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Nokia’s Lumia strategy is capitalizing on platform enhancement opportunities with location-based services, better photographic experience etc.
Updates: – Bing Translator on Nokia Lumia [Nokia Conversations, April 27, 2012]
When travelling overseas there are sometimes barriers that get in the way of having fun, or just being able to survive in far-away lands. The main one is often the language. Bin that old dog-eared phrase book and instead step into the future, with the Bing Translator app – your very own personal assistant when it comes to understanding what’s being said, or what’s the menu.
Gone are the days of looking blankly at the menu in a foreign restaurant and relying on the pictures for reassurance. No longer do we need to thumb our way through an out-of-date travel guide for something that resembles a translation of “Which way to the train station?”. With the Bing Translator app for your Nokia Lumia 610, Nokia Lumia 710, Nokia Lumia 800 and Nokia Lumia 900, you’ll be able to spend more of your holiday-time with your feet up, relaxing.
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As useful as that is, sometimes you need to get your point across using the spoken word rather than a written one. This is when thevoice function comes in very handy.
If you need to ask somebody where the nearest public toilet is, for example, just say it into the phone and you’ll be presented with a written version along with a speaker icon. When pressed this will read out your translated phrase in the language you’ve selected.
Alternatively, if you just want to quickly translate something, it may be easier to type the words in manually. You can do this using the keyboard function. Select what language you’re translating from and to, type in your text and voilà! The text has been deciphered.
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Bing Translator is free and is available for your Nokia Lumia 610,Nokia Lumia 710, Nokia Lumia 800 and Nokia Lumia 900.
– Lumia 900 Introduction to Trigger Smartphone Renaissance for Nokia and Microsoft [IHS iSuppli’s press release, Jan 18, 2012]
With the introduction of its critically acclaimed Lumia 900, Nokia Corp. has set the stage to regain some of its lost smartphone market share—and to re-establish Microsoft Corp.’s Windows Phone as a leading contender in the cellphone operating system (OS) business.Largely based on Nokia’s strong support, Windows Phone is set to regain the No. 2 rank in the smartphone operating system in 2015. Finnish-based Nokia in 2009 lost its second-place worldwide ranking because of rising competition from Google Inc.’s Android and Apple Inc.’s iOS.In 2015, however, Windows Phone will account for 16.7 percent of the smartphones shipped, up from less than 2 percent in 2011, according to the IHS iSuppli Mobile & Wireless Communications Serviceat information and analysis provider IHS (NYSE: IHS). This will allow Windows Phone to slightly surpass Apple’s iOS to retake the market’s second rank behind Android, as presented in the table below.Meanwhile, Nokia stands to stem its plunge in smartphone market share.
Once the perennial leader in global smartphone shipments, Nokia by the second quarter of 2011 had fallen to the third rank in the market behind Samsung and Apple.
“One of the hottest new products unveiled at the Consumer Electronics Show was the Lumia 900, a Windows Phone-based smartphone sporting a flashy set of features that makes it competitive with the best alternatives offered by the Android camp,” said Wayne Lam, senior analyst for wireless communications at IHS. “This hot product represents Nokia’s first step to reclaim its market share. Combined with Nokia’s efforts to drive the development of the Windows Phone ecosystem, the Lumia 900 and its successors will help Microsoft to reclaim its No. 2 ranking in smartphone operating system market share in 2015.”
Coming to America
The Lumia 900’s flashy feature set, along with Nokia’s strategy for selling the product, shows that the company is targeting the North American region, a market that, even in the height of Nokia’s dominance, historically had been an Achilles’ heel for the company.“The introduction of the Lumia 900 shows that Nokia believes the road back to smartphone dominance runs through North America,” said Francis Sideco, senior principal analyst for consumer and communications at IHS. “And the way to win North America is through its operator channels.”
The Lumia 900 was developed with North American market dynamics and smartphone users in mind, with the product having been designed in and launched first in the region—another departure from Nokia’s historical approach of repurposing devices designed in and for other parts of the world. The smartphone’s large 4.3-inch organic light-emitting diode (AMOLED) touch screen display, 12-megapixel camera as well as partnerships with Rogers, Telus, AT&T and T-Mobile are concrete examples of Nokia executing on this strategy.
LTE to the Party
Another feature of the Lumia 900 also illustrates how serious Nokia is about addressing the North American market: its support of the high-speed Long Term Evolution (LTE) 4G standard.“In the past, Nokia always introduced new technologies in its home European market first,” Sideco said. “However, for the Lumia 900—Nokia’s first LTE phone—the company initially is rolling it out in North America. This demonstrates Nokia’s commitment to re-enter the region.”
Furthermore, Nokia is targeting the mobile network operator (MNO) channel to sell its phones in North America. Nokia previously eschewed the MNO approach, limiting its penetration into the region.
The company likewise is leveraging Microsoft’s business/enterprise sales channels to appeal to corporate customers in the region, offering value-added services in a play for the enterprise sector. Such moves will position Nokia to compete with Research In Motion Ltd., whose Blackberry phones are popular among corporate users.
Opening Windows of Opportunity
Although Nokia is not the only seller of Windows Phone smartphones, the company is expected to dominate the market, accounting for 50 percent of all Microsoft OS-based handsets sold in 2012, IHS iSuppli predicts. The company’s share then is set to rise to 62 percent in 2013. Nokia’s portion of the market will begin to decline in 2014, as other companies increase their sales of Windows Phone products.Nonetheless, Nokia will drive the development and expansion of the Windows Phone market, opening up opportunities for other players, Lam said. “Because of Nokia’s support, apps developers will eagerly shore up the Windows platform. This will cause other makers of Windows Phone devices, such as Samsung and HTC, to offer more products supporting the OS—further expanding the market.”
Read More > Apple Leads with Mixed 3G Technology Adoption in Mobile Handsets
– Windows Phone will overtake iPhone in just three years’ time, say respected tech analysts [Daily Mail, Jan 20, 2012]
Windows Phone will become the number two smartphone operating system in the world by 2015, predict analysts iSuppli.
The analysts say that Android will remain the top operating system – as it is now – but Windows Phone will steadily rise until it overtakes iOS, the operating system used in Apple’s iPhones and iPads.
The key to the revival will be Nokia – and in particular its U.S.-focused Lumia 900 handset, which launched at this year’s Consumer Electronics Show in Las Vegas.
End of Updates
Congratulations, Nokia, now get to work [c|net, Jan 12, 2012]
On Monday, during an afternoon crowded with other press conferences, Nokia pulled in a packed house to introduce the Lumia 900 for AT&T. Given the leaks that preceded the announcement, the news wasn’t surprising. But that didn’t stop the Lumia from taking CNET’s Best of CES award in the smartphones category.
…The Lumia 900 won because it’s a great device (I’ll get to why in a moment), but there’s more to it than that. It’s also exciting because it marks the first clear and strong collaboration between a manufacturer, carrier, and Microsoft. And that’s something that the OS has missed for a long time.
Consider that unless you actually turned them on, it wasn’t clear that the earlier devices even had WP7. For the most part, it was almost as if the OEMs just took an Android phone, cleared the memory, and installed the new OS. Indeed, there was little unique about them beyond what was inside.
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Two other authorative appraisals:
– Why Windows Phones Are the Most Exciting Handsets at CES [Wired, Jan 12, 2012]
– Best phone of CES 2012: Nokia Lumia 900 [ZDNet, Jan 12, 2012]
And finally the company itself Interview: Chris Weber of Nokia [TheVerge, Jan 12, 2012]
With Nokia’s second announcement “milestone”, now for the North American market I was astonished to find quite another article even subtitled as NEWS ANALYSIS: Nokia has its sights set on becoming the most important company in the Windows Phone 7 ecosystem. The only trouble is its strategy will fall short for a number of reasons. [eWEEK, Jan 11, 2012]. Since the title goes as “Nokia’s Windows Phone Strategy Will Fail: 10 Reasons” I need to only list the reasons here and let people to read the article itself:
- The product designs are subpar
- Nokia’s brand loyalty is waning
- Microsoft has lost mobile customer trust
- Windows Phone 7 can’t attract enterprise customers
- Consumers would rather go with Android
- The price is cheap (but that’s not a good thing)
- The marketing is off
- The first device should have been the winner
- There’s no fanfare
- There’s a general lack of market understanding
Then I suggest an indeed in-depth analysis of Nokia’s strategy which should go as far as clear understanding of Nokia’s differentiators both within the Windows Phone offerings and outside of them. As a result of that the reader him/herself could decide what is the truth about the Nokia smartphone strategy.
