China Telecom, the smallest of the three telecoms operators in China – but with more subscribers than Verizon, the US's second-largest carrier – is to start selling Apple's iPhone by the end of the year, according to sources.
Apple would have to sell the CDMA version of its phone, presently sold through Verizon in the US, to work with the systems used by China Telecom. But the move could potentially more than double the number of potential buyers of the device, which was only introduced in January: China Telecom has more CDMA subscribers – 105.9 million in May – than Verizon, which was the first carrier to get the CDMA iPhone this year.
The move will also help China Telecom cement more 3G users in a competitive market in which handset subsidies offered by carriers are squeezing margins.
China has 896 million mobile phone users, a number bigger than the entire population of Europe. There are three telecommunications operators: China Mobile Ltd , China Unicom and China Telecom.
So far, China Unicom is the only operator to sell iPhones after signing a three-year agreement with Apple in 2009, although it is not based on a revenue-sharing scheme, unlike some other operators in other countries. China Unicom uses GSM technology, the same as that used in the versions on AT&T and European carriers.
"The reason telecom operators are fighting for the iPhone business is because everybody is trying to grab as many 3G users as possible," said Jane Wang, an analyst at UK-based research firm Ovum. "The only way to keep costs down is to build up such a user base."
Apple reports its third-quarter results next week. Analysts are forecasting that it will have sold between 15m and 20m iPhones, with an average of 17m. In the first quarter of the year it sold 18.6m. It is expected to unveil at least one new iPhone this September.
In May, China Telecom chairman Wang Xiaochu told a news conference that the carrier had contacted Apple to launch the iPhone based on CDMA (code division multiple access) technology.
"It's expected to happen this year. China Telecom already has the required technology and it all hinges on the content of the agreement. As we all know, it's not easy to negotiate with Apple," a source close to the company, speaking on condition of anonymity, told Reuters.
China Telecom was expected to introduce the iPhone in November, said another source.
Apple would have to sell the CDMA version of its phone, presently sold through Verizon in the US, to work with the systems used by China Telecom. But the move could potentially more than double the number of potential buyers of the device, which was only introduced in January: China Telecom has more CDMA subscribers – 105.9 million in May – than Verizon, which was the first carrier to get the CDMA iPhone this year.
The move will also help China Telecom cement more 3G users in a competitive market in which handset subsidies offered by carriers are squeezing margins.
China has 896 million mobile phone users, a number bigger than the entire population of Europe. There are three telecommunications operators: China Mobile Ltd , China Unicom and China Telecom.
So far, China Unicom is the only operator to sell iPhones after signing a three-year agreement with Apple in 2009, although it is not based on a revenue-sharing scheme, unlike some other operators in other countries. China Unicom uses GSM technology, the same as that used in the versions on AT&T and European carriers.
"The reason telecom operators are fighting for the iPhone business is because everybody is trying to grab as many 3G users as possible," said Jane Wang, an analyst at UK-based research firm Ovum. "The only way to keep costs down is to build up such a user base."
Apple reports its third-quarter results next week. Analysts are forecasting that it will have sold between 15m and 20m iPhones, with an average of 17m. In the first quarter of the year it sold 18.6m. It is expected to unveil at least one new iPhone this September.
In May, China Telecom chairman Wang Xiaochu told a news conference that the carrier had contacted Apple to launch the iPhone based on CDMA (code division multiple access) technology.
"It's expected to happen this year. China Telecom already has the required technology and it all hinges on the content of the agreement. As we all know, it's not easy to negotiate with Apple," a source close to the company, speaking on condition of anonymity, told Reuters.
China Telecom was expected to introduce the iPhone in November, said another source.
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