BEIJING, Sept. 19 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), releases its article on China's mobile phone makers who expect to make a fortune through TD.
Currently, China Netcom is carrying out large-scale TD-SCDMA terminal tests. China Mobile will also start its second round of tests in September. After the tests are completed at the end of October, China Netcom will start to procure terminals. The final test results will directly affect the shares of procurement that various mobile phone makers will receive.
What is worth noting is that China’s domestic mobile phones have accounted for half of the tests organized by the operators. For foreign firms, only a few companies such as Samsung have gained entry. R&D of TD-SCDMA mobile phones as a 3G terminal is far more difficult than that of 2G terminals. Domestic brands can therefore be on an equal level with foreign brands in the test. This fully demonstrates the considerable strength that domestic mobile phones have in the course of TD. With the approach of commercial use of TD, domestic mobile phone makers face a completely new opportunity.
TD-SCDMA is the standard for 3G networks and is fully supported by the Chinese government. Domestic enterprises have taken a consistent lead in the areas of technology patents and product R&D. This advantage has gradually manifested as the TD industry matured: on one hand, domestic firms no longer need to pay huge patent fees to foreign enterprises, thus the cost of TD terminals falls significantly, and on the other hand, domestic firms get many preferential support policies from the government in the process of developing the TD industry. This lays the foundation for domestic mobile phone makers to get returns from the future 3G market. They are also expected to break the monopoly of European, US, Japanese and Korean firms in the 2G mobile phone market. Currently, domestic mobile phones only account for some 30% of the sales volume in the domestic market. Yang Ye, Secretary-general of the TD Industry Alliance said that as TD-SCDMA enters into trial commercial use, there will be a demand for 140 million sets of mobile phones in China in 2008. 20-50 million of them will support the TD Standard, accounting for 14%-35% of the total demand, and because China’s mobile market is so massive, it is an opportunity for all major domestic mobile phone makers.
Meanwhile, domestic brands are now facing tremendous challenges. The test results in the previous stage showed that domestic TD terminals still have various problems such as over-heating, short standby time, and many advanced application problems. There’s still a rather large stability and maturity gap to bridge from what consumers at large are expecting. In fact, mature terminal technologies are the only way for them to become competitive. Meanwhile, foreign giants are also pushing their products forward. LG, Samsung and Motorola have all had a positive attitude throughout and taken part in the terminal tests organized by all major operators. Nokia has also announced that it will introduce its own TD mobile phone.
It is clear that domestic enterprises will have certain advantages in the early days of the commercial use of TD. But, product competitiveness is key in determining whether that advantage can be maintained. The only way for domestic firms to truly seize these opportunities and take up a favorable position in the competitive market with foreign giants is to continuously improve the competitiveness of their TD terminals and gradually improve their overall strength.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliate to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Harbin, with over 300 professional consultants and industry experts. The company's business scope has covered over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, Asia-pacific area and Europe, by setting up agents in the U.S, Japan, South Korea, Australia, Singapore, Italy and Russia, along with the aim to be global.
Based on four major competitiveness of the powerful data channels, industrial resources, intensive knowledge and deep understandings of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Her customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits herself to become the No.1 brand for strategy consulting, the No.1 consultant for enterprise management and the No.1 expert for market research.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