Before looking into Nokia’s key differentiators for Windows Phone based Lumias here is a good presentation of the company’s latest overall approach with Lumias, especially for North America which is the lead market for them in the developed countries space:
Chris Weber on Nokia Lumia 900, Lumia 710 and North America [nokia, Jan 10, 2012]
Here “beautiful design” is mentioned as one of the most important differentiators for Lumias. We have already discussed this extensively in a separate post: Best practice industrial and user experience design – Nokia and Microsoft [Dec 17, 2011]. The second thing mentioned specifically here is the screen technology. Again, this has already been discussed quite extensively in The leading ClearBlack display technology from Nokia [Dec 18, 2011].
Although not specifically mentioned in the above video interview there were three unique differentiators already introduced with Lumia announcement in October:
– Free Nokia Music and MixRadio
– Free Navigation (i.e. location-based services, Nokia Drive and Nokia Maps)
– Free ESPN Sports Hub
which were described as part of the Nokia Lumia (Windows Phone 7) value proposition [Oct 26 – Nov 2, 2011] post.
Then we had an extensive post on Nokia’s North America centric approach for Windows Phone 7 [Aug 11 – Dec 20, 2011] from which a specific positioning information should be highlighted here as well: “Nokia and T-Mobile deliver a leading entry-level Windows Phone experience to the nearly 150 million Americans still to make the transition to smartphones.” Chris Weber is just mentioning that in the interview above so you could quite easily come by that if not included here.
So please keep in mind all those things when getting familiar with this next step in Nokia’s Windows Phone based smartphone strategy!
Nokia Lumia 900 [press.nokia.com, Jan 10, 2012]
Coming exclusively to AT&T in the coming months in cyan and matte black, the Nokia Lumia 900 has a 4.3-inch AMOLED ClearBlack Display for rich, bright images both indoors and out, faster connection speeds based on cutting-edge 4G LTE technology, and a long-lasting 1830 mAH battery for enjoying content all day.
The primary camera includes Nokia’s exclusive Carl Zeiss optics, with large aperture (F2.2) and wide angle focal length (28mm) for high-quality, uncropped images even in low-light conditions. In addition, the Nokia Lumia 900 includes a front-facing camera boasting a large aperture and a wide angle lens that ensures sharp, bright images for high-quality video calling, right out of the box
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Lumia 900’s unique “dual wide mode function” based on large aperture (F2.2) and wide angle focal length (28mm) camera for high-quality, uncropped images as was demonstrated by Nokia SVP, Kevin Shields on the Nokia CES press conference: Nokia Lumia 900 [Jan 9, 2012] from [11:26] on:
First Nokia smartphone designed specifically for the US features LTE, large display and exclusive applications [Nokia press release, Jan 9, 2012]
Las Vegas, US – Today at the 2012 International Consumer Electronics Show (CES), Nokia and AT&T announced the Nokia Lumia 900, the first of Nokia’s Windows® Phone-based range to feature high-speed LTE* connectivity. With Nokia’s largest display, the Nokia Lumia 900 delivers a rich content experience from a phone that still fits easily in your hand.
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Nokia’s third Lumia smartphone, the Nokia Lumia 900 builds on Lumia’s head-turning design on the outside and a rich social and Internet experience on the inside. People Hub is the quickest way to connect with friends with Live Tiles for real-time updates and a fast Web browsing experience with Internet Explorer Mobile.
“The introduction of the Nokia Lumia 900 with AT&T is another significant milestone in the ongoing rollout of Nokia’s global smartphone strategy,” said Chris Weber, president of Nokia Americas. “The Nokia Lumia 900 is designed specifically with the US in mind and the announcement of this collaboration with AT&T, in addition to other recent announcements, signifies a new dawn for Nokia in the US.”
The Nokia Lumia 900 benefits from a range of leading content experiences:
– The AT&T U-verse Mobile** app lets U-verse TV subscribers browse the U-verse TV program guide, schedule and manage their DVR recordings, and watch hit TV shows while on the go. The U-verse Mobile library includes more than 100 TV series and more than 700 TV shows from a variety of genres.
– Nokia Drive, available to download from Windows Phone Marketplace, provides free voice-guided, turn-by-turn navigation with a dedicated in-car user interface that turns the Nokia Lumia 900into a GPS navigation device.
– The exclusive ESPN sports hub is pre-loaded on Nokia Lumia smartphones, and provides a one-stop sports application for news, videos and scores.
– The CNN App for Windows Phonesprovides the latest news and video from CNN’s reporting around the globe and direct access to iReport, CNN’s participatory news community. Launching globally for free in the next month, the CNN App will be exclusive to Nokia users for 90 days.
– The Univision App will be exclusive to Nokia Lumia users in the U.S. and Puerto Rico for 18 months, delivering unique and exclusive Spanish-language content experiences, including Univision entertainment, sports and soccer coverage, plus news, cooking and local content for different U.S. markets – all in one App.
– A partnership with EA to bring over 20 of the world’s most popular games to the Windows Phone marketplace, coming first to Nokia Lumia devices.
“Nokia and AT&T worked hand in hand to bring the Nokia Lumia 900 to market. Our powerful 4G networkreally amplifies the benefits of the Nokia Lumia 900. Sharing high quality images and videos with its integrated social networking functions is faster than ever; content from U-verse Mobile is more enjoyable on the crisp 4.3-inch screen, and with its huge battery people can do more without worrying about recharging,” said Jeff Bradley, senior vice president of devices for AT&T. “Together, we are working to supercharge the ecosystem around the Nokia Lumia 900 and the Windows Phone platform.”
*Limited 4G LTE availability in select markets. 4G speeds delivered by LTE or HSPA+ with enhanced backhaul, where available. Deployment ongoing. Compatible data plan required. LTE is a trademark of ETSI. Learn more at att.com/network.
**U-Verse Mobile: Access to select content requires qualifying U-verse TV plan or monthly subscription fee, and WiFi connection and/or cellular data connection. Available content may vary by device and/or U-verse TV subscription and is subject to change. Data charges may apply.
Read more about the Nokia Lumia 900 on Nokia Conversations.
http://conversations.nokia.com/2012/01/09/nokia-lumia-900-born-for-the-usa
From the above listing of services you may miss the Free Nokia Music and MixRadio announced in October. In fact you shoul look into Lumia 900 US specification to find the equal (or even better) replacements:
Music Services
- Zune
- AT&T Radio
The Verge noticed a quite important hardware differentiator not mentioned anywhere:
Lumia 900 doesn’t have a Pentile Matrix display, Nokia confirms [The Verge, Jan 11, 2012]
Nokia’s official US Twitter stream and our own photos have confirmed a commonly held suspicion: the Lumia 900 doesn’t have a Pentile Matrix subpixel layout. Unlike the Lumia 800, its AMOLED display has its subpixels in an RGB arrangement instead of RGBG. The effect of this change is that you’ll get better fine-grain detail on the 900 while also avoiding the subtle color-fringing that the Lumia 800 exhibits on high-contrast edges (such as between black and white). Nokia has been somewhat evasive about this issue up until that tweet, perhaps in an effort not to diminish its other AMOLED displays. Still, we’d say this is easily the best undocumented upgrade of CES 2012.
Edward @mobile_ed 11 Jan 12
@NokiaUS is the Lumia 900’s display PenTile? No one has been able to get a straight answer so far.
Nokia US @NokiaUS 11 Jan 12
@mobile_ed No, the display isn’t Pentile.
Although Nokia calls the displays on all three of its Lumia devices ClearBlack — with that branding referring to the anti-reflective polarizer — the underlying display tech differs. See below for a comparison.
More information
On differentiation strategy:
The best report in my view is The Engadget Interview: Nokia CEO Stephen Elop at CES 2012 (video) [Myriam Joire, Jan 11, 2012]. Suggest to watch on the linked page since there is no possibility to embedd that here. Some quite important answers:
– Photography, cameras and that all experience is core part where we intend to differentiate in the future.
