, he said.

Wang also said there is a big opportunity to increase those revenues because the mobile penetration rate in China is only 30 percent.

In response to a question by GSM Association Chairman Craig Ehrlich, Wang said the Chinese government has committed to awarding 3G licenses this year and also will have 3G networks up in time for the 2008 Summer Olympics in Beijing. He also said the government is expected to issue 3G licenses for the TD-CDMA standard because so many Chinese companies have intellectual property in the homegrown technology.

The CEO of the world's largest carrier group, Arun Sarin of Vodafone (ticker: VOD), said China is going to affect the way all other carriers do business. One of the biggest impacts for customers will be a dramatic decline in the cost of handsets, Sarin said, because carriers like China Mobile will drive down the costs through volume.

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