CommentsPosted: Thursday 03/09/2009 11:29
Whilst China Mobile and China Telecom are devoting marketing budgets into their online mobile phone application stores, China Unicom is also developing an online store focusing on WCDMA cell phones, reported Shanghai Securities News.
Industrial analysts reckon that application stores which held by telecom operators will bring the industrial chain more opportunities and energy. It needs a complete ecosystem, involving carriers, subscribers, cell phone manufacturers and application developers, to realize the success of 3G in China.
China Mobile (NYSE: CHL) officially released its online cell phone application store Mobile Market on August 17, provided a short term free of charge preferential treatment, and granted application developers 80 percent operating revenues. The Mobile Market store, or www.market.com, is a platform where developers can create games and other mobile phone applications and existing China Mobile subscribers can download such applications and services.
China Telecom (NYSE: CHA) was right after China Mobile in establishing online application store. According to an insider with China Telecom, the construction of its application store was almost finished as early as end-July, and would enter into internal test in September.
Meanwhile, an insider with China Unicom (NYSE: CHU) reveals that the carrier has organized several departments jointly developing the platform of its own application store, and formulating related stimulation policies.
Wang Liusheng, an analyst with consulting firm Analysys International, said that the three carriers' establishment of application stores was inspired by the success of Apple Inc.'s (NASDAQ: AAPL) App store in oversea market. Mobile internet has become an unavoidable trend for development. Carriers could enhance their management in the industry through establishing application stores. Besides, applications provided by the stores will improve subscribers' 3G experience, and telecom operators expect to exploit new models of service and business by operating the stores.
Nonetheless, whether the carriers could achieve success as App store does is still a question.
On the one hand, under current circumstance that 3G industrial chain is far from mature, it might be too early to promote 3G applications in full swing. On the other hand, Chinese subscribers are not used to purchase software after procurement of handsets, and the applications will confront risks of copyright.
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