– A large amount of software development [is] happenning at Nokia to support our efforts on Windows Phone because we build on that platform. Something like Nokia Drive, as an example of location based services. Even in the are of photography, one can imagine that even (sic!) all Windows Phones have cameras, all will take pictures and all will have gallery, you can imagine an environment where unique software included in a Nokia environment, a Lumia product, to make sure the quality of photographic experience is better than evrybody else’s.
– So when you have a platform you can do a lot of things in and around of that.
– Differentiation with location based services, such as Nokia Drive, is just the beginning. There is so much more to come.
– Nokia specific APIs are possible later because Nokia has reserved the rigth to have such, although very much aware of the dangers of [platform] fragmentation.
– Lumia 900 will be available in a couple of months. Nokia will be very aggressive with the price. Even for the first time smartphone purchasers will be introduced.
The next on the list of best reports is PC Magazine’s Nokia CEO: MS Purchase Rumors Bogus [Jan 11, 2012]. Some exerpts from that written report which add information to all that given above:
PCMAG: How should we expect to see promotion and marketing for Windows Phone here in North America?
Elop:I think what you will see, and you’ll see us emphasize, is the most important thing for us to do is to introduce people to the concept that defines the Lumia experience, including the Windows Phone elements. What our work shows is that when someone has a Lumia device in their hand…their overall willingness to recommend the device to a friend goes up very high. People really enjoy the experience. But they have to see it to experience it.
We’ll take the steps in stores to make sure that sales associates understand how the products are differentiated. We’re seeding a large number of devices into the markets where we introduce the products, so large numbers of sales people and sales managers in stores have the devices in their hands…you’ll see us really try and connect the consumer with that first experience of Windows Phone, and any step that we need to take or any barrier that needs to be knocked over between those two points is what we’ll focus on in our marketing.
PCMAG: Within the Windows Phone ecosystem, there are other vendors who are putting out other phones with fancier specs.
Elop:I’m going to differentiate on “fancier specs,” because the specs that I appreciate are who takes the best picture, who has the best video-conferencing imagery and so forth. What we’ve done with the Lumia 900 is we’ve done a lot of work around the optics of the camera. We demonstrated this during our press conference; for example, with the primary camera, we showed how with a variation in focal length and wide aperture, our pictures…get a much wider collection of the information, regardless of pixel count or anything like that.
Part of this is part of our marketing opportunity, to help show people the results. Where is the best picture? And that is the spec I’m most interested in.
PCMAG: How do you communicate quality, as opposed to just “higher numbers are better?”
Elop: It’s the same argument on many different functional specs. You’ve got N+2 of these, we have N; is that better? Often it doesn’t matter, or it’s even worse. Part of our marketing opportunity is to help explain and show the experience, so when you pull out a Lumia and see the experience with that processor, with that screen and say, wow, this is fast, it doesn’t matter that someone else has something that appears to have more of something.
Then cnet’s Nokia CEO talks of Windows Phone foothold in U.S. [Jan 10, 2012] comes on the list. The notable excerpts giving additional information are:
The Lumia 900 was supposedly designed specifically for the U.S. market, but what does that mean? Which features were more critical to U.S. consumers versus others around the world?
Elop: For one, LTE is really important in the U.S. And it’s not as relevant right now in Europe, because there aren’t as many commercial LTE networks deployed. But here in the U.S. LTE is the centerpiece. But adding LTE costs more, and it also impacts the design of the product. You need a bigger battery, which drives the size and thickness of the device.
But larger screens are also much more popular here in the U.S. than in other parts of the world.
Years ago, Europe and Japan were much more advanced than the U.S. But that’s changed in the last 4 or 5 years. The U.S. is where we see much of the innovation and application development.
We also want to move the emphasis away from feeds and speeds. That’s what we were trying to show during the event yesterday when we showed the camera. There are a lot of things you can do to improve the camera on a cell phone through the science of photography with focal length and aperture.
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How important is the U.S. market to Nokia?
The U.S. is very important. This is where the innovation and app development is happening, and it’s being echoed around the world. So it’s very important for us to participate and be right in the middle of the innovation. We need to compete here so that when the innovations developed here land elsewhere we aren’t a step behind.
You’ve mentioned that LTE is very important in the U.S. market, and it will eventually be important elsewhere. But the frequencies that U.S. carriers are using for LTE are different than the frequencies used in other other parts of the world. And there was a recent report from the GSM Association that warned of a fragmentation issue. How does that affect Nokia as a device maker?
A similar thing happened when 3G was first deployed, and over time carriers around the world became more aligned. It’s to their benefit to get commonality. But for us it’s not an impossible technical problem. It creates more work for us. And it may be more expensive to build devices. But it can be done.
The bigger problem is around spectrum shortages. This is a problem that varies dramatically region to region. And different countries are handling it in different ways. I don’t know how to solve the problem, but it does land in the price of products.
Following that there is The Wall Street Journal with Nokia’s Chief Takes Aim at U.S. Market [Jan 10, 2012] with the following excerpt here:
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WSJ: Nokia has been a failure in the U.S. for years. What’s changed this time?
Mr. Elop: The very specific approach we’ve taken—and this does represent a shift in strategy for Nokia—is we’ve been more deliberate in the introduction of a device that’s specifically targeted at U.S. consumers. Start with the work we have done jointly with AT&T to ensure that it’s a 4G device, taking advantage of high-speed networks. That’s a crucial requirement for the U.S.
We have added capabilities like front-facing cameras, a long-lasting battery and a larger screen. In the U.S. that is an important part of consumer consideration.
WSJ: How can you expect to compete against Apple and Google in the U.S.?
Mr. Elop: Yes, there are some strong contenders on the field. But a key part of the reason behind selecting the Windows Phone platform for our smartphones was that we felt there was a fresh and different and contemporary user experience that stood apart from what has become common across both Apple and Android.
WSJ: Why would anyone buy this phone instead of an iPhone?
Mr. Elop: People are selecting these products [with the Windows operating system] because of ease of use. What you’re able to get is that complete experience without going into an application and coming out and then going into another. Instead, things like Facebook, Twitter and LinkedIn are integrated deeply into the experience. People look at that and see that’s a far smoother experience. There are people who are looking to make switches. I won’t say whether it’s specifically [from] iPhone or Android.
WSJ: Why not just forget the U.S. market altogether?
Mr. Elop: The first and primary battlefront is in the U.S. It’s in that market where a lot of the new thoughts are being delivered, where new applications are being generated. It allows us to take advantage of some of the innovation starting first in the U.S., for example the 4G networks.
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Finally a video Interview: Nokia CEO Stephen Elop [TheVerge, Jan 10, 2012]:
On the current Microsoft thinking alongside the increased market presence thanks to Nokia:
Interview: Joe Belfiore of Microsoft [TheVerge, Jan 11, 2012]
A “must to watch” for every serious person. Therefore no excerpts are possible. A “fundamental” interview with information not available before.
Interview: Microsoft’s Aaron Woodman talks Windows Phone [TheVerge, Jan 11, 2012]
Notable remark by Aaron Woodman about the business approach (not exact transcript):
1. Great products, because if not there will be no more excuses for sure
2. Retail, in …some places like US via carriers, because without it actual customers won’t meet Windows Phone
3. General market awareness, including the extension of general Windows brand awareness to the phone as well, since without as large as only possible the first two efforts could not succeed either, and also because this is the task Microsoft is expected to do (while the previous two are with partners)
Finally on “beautiful design”:
The Nokia Lumia 900 is simply better by design [Conversations by Nokia, Jan 10, 2012]
An in-depth look at the design of the world’s greatest Windows Phone with Jamie Langford from Nokia Design
LAS VEGAS, USA – The Nokia Lumia 900is designed with people in the United States in mind and Nokia Conversations has a unique insight into how it was crafted for one of the world’s most discerning mobile markets.
Jamie Langford explains how the Nokia Design team met the brief for the latest addition to the Lumia range of phones – which includes the Nokia Lumia 710 and Nokia Lumia 800.
“It’s all about media, with the large screen and sleek unibody, delivering a powerful statement.”
Jamie, who leads the industrial design team working on Symbian and Windows Phone products, says the Nokia Lumia 900 is a phone which puts content first, making it “instantaneous, responsive, and intuitive”.
