The Development of Mobile Phone Uses in China

1
The Development of Mobile Phone Uses in China

• Wang Jing
• Department of Sociology
• Peking University

2
Contents

• Three Stages of the Development of Mobile Phone
  Uses in China
• The Development of the Network of Mobile
  Communications
• The Development of the Domestic Mobile Phones
• The Development of SMS in China
• The Development of WAP and GPRS in China
• The Development of Other Functions such as
  Colored Display, MMS and Mobile Games
• The Development of Xiaoling Tone

3
Part 1

• Three Stages of Development of Mobile Phone
  Uses in China

4
Three stages of the development of mobile phone
uses

• 1. The beginning years 1987-1993
• 2. The years that the higher consume mobile
  phones 1994-1998
• 3. The years that the populace consume mobile
  phones 1999-2004

5
In the beginning years1987-1993

• Mobile phone was a kind of unobtainable luxury
• 30,000RMB to buy a mobile phone,
• More than 10,000RMB as network access
  fee,
• Expensive service charges,
• Frustrating progress to buy or repair one
• Example Xu Feng
• bought m.p. in1987 number 901088 an
  NEC analog cellular one with an antenna
• 20,000RMB to buy a mobile phone, with
  which he could get a Toyota agricultural vehicle
• over 10,000RMB conversing fee monthly at
  the most

6
Three types of users in the beginning years

• the successful business men
• the high ranking officials working in
  government
• some special department like the army

7
The first models of mobile phone landed in China

• Motorola 8900

• Motorola 3200

8
The number of mobile phone users in the beginning
years 1987-1993
9
The change of living condition between 1987 and
1992
10
The mobile users of the second stage 1994-1998
11
the penetration rate of mobile phones from 1994
to 2004
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Reasons accounting for the high-speed increase

• 1. The reform in the field of Chinas
  telecommunications
• 2. The gradual entry of foreign mobile phone
  companies
• 3. The continuously increasing income of Chinese
  people
• Both 1 and 2 cause the competition between
  companies, thus resulting in lower prices

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1.The reform in the market of China
telecommunications

• 
  ---- China Post
• MPT local PTE----China Unicom----MII---- China
  Telecommunications
• (1979-1998) (1994)
  (1998) (1998)
• China Telecommunications----China Paging (which
  was taken over by China Unicom)
• (1999) ----China
  Satcom (which was Launched in 2001)
• 
  ----China Telecom took over fixed-line services
  (2000)
• 
  ----China Mobile handled mobile phone business
  (2000)

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2.The entry of foreign mobile phone companies

• Motorola
• Ericsson
• Nokia
• Siemens
• Phillip
• Alcatel
• Sony

15
the penetration rate of mobile phones from 1994
to 2004
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3.the improved living condition
17
Per Capita GDP (yuan) from 1994-1998
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The number of users

• 43.296 million, making China as the second
  largest market of m.p. in the world (at the end
  of 1999)
• 120.6 million, making China as the worlds
  largest m.p. market (in August 2001)
• 334.82 million, at the end of 2004
  

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Reasons of the growth

• 1. The take-off of domestic mobile phone which
  caused the price declining of both the foreign
  and domestic mobile phone
• 2. Support from the states
• 3. The keeping increasing living standard

20
Some enterprises and and scientific research
institutions jumped into the field of mobile

• On 14 February 1998, the seventh research
  institute of MII developed the first GSM model in
  China.
• In May 1999, Guangzhou South High-tech
  Corporation Ltd. was established on the basis of
  the seventh research institute of MII, which
  especially deals with the research, development,
  production and consumption of mobile phones.
• Bird (bodao) restructured itself from doing
  pager business to mobile phone business in 1999.
• Kejian which has a background of Chinese
  Academy of Science began to engage in the
  production and consumption of mobile phone.
• TCL, Haier, Konka (kangjia), Lenovo (lianxiang)
  which deal with traditional electric equipments
  go in for mobile phone industry too.

21
the first domestic mobile phone

• Amoi XG818 which
• being called Huaxia
• Yihao(China No.1)
• came into the market in 1998, with a price of
• 1,680RMB

22
The development of domestic mobile phone

• Bird restructured from doing pager business to
  mobile phone business
• Kejian has a background of Chinese Academy of
  Science
• TCL
• Haier
• Konka
• Lenovo

23
the government created new systems to protect
domestic mobile phones

• A regulation entitled the arrangements for the
  approval of network access of telecommunications
  equipment was issued by MII (1999). All
  telecom equipments used in China must obtain a
  NAL (Network Access License ) and a NAI (Network
  Access Indentifier )from MII.
• The aim of this regulation is to restrict
  too many foreign brands entering into China so as
  to protect the nation telecommunication industry.
  
• A same regulation of license (paizhao zhidu)
  was operated in the field of mobile phone
  production. So far, the MII has issued 49 pieces
  of licenses, including 30 for GSM(13 joint
  ventures and 17 domestic companies ), 19 for
  CDMA(only one is not belong to domestic company,
  which is obtained by Motorola).
• Cut down and finally abolished the network access
  fee of mobile phone (in 2001).

24
the government invested money to support the
domestic mobile

• The government invested 1.4 billion RMB
  from the network access fees to support the
  development of domestic mobile phones in 2000,
  and another 5 has also been drawn from the
  installation fees of fixed line as the research
  fee of domestic mobile phone for other five years
  successive years

25
the market rate of domestic mobile phone
26
Popular domestic brands

• Bird fighter among mobile phones , a good
  quality of connection, partner is Sagem of
  France, Coco Lee as the image representative to
  present its mobile phones fashionable feature
• TCL focus on the research and development of
  technique, invests an immense amount of money in
  introducing research talents, sets up distinctive
  brand culture and makes the mobile phone as a
  production of culture and a kind of art

27
Price decrease in the third stage1999-2004

• Bird Q268, from 1,980RMB to 1,480RMB
• Motorola V70, from 5,580RMB to 1,700RMB
• Sony Ericsson T618, from 3,600 to 2,750RMB
• Nokia, nearly all the models cut their prices
• Samsung (seldom dropped ) T408, under 3,000RMB
• Motorola E365, even sold at an extreme low price
  of 666RMB during the National Days

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The improved living condition1999-2004
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• Thank you !