“With faster network access, Nokia Lumia 900provides consumers noticeably faster Internet browsing and better video streaming,” he says.
“The large display is fantastic for any number of experiences from imaging to gaming to video chatting.”
He is talking about the Nokia Lumia 900′s stunning 4.3-inch AMOLED ClearBlack screen, which not only delivers superior viewing and touch experiences, but is also designed to reduce reflections. So you get crystal clear images, indoors and out.
“US consumers seek convenient access to multimedia content, so the combination of 4G LTE and the large display is very compelling.”
“As a matter of fact, Nokia Lumia 900 comes preloaded with AT&T’s U-verse Mobile which allows U-verse subscribers to browse TV program guide, schedule and manage their DVR recordings, and watch TV shows.
“And Nokia Lumia 900 has been designed with a large customized 1830 mAh battery in support of all-day usage.”
The blueprint is even more impressive when you realize that the advanced hardware which powers the mobile phone sits in a unibody case not much bigger than the display itself. The shape is cleverly crafted to sit comfortably in the hand.
This harmonious fusion of design and technology has all been achieved in a very short time.
Jamie continues:
“Our design team started work on Nokia Lumia 900 about a year ago. The challenge was to take the Nokia Lumia 800 to a larger display size with LTE architecture and re-enter the US market with AT&T.”
Luckily the potentially most challenging aspects of the joint venture were already taken care of, he says.
“When we started the collaboration with the Windows Phone design team, we discovered amazing similarity in the principles and approach with Nokia design.
“Reduction and simplicity drove the design of both the user interface and the hardware. The first result was the Nokia Lumia 800, and Nokia Lumia 900 extends this approach to a larger display.”
It’s a powerful combination. The Nokia Lumia 900 represents the full potential of these great brands working together. With AT&T’s high performance LTE network, that potential will now be experienced broadly in the US market.
And the Windows Phone user interface is a fantastic experience on the larger screen. With bold graphics, clear typography, and fast navigation, the phone allows people to spend less time figuring out what to do with it, and more time using it.
The success of previous Nokia designs has helped to achieve the seamless experience offered by the Nokia Lumia 900, says Jamie.
“The lineage from the Nokia N9 and Nokia Lumia 800 is evident in the Lumia 900. We continue to challenge how we make products – just like the Nokia N9 did.
“We are in a continuous learning and refinement mode, so we took lessons from both these previous devices.
“We spent lots of time with the program team to solve the physics of packaging a 33 per cent larger display with a larger battery and complex antenna architecture while meeting the product requirements of the US market. To do this in less than a year is a significant achievement.”
It’s the same approach, insisting on a human minimalist design, which has worked so well for Nokia giving their handsets a purity that others fail to match. And, it’s this incredible attention to detail which has resulted in a product that is beautifully balanced and easy to use.
“The Nokia N9 and Lumia 800 were derived from the same approach of extreme product making based on the principle of reduction and simplicity,” says Jamie, who joined Nokia in 1999. “The learnings and discoveries will continue to influence the way we design going forward.”
When you see the Nokia Lumia 900, you can’t resist picking it up and touching it. The unibody is a single piece of injection-molded polycarbonate plastic which somehow feels like metal. That’s because the premium plastic has been worked on by using machining techniques used for metals. And it provides a killer property not open to phones with metal cases. The specially-developed plastic allows outstanding antenna performance, resulting in fewer dropped calls and lost data connections.
The attention to detail is impressive. Even the product specs are printed on the internal SIM drawer to avoid any visual clutter on the external surface. The speaker holes have been individually milled to make them as small as possible, so they are less likely to collect fluff from a pocket.
And the audio jack is perfectly concentric to the form, and has been custom-made so it can be in the best place for use.
The framing around the active display minimizes any “dead banding” to give the highest area of visual screen in the most compact space possible.
The polycarbonate material gives the Nokia Lumia 900 yet another design advantage. Color. Color has always been at the heart of the Nokia brand. It has been taken to a new level. The unibody case is dyed all the way through, so it can never scratch off or wear away. It looks newer longer.
Early versions come in a stealthy matte-black and a bright cyan, or blue as most people call it. More colors will follow later in the year.
And the color thread runs through the accessories including Nokia speakers, Bluetooth headsets, even the protective soft covers; creating an end-to-end story that is coherent and consistent.
The signs are already good that people will love Nokia Lumia 900.
“Based on early customer reactions in the US, the design is considered very sleek and modern,”
“The LTE, 8 megapixel camera, and noise cancelation resonates well with people. Strong battery life was particularly appealing as well. And everyone appreciates the front-facing camera for video chatting.”
The Nokia Lumia 900 is simply better by design.
Marvell® ARMADA® PXA168 based XO laptops and tablets from OLPC with $185 and target $100 list prices respectively
CES: One Laptop Per Child – The New XO v3.0 [Jan 11, 2012]
The new OLPC XO v3.0 laptop is unveiled at CES 2012. Demoing at the Marvell booth (the company that developed the processor found on board the XO) Giulia D’Amico, Director of Business Development [at One Laptop per Child], talks about some of the features found on the new device.
Related information: Marvell’s SMILE Plug for the “Classroom 3.0” initiative [Feb 1, 2012]
One Laptop Per Child XO-3 [Yves Behar’s fuseproject news blog, Jan 9, 2012]
6 years of design development with Nicholas Negroponte and the non-profit organization he founded, One Laptop Per Child, has led to the next generation XO-3 tablet. More than 2.4 million children in 25 countries received the original XO Laptop, and these kids have been our inspiration to create the next generation of this educational tool.
One Laptop Per Child is a technology story about how to provide low-cost educational tools to millions of children. For those children, and for us, it is also a creative story about how to design specifically for young students. Every decision made by the OLPC engineering team and the design team at fuseproject has been about adapting technology to children’s needs at a cost that makes the tablet affordable for developing countries.
The first impression of the XO-3 is its extreme simplicity. The focus is on the screen, while the surrounding green rubber border provides a safe tactile grip for children’s hands. The back surface has a bumpy texture and integrates a rear-facing camera. The connectors, power switch and speakers are arranged on the bottom edge, facing the user. Our approach has been to minimize complexity, while delivering a high quality, and a heightened touch feel. There is playfulness in the way one can adapt the cover to different needs, while each design detail and material is chosen to deliver maximum value.
Fuseproject Unwraps The Third-Gen One Laptop Per Child: A $100 Tablet [Fastcompany’s Co.Design blog, Jan 10, 2012]
With the XO-3, OLPC unveils a design that will allow it to be customized for myriad markets.
Let’s get this out of the way. The OLPC XO-3, the $100 tablet addition to the One Laptop Per Child family, newly launched at CES 2012, is much thicker than the concept tablet, which they showed in 2009. Plus, it’s missing the ring!
The original XO-3 concept, featuring a slimmer design and that lovely ring.
See the earlier information on this blog here: Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75 [Nov 4, 2010 – July 20, 2011]
“They’re still the ultimate goal,” says Yves Béhar, founder of fuseproject and OLPC Chief Designer. The key component that enables the thinness of the concept tablet is flexible color e-paper, and that has been slow to come to market. When it does, the OLPC team anticipates that the robustness and low power consumption will make for an ideal very thin and lightweight tablet.
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Testing and getting back reports of usage on the ground is a core part of the OLPC design process. From their previous experience, they knew localization would be key for this product. For instance, one of the benefits of a tablet form factor is that keyboards and other interfaces are entirely done in software, so it’s easy to swap them out for different languages and milieus. Easier than doing it in hardware, anyway.
There is localization in the hardware as well. This is localization not for language but for the infrastructural conditions of the places where the tablets will be used. Every XO-3 comes with a removable cover. “The cover is the multiple personality side of the tablet,” says Béhar. They can be simple passive protection, but depending on the needs of a particular locale, other capabilities can be built in.
For example, one version of the cover comes with a solar panel on the inside along with a thin battery. When you are in school, using the machine, you can leave the cover out in the sun to power the battery. When you put the cover back over the tablet, the battery connects and recharges the machine. Béhar says they are also working on a version of the cover with antenna that will enable the tablet to communicate with satellites. There are more accessories to come. “We learned a lot with the original OLPC XO,” says Béhar.
Marvell and One Laptop per Child Unveil the XO 3.0 Tablet at CES
Also: The first Marvell ARMADA powered XO 1.75 laptop will begin shipping in March to school children in Uruguay and Nicaragua [Marvell press release, Jan 8, 2012]
Marvell (Nasdaq: MRVL), a worldwide leader in integrated silicon solutions, and One Laptop per Child, a non-profit organization whose mission is to help every child in the world gain access to a modern education, demonstrated a fully functional version of the much-anticipated XO 3.0 – a low-cost, low-power, rugged tablet computer designed for classrooms around the globe – at the 2012 International Consumer Electronics Show.
“We’re proud to introduce the XO 3.0 tablet, showcasing the design, durability and performance features that make it a natural successor for our current laptops, which have been distributed to more than 2.4 million children in 42 countries and in 25 languages,” said Edward McNierney, Chief Technology Officer of One Laptop per Child. “The XO 3.0 builds on many of the technology breakthroughs we made with the XO 1.75, including the use of the Marvell® ARMADA® PXA618 processor, resulting in a significant decrease in power consumption–a critical issue for students in the developing world.”
“Marvell is committed to improving education–and the human condition–around the world through innovative technology for Smartphones, tablets and a myriad of new cloud-delivered services. Partnering with One Laptop Per Child is one way we can deliver a revolution where it matters most–to benefit children in some of the poorest places on the planet,” said Tom Hayes, Vice President of Corporate Marketing at Marvell Semiconductor, Inc. and a member of the OLPC advisory board. “Marvell has been with One Laptop per Child from the start and we’re doing whatever it takes to help the organization realize its mission of providing meaningful educational opportunities to the 500 million school-aged children around the world.”
Marvell and One Laptop per Child also announced today that the XO 1.75 laptop will begin shipping to customers in March 2012. Over 75,000 units of the XO 1.75 have already been ordered by OLPC projects in Uruguay and Nicaragua. The XO 1.75 uses the Marvell ARM-based ARMADA PXA618 SOC processor, which compared to the earlier XO 1.5, maintains performance while using only half the power. The XO 1.75 features a sunlight-readable screen and all the other features and design characteristics of the two previous versions of the XO laptop.
The XO 3.0 tablet will also feature the Marvell ARMADA PXA618 SOC processor and Avastar Wi-Fi SOC. Other features include:
- Unique charging circuitry; the XO 3.0 is the only tablet that can be charged directly by solar panels [see that above as built into the internal side of the protecting cover], hand cranks and other alternative power sources
- Standard or [a somewhat more expensive] Pixel Qi sunlight-readable display
- Android and Linux operating system support
A First Look at the new XO 3.0 tablet from One Laptop Per Child [Jan 10, 2012]
A Look At OLPC’s XO 3.0 Tablet’s Solar And Kinetic Chargers [Forbes, Jan 8, 2012]
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Due to the simplicity of the model, McNierney expects to see a lot of interest in the solar cover. Since the panel produces 4 watts of energy and the tablet uses 2 watts, one hour of solar charging should enable 2 hours of tablet run-time.
The hand crank charger is more experimental. Like the solar cover, it is separate from the core tablet but connects via a port. It also hearkens back to the first concept designs for OLPC which had built-in hand cranks on their sides. That feature was eventually dropped for structural weakness reasons.
That history may make OLPC customers leery of the new hand cranks. McNierney acknowledged that most customers may bypass the hand cranks but he insisted they are usable. (Six minutes of hand-cranking should produce an hour of run-time.) To test the feature, the organization took out the tablet batteries to see whether the devices could run just by hand crank. The test worked, said McNierney. “If something can generate DC power, we can use it,” he added.
OLPC isn’t specifying which energy source customers need to use. McNierney pointed out that different countries will have their own preferences, based on culture, climate or other factors.
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This effort goes back quite a time: Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75 [a collection of information on this blog, Nov 4, 2010 – July 20, 2011]
One Laptop Gets $5.6M Grant From Marvell to Develop Next Generation Tablet Computer [Xconomy, Oct 4, 2010] [see that as built into the internal side of the protecting cover]
The One Laptop per Child Foundation and Santa Clara, CA-based semiconductor maker Marvell have cemented a partnership announced last spring, with Marvell agreeing to provide OLPC with $5.6 million to fund development of its next generation tablet computer, OLPC founder Nicholas Negroponte tells me. Negroponte says the deal, signed in the past week or so but not previously announced, runs through 2011.
“Their money is a grant to the OLPC Foundation to develop a tablet or tablets based on their chip,” he says. “They’re going to put the whole system on a chip.”
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– One Laptop per Child and Marvell Join Forces to Redefine Tablet Computing for Students Around the World [Marvell press release, May 27, 2010]
– Marvell Joins ‘One Laptop Per Child’ Initiative [Marvell press release, May 8, 2006]
OLPC XO-1.75 Costs $185 and Starts Shipping in March [OLPC News, Jan 7, 2012]
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With regard to the price I confirmed with OLPC Association’s CFO Bob Hacker that the XO-1.75’s list price will be $185. As with the XO-1 and XO-1.5 the exact price depends on a number of variables such as the specific hardware configuration (RAM and NAND flash for mass storage) and other details.
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An interesting detail here is that it seems like Uruguay decided to go for 8GB of NAND flash for mass storage while Nicaragua opted for 4GB.
XO-1.75, XO-3, Nell? – What Will OLPC Show at CES 2012 Next Week? [OLPC News, Jan 8, 2012]
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The XO-1.75 looks identical to the XO-1 and XO-1.5 from the outside yet its hardware guts are quite different as OLPC switched from an x86 architecture to an ARM platform. I had previously expressed doubts whether this move would really led to a much improved battery life. However reading an e-mail that Richard Smith (OLPC Foundation’s Director of Embedded Engineering) sent out in November it seems like my guesstimates where quite off as he mentions feeling…
“…safe in saying that regardless of what you do on the 1.75 you are going to get 3.5 hours of battery life. Period.”
Additionally he wrote:
An interesting data point is that the 1.75 is the first laptop of the XO series that has ran 100% from a solar panel for an extended period. During my solar testing I often swap in different batteries. The 1.75 can consistently survive battery removal under moderate solar conditions when connected to the OLPC 10W solar panel.
Aside of these promising power characteristics the XO-1.75 also includes a three-axis accelerometer which people like Bert Freudenberg and Saadia Husain Baloch have already used for some cool things such as this little eToys project or an “etch-a-sketch” program in Turtle Art.
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XO-1.75 [wiki page on laptop.org, Dec 12, 2011]
The XO-1.75 laptop is a refresh of the XO-1 and XO-1.5 laptops. In our continued effort to maintain a low price point, OLPC is again refreshing the hardware to take advantage of the latest component technologies. This design, while separate from the XO-3 tablet effort, uses the same very low power electrical design. It continues to use the same industrial design and batteries as XO-1. The design goal is to provide an overall update of the system within the same industrial design and external appearance. Overall, the target was to greatly improve the power consumption while reducing the purchase cost.
XO-1.75 machines will ship with a new software release based on Fedora 14, including both Sugar and GNOMEsoftware.
XO 1.75 C1 [wiki page on laptop.org, Dec 5, 2011]
XO-1.75 Laptop C test model 1, also known as C1.
The C1 are the last prototypes of the XO-1.75 built. Electrically, these are very similar to the B1 prototypes. A small number were made in September, 2011, for final testing.
These are the first XO-1.75 laptops marked as such. XO-1 laptops have a smooth hinge cover, and XO-1.5 laptops have three small raised dots inline on each side of the hinge cover. XO-1.75 laptops have seven small raised dots on the hinge cover, arranged in two rows.
While three version of C1 were built (SKUs 200, 201, and 202), testing out various alternate component suppliers, from a software and functionality point of view all versions should be identical. Unlike the B1 prototypes, all C1 laptops provide SDRAM for the DCON.
Photographs:
If you disassemble the laptop (instructions), you will see:
The XO-3 tablet debuts at CES [the official OLPC blog, Jan 7, 2012]
Our XO-3 prototype is debuting at CES this weekend, and will be shown off next week at the Marvell booth. …
If you are heading to CES, you can stop by and see it yourself! Ping Giulia to set up an appointment, or drop by the Marvell booth. Charbax of olpc.tvwill be on site as always, recording some video and interviews.
The XO-3 will sport a 1024×768 Pixel Qi screen, half-gig of RAM, and a Marvell Armada PXA618 chip. Some of the soft cover designs proposed so far include a built-in solar panel. More updates coming over the next week; for now, here is our CES press release.
The XO-3 is still planned to enter production at the end of this year.
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[debuting at CES >>>] The $100 OLPC Tablet Is Really Real [Gizmodo, Jan 7, 2012]
Building on its success with laptops designed for developing countries, the One Laptop Per Child project is set to unveil a long-awaited tablet at CES next week. Here’s what you get for $100.
The OLPC has been kicking around the idea of a super-affordable tablet for over a year. Originally known as the XO-3, but now dubbed the XO 3.0, the tablet will feature an 8-inch 1024×768 screen with some models also offering a PixelQi 3qi display that mimics E-paper. A Marvell Armada PXA618 chip and 512MB of RAM reside in the tablet’s ruggedized shell and will run either Linux Sugar or Android OS.
With a bare-bones feature set, the OLPC tablet should cost about $100 per unit—up from the original estimated price of $75, but still way cheaper than virtually any other tablet on the market.
The coolest feature that the XO 3.0 can be powered by hand-cranking—to the tune of 10 minutes of run time for every minute of work. Why isn’t this available on, well, everything? I’d gladly spin a handle for a few minutes if it meant I wouldn’t have to beg for outlet time at coffee shops, carry spare chargers, and constantly dread the “low battery” notification. [Electronista]
XO 3 A1 [wiki page on laptop.org, Dec 12, 2011]
XO-3 Tablet Alpha test model, also known as A-test or A1.
The A1 was the first prototype of the XO-3built. The bring up happened in early December 2011.The number of boards obtained was small, and distribution was limited to demonstrations, hardware testing, and UI development. Much of the software development is being done on XO-1.75 laptops, due to the similarities.
- Bare circuit board, no case or display
- Rev. A motherboard
Photographs:
Please understand that this motherboard is still in the process of slimming down, and despite being less than half the area of an XO-1.75 motherboard, will continue to get smaller in coming months. We also intend to restore an internal SD slot, allowing for storage expansion and repair of motherboards with failed eMMC devices. –wad
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Marvell ARMADA 618 Application Processor
1GHz, 1080p Encode/Decode, 16MP ISP, 45 MTPS 3D, Security Enabled
[Marvell product brief, May 3, 2010]
PRODUCT OVERVIEW
The ARMADA™ 618 processor is Marvell®’s latest application processor targeted for next generation, high-definition (HD)-capable smartphones. Featuring a gigahertz-class CPU, integrated full HD 1080p encode and decode, an integrated ISP capable of 16MP image capture, an integrated audio processing engine for extremely low power audio playback and exceptional high quality sound and advanced 3D graphics, the ARMADA 618 consumes extremely low power, while maintaining high processing performance at attractive price points. This allows manufacturers to deliver high-performing features in lightweight form factors, with the extended battery life that consumers look for in their smartphones.
The ARMADA 618 is based on a 1GHz Marvell-designed ARM v7-compatible CPU offering best-in-class performance. An integrated 3D engine renders 45M triangles-per-second for an immersive gameplay experience, via a complete floating point pipeline and unified vertex and fragment/pixel shading, to generate contrast-rich scenes in high definition resolution and color, ensuring complete compatibility with the most hotly anticipated mobile game titles.
With respect to video, the ARMADA 618 features Marvell’s award-winning Qdeo™ technology with an integrated video accelerator that can seamlessly encode and decode h.264 High Profile 1080p video at 30fps. In addition, the ARMADA 618 incorporates a complete Image Signal Processor which can capture high resolution color pictures as well as stream 1080p video at 30fps. This enables smartphones to access the latest HD content from the web, record and playback HD videos and capture high quality images previously only seen in SLR-class cameras.
The ARMADA 618 offers support for high performance LPDDR memory, a highly flexible display controller capable of four simultaneous displays at up to 2K x 2K resolution and a highly robust security subsystem that includes a secure execution processor. The ARMADA 618 also features support for the next generation of peripheral interfaces, through support for MIPI DSI display, MIPI CSI camera, MIPI HSI and MIPI SLIMbus. Additional peripheral interfaces supported include USB 2.0 HSIC, SD/SDIO/MMC, eMMC, HDMI w/PHY and a standard set of lower bandwidth peripherals. Legacy peripherals such as Parallel LCD and Parallel Camera interfaces are also supported. The ARMADA 618 offers optimized OS support for Linux, Android™, Windows Mobile and Flash® 10, as well as industry standard APIs. Available in both a 12x12mm POP and a 12x12mm Discrete package, ARMADA 618 customers will have one of the broadest, most flexible choices of platform in the industry to create truly innovative and marketable products.
BLOCK DIAGRAM
Fig 1. Marvell ARMADA 618 Application ProcessorAPPLICATIONS
The Marvell ARMADA 618 platform offers customers a development platform for creating ARMADA 618 based smartphones. The platform incorporates the ARMADA 618 processor, the Marvell Avastar™ 88W8787 for 802.11n Wi-Fi, Bluetooth 3.0 and FM tuner support as well as a Marvell 3G baseband for high speed cellular data and voice access. The platform demonstrates the full suite of Marvell technologies for smartphone applications in a compact form factor that is easy for developers to use with powerful expansion options for adding more platform capabilities.
Social Good Summit : Day 1 : Nicholas Negroponte [Sept 28, 2011]
One Laptop Per Child Redux [Jeff Shear on Miller-McCune, Dec 23, 2011]
Declared dead just two years ago, the plan to provide every child in the developing world with a computer shows signs of life.
The New York Times called it, “The Laptop That Will Save the World,” while the renowned Computer Graphics Laboratoryat Stanford University referred to it as “a monumental feat of engineering and design.”
Dressed up like a toy in a Kermit-the-Frog green and white plastic shell, this durable little computer was the progeny of the nonprofit organization, One Laptop Per Child.
When the laptops went into mass production in November 2007, OLPC’s ambitious plan aimed to place a free computer into the hands of the world’s 1 billion impoverished children. Education is the exit ramp off the endless road of poverty, the organization argues, and because young people naturally take to computers, the idea is to use them as a way to bridge the so-called “digital gap” between the haves and the have-nots. The little laptop is seen as both a virtual classroom and teacher, with playful software designed for self-learning and an Internet connection to the Internet Archive, which has a dedicated OLPC gateway to its 1.6 million book library.
But in 2009, Scrooge came knocking on the organization’s door, accompanied by One Laptop’s own three ghosts: rough economic times, soaring costs, and technical glitches. Tumbling financial markets crippled donations, while its skittish supporters, chiefly philanthropies and foundations, abandoned it for greener pastures. Desperate to stay afloat, it fired half its staff, and cut pay to the 32 who remained.
These days, the company has been reorganizing, rehiring, reinventing, and aggressively making its way into the developing world. As many as 3 million of the nonprofit’s laptops are now in the hands of children and educators in 46 countries spanning 25 different languages. The company has staffed back up to 53 employees, although some are temporary software writers.
And in early 2012, a new super-low cost tablet, the XO-3, will debut, with a promised price-point of $75 for the nonprofit. Significantly, the XO-3 will be available outside OLPC. One Laptop hopes to prod the big manufacturers into using their distribution channels for their own branded versions of the tablet.
This is a big change for OLPC, an acknowledgement that they aren’t the only kid on the cheap-computer block. While iPads, Kindles, and other low-cost computers and tablets are sweeping the market, none of them are designed specifically as educational devices for primary and secondary school students. Intel’s Learning Series does make the Classmate netbook, but even discounted it goes for $505.
How does a computer designed for education differ from one used for education? “A child can do anything to this software and never break it,” explains Walter Bender, a co-founder of OLPC and a former director of the MIT Media Lab that created Sugar, the XO’s user interface. “Why? When you make mistakes you’re learning. When you don’t, you’re being incremental. Yet if penalty is high for making mistakes, you stop taking risks, you stop learning. We try to give kids a safe place to do trial and error, to go out there and do it in a way they can’t screw up.”
OLPC turnaround has reignited its bravado and swagger, stunts included.
Next week, the company plans to drop XO-3 from a helicopter — Santa has gone high tech — into the hands of some the poorest 5-to-8-year-olds in the remotest regions of the world. (Sierra Leone, Tanzania, and Liberia are likely candidates ) In a recent interview appearing in New Scientist, the father of OLPC Nicholas Negroponte explained that the idea is to discover how much a child working on his own can learn from a computer with just “modest” intervention. In turn, OLPC will learn from the kids. After two years, trained researchers will return to the site to evaluate its effects.
• • • • • • • • • • • • • • •
Negroponte is recognized as one of the forefathers of the digital revolution. As chairman of MIT’s renown Media Lab, Negroponte announced the birth of the One Laptop Per Child project in January 2005 at the World Economic Forum. He carried around a prototype of a $100 laptop to meetings, and by the time he had packed his bags to fly home, he had collected letters of intent from several national leaders to buy as many as 9 million. That was very good news because the resulting economies of scale lowered costs to OLPC.
Negroponte soon sadly discovered that a letter of intent was a long way from a hard-boiled contract. Manufacturers who saw the original numbers and leapt on board to churn out laptops for $100 reversed themselves when actual orders came in for fewer than 800,000 machines, and their prices doubled.
The price hike hurt Negroponte’s grand design and also scuffed his reputation. He failed to deliver on his out-sized promises. At a well-attended technology conference in 2006, he told his audience his year-old operation — which had yet to begin mass production — would not launch without five to 10 million units in the first run. Further, he predicted that by 2008, OLPC would have 100 million to 200 million computers in place around the world.
Negroponte was both boastful and crotchety, a formula for making enemies. He was rude, too, scoffing at the idea of offering test runs to prospective countries. Speaking before a large audience, he said, “When people say we’d like to do three or four thousand [OLPC laptops] in our country to see how it works. [We say,] ‘Screw you. Go to the back of the line. …’”
And it wasn’t just Negroponte’s attitude that didn’t sit well with partners. A $100 computer selling for more than $200 looked to them like a raw deal. Some donors thought that the high cost of the laptop was eating up money better spent immunizing children from measles and providing mosquito netting to fight off malaria.
Even Miller-McCune piled on with a widely quoted story by Timothy Ogden titled “Computer Error,”which suggested that the downfall OLPC might be a blessing in disguise. Ogden argued that, “If the goal is improving education for children in the developing world, there are plenty of better, and cheaper, alternatives.”
In the world of foundations and philanthropies, charities with donations under seven-figures, view organizations like OLPC as a zero-sum game. A dollar spent here is a dollar unavailable to spend there, a large part of Ogden’s thesis. Holden Karnofsky, co-executive director of GiveWell, which evaluates charities says, “If someone only has $100,000 to donate, they’re not going to buy computers. They’re going to give to a proven global health program.”
Large foundations, however, don’t see giving as a zero-sum game. “They look for programs that work,” says Rob Reich, at the Center for Philanthropy and Civil Society at Stanford University. “To use a phrase from a different realm, they want to maximize their return on investment.”
And that’s exactly what Negroponte was trying to do as he pulled OLPC out of its 2009 tailspin. That September, he split OLPC into two nonprofits. One was a cutting-edge research foundation based in Cambridge, Massachusetts, which he chaired. The other was an association based in Miami and run by Rodrigo Arboleda Halaby, a longtime Negroponte associate and former classmate at MIT.
The business end of OLPC was left to Arboleda, whose mantra is, “OLPC is a mission and not a market.” OLPC has ever been out to make money. The association doesn’t talk about sales; it talks about “deployments.” A high-powered entrepreneur and former trustee of Save the Children, Arboleda made two significant changes to OLPC. First, he focused the association’s energies where it had its earliest and greatest successes: Eighty-percent of OLPC’s first million sales came from Latin America.
Arboleda also looked to Latin America to restaff. He hired Roberto Interiano, a former vice minister of foreign relations for El Salvador, to manage overseas operations. Dr. Antonio Battro, an Argentinian researcher in the field of “neuroeducation”became the association’s chief education officer. It was a good fit; OLPC already used his research, while Battro says, “We believe the computer gives the child access to higher levels of logical thinking.”
Arboleda’s second big move was to take OLPC off life support. “Our original financial model was devoted to donations,” he says. “You can’t go with hat in hand begging.” The association is now a contract-driven enterprise, working chiefly through governments.
And one more thing: the new tablet being introduced early next year aims square at Africa’s sweet spot. Rwanda has already deployed 110,000 OLPC laptops as part of an effort to create an industrial/service-based economyby 2020. Ten years into the program, its Ministry of Education claims nearly universal school enrollment and a dropout rate falling from 47 percent to 25 percent. Arboleda says he is thinking about dubbing 2012 the Year of Africa.
Matt Keller, OLPC’s “global advocate,” and his family will be moving to Addis Abbaba, Ethiopia, where he plans to make the Horn of Africa his base in the next nine months. “What we’re asking ourselves,” says the former legislative director of Common Cause and senior program officer for the U.N.’s World Food Program, “is whether children in non-literate communities with no access to schools can teach themselves to read by using the XO-3.”
A hundred million African children have no access to schools, let alone electric power. The back of the XO-3 tablet is a solar panel used for re-charging.
“The XO-3 is a world in a box that can be accessed by any child anywhere. My chief aim is to reach kids off the grid in remote sub-Saharan Africa,” he says of the project also being backed being backed by the artificial intelligence unit at MIT. “We want kids to be connected to other kids everywhere.
“It’s not a choice between mosquito netting, health and education,” he insists. “It’s not a zero-sum game. When kids are educated, good things happen. A generation of children who learn to think critically, analytically and rationally will change the status quo.”
Happy New Year! Reflections on OLPC in 2011 [the official OLPC blog, Dec 31, 2011]
As we prepare for 2012, here is a quick look back at the past year of OLPC. We distributed our two millionth laptop (now 2.5M), and our largest programs in Latin America (Peru) and Africa (Rwanda) grew steadily. Austria’s Julieta Rudich and Journeyman Pictures produced a fine documentary about Plan Ceibal in Uruguay (the world’s first complete olpcprogram), and Peru provided XOs and compatible robotics kits to all of their urban schools.
In East Africa, we expanded our work with African nations and donors to improve education for children across the continent. We were invited by both the African Union and the UN to open an OLPC office in Addis Ababa, Ethiopia. Addis is a major hub for African diplomacy, and the support there for our mission has been stunning. We have become a full partner of the East African Community in Tanzania, and our recent country report on Rwandahas driven further interest in the region.
A Rwandan student workshop in KigaliIn the Middle East, we continued working with the Palestinian Authority, Israel and the UN to provide thousands of Palestinian children with XO laptops, integrating them into schools. It took ten months to work the laptops through customs in Gaza. But at a forum in Ramallah in June, teachers from Bethlehem and Gaza showed how OLPC was helping to end isolation and to excite learning for their children. Third grade girls in refugee camps are teaching others and writing computer programs. The testimony of these women to the power of persistence was extraordinary.
In Afghanistan, we founded a regional OLPC Afghanistan office, and briefed General Petraeus on the project. We believe that one laptop per child and connectivity, across the country, will transform this generation and their communities. Today we are working with the Education Ministry to support four thousand children in 10 schools, and are looking into expanding in Herat Province.
On the technical side, we focused on driving down laptop power needs by switching over to ARM chips in the XO-1.75 and upcoming XO-3 tablet. The tablet should be chargable by a solar panel that could serve as its carrying-case. We are studying new waysto help children learn to read, including where there are no schools at all.
In society, the idea that every child should have access to their own computer and to the Web – as a basic part of learning, whatever their family income – continued to spread. In addition to ongoing national programs in Argentina, Portugal, and Venezuela (for secondary students), two full-saturation laptop programs for older students are developing in India – an inexpensive tablet is being distributed to university students, and in Tamil Nadudual-boot laptops from six different manufacturers are being provided to secondary students.
Reaching the least-developed countries in the world remains our goal and our most difficult challenge. While our largest deployments are funded directly by implementing governments, rural successes may be driven by foundations, NGOs, and individual donations. OLPC Rwanda, today one of the largest educational technology projects in Africa and part of a ten-year government plan, was seeded with ten thousand laptops given by Give One, Get Onedonors.
So to our supporters: thank youfor your development, contributions, and collaboration, your feedback from the field, and your encouragement! This is all possible thanks to you.
Happy New Year to all — may 2012 bring you inspiration and discovery. We have some excellent surprises planned for the new year. And we would love to hear your reflections as well — please share stories from your own school projects in 2011.
OLPC’s XO-3 Tablet to Debut at CES [IDG News, Jan 7, 2012]
One Laptop Per Child’s XO-3 tablet is ready to ship after years in the making, and working units will be shown next week at the Consumer Electronics Show in Las Vegas, OLPC founder and chairman Nicholas Negroponte said.
The tablet has an 8-inch screen and will be priced at less than US$100 as originally planned, Negroponte said via e-mail. Like OLPC’s XO-1 laptop, the XO-3 will be offered as an educational tool for children in developing countries. Negroponte declined to say if it will also be sold at retail.
The XO-3 was first announced in late 2009 with availability targeted for early 2012. At the time, skeptics questioned OLPC’s mission, accusing it of losing its educational focusin favor of designing hardware at unachievable price points.
The XO-3’s on-time release will help erase unpleasant memories of the XO-1 project, for which the laptop shipped late and at double the promised $100 price tag.
The XO-3 uses a Marvell chip with an ARM-based CPU running at 1GHz and will run Linux-based software such as Google’s Android or Chrome operating systems. It will be offered with optional technologies, such as a power-saving Pixel Qi screen and a solar charger for the battery.
“[The XO-3] price will be $100 or lower. But this time there are options, so we cannot guarantee the final price,” Negroponte said
The tablet provides about eight to 10 hours of battery life, though some audiences may choose a smaller battery capacity to reduce the purchase price, said Ed McNierney, chief technology officer at OLPC.
The internal batteries can be charged by “just about anything that produces DC power,” he said. The charging options include solar panels or hand cranks, and a study is under way to see if the battery can be detached and the tablet powered directly through a solar cell.
“Our ability to accept erratic, variable, noisy power inputs is extremely important to us, and something no other tablet has even attempted,” McNierney said.
The tablet is also available with a traditional LCD screen. But the optional Pixel Qi display absorbs ambient light to brighten the screen, reducing power consumption and extending battery life.
Eight inches is the right size for the display, McNierney said, because a 9.7-inch display is too big for children to handle, and 7 inches “seems too small to be usable.”
Microsoft’s Windows will not run on the device, only Linux-based OSes, Negroponte said. The nonprofit has abandoned its pursuit of Windows for tablets, even though Microsoft’s upcoming Windows 8 will work on ARM processors. Negroponte has said the tablet on display at CES will run Google’s Android OS.
OLPC didn’t share further specifics, but the tablet may include a camera and USB ports, according to some design details shared with IDG News Service in July, .
The XO-3 ultimately will replace the XO-1.75 laptops that are currently shipping, Negroponte said.
OLPC is not dependent on a specific manufacturer for the tabletand will work with “whomsoever wants to roll-out the tablet, for whatsoever purpose, at a very large scale,” Negroponte said, adding the objective is to see prices plummet.
As part of a two-year project to study educational development among young children in developing countries, researchers will collect data from XO-3 tablets used by three-to-eight-year-olds in India, Tanzania and Sierra Leone. Software on the tablets will record audio and video and adapt a reading platform to the needs of the children without human intervention. The project will study how children interact with the tablet and will aid in the study of tools for self-learning and critical thinking among children. One goal is to provide basic comprehension and reading, which is important in countries where teacher training is inadequate.
“In the reading experiment, where we ask can a child learn to read on his or her own, we imagine many hours of use per day, as many as six or eight. Frankly, the reading experiment may be the most important thing I have ever done….if it works,” Negroponte said.
The study will be run out of the MIT Media Lab and be conducted in partnership with Tufts University, Newcastle University, and OLPC.
OLPC XO-3 tablet delayed [networkworld, Nov 3, 2010]
OLPC XO-3 Tablet Delayed [IDG News, Nov 3, 2010]
Nicholas Negroponte, chairman of One Laptop Per Child said that the XO-3 tablet computer will debut sometime in February 2011, about 45 days later than originally planned.
Negroponte said that he wants the screen to be flexible so that it is more resistant to breaking, but that it doesn’t need to roll up.
“The issue has been really finding an unbreakable material, which may not be plastic, it may be glass or some flavor of glass,” he said during a video interview at MIT.
At first the XO-3 won’t be branded OLPC, rather made by Marvell, with the actual XO-3 to follow.
The tablet will eventually cost US$75 and during a May 2010 interview, Negroponte said hitting that mark wouldn’t be a problem.
Sitting in his sparse office in the MIT Media Lab, which he founded 25 years ago, Negroponte said that the job of the XO-3 is “pushing where normal market forces wouldn’t otherwise.”
“We’re going to push down on price, we’re going to push on non-breakable, we’re going to push particularly on power because we want to hand crank these things,” he said. “Our characteristics are ones that the market wouldn’t do normally, but that we will bring sooner or prove that can be done.”
Once the XO-3 tablet does debut, it will co-exist “for some time” along with the original laptop.
“It is unclear to us now both in the labs and imagining the future if the haptic version of the tablet keyboard is going to be sufficient to allow you to use it as a general purpose computer,” Negroponte said.
Nick Barber covers general technology news in both text and video for IDG News Service. E-mail him at Nick_Barber@idg.com and follow him on Twitter at @nickjb.
The new, high-volume market in China is ready to define the 2012 smartphone war
Follow-up: Boosting the MediaTek MT6575 success story with the MT6577 announcement [June 27, 2012]
– China TD-SCDMA and W-CDMA 3G subscribers by the end of 2011: China Mobile lost its original growth momentum [Jan 21, 2011]
Updates: China market: Local vendors to roll out CNY300 smartphones [DIGITIMES, July 13, 2012]
China-based handset makers are ready to begin volume shipments of smartphones priced at CNY300 (US$50) in the second half of 2012 compared to the previous focus on CNY600 models in the first half of the year, according to industry sources.
Competition among chipset solution vendors, promotions by telecom carriers, and the rise of new brands in China have contributed to the rapid decline in prices of smartphones in China, the sources revealed.
The top-3 telecom carriers had previously focused purchases on smartphones with a price tag of CNY1,000, but some local handset makers are now willing to offer quotes at around CNY500 in order to win orders, said the sources, adding that the pricing will serve as an indication for channel operators to follow.
While quotes for 2G smartphones in China have already dropped to below US$50, prices for 3G models currently range from US$60-80 and are expected to reach US$50 soon, the sources asserted.
Sub-CNY1,000 smartphones accounted for 21% of all smartphones sold in China in the first quarter of 2012, compared to a ratio of 12% a year earlier, according to IDC.
– China market: Nearly 195 million handsets shipped in 1H12 [DIGITIMES, July 10, 2012]
There were 194.913 million handsets shipped in the China market during the first half of 2012, consisting of 106.874 million (54.83%) 3G handsets in 801 models and 88.039 million (45.17%) 2G handsets in 1,298 models, according to statistics published by the China Academy of Telecommunication Research (CATR) under the Ministry of Industry and Information Technology (MIIT).
Of the shipment volume, 94.855 million or 48.67% were smartphones in 822 models of which 801 models or 97.44% were based on Android. China-based vendors accounted for 75.16% of the half-year shipment volume, and international vendors 24.84%.
The monthly shipment volume of smartphones exceeded that of feature phones for the first time in April 2012, with the corresponding proportion increasing to 56.9% in June.
China market: Breakdown of total handset shipment volume, 1H12 Generation Technology standard
Number of models
Shipment volume (m handsets)
3G WCDMA (China Unicom)
476
53.099
CDMA2000 (China Telecom)
174
28.197
TD-SCDMA (China Mobile)
151
25.578
2G GSM
1,272
81.915
CDMA1x
26
6.076
Source: CATR under MIIT, compiled by Digitimes, July 2012
– Second- and third-tier handset makers in China may not adopt Windows Phone 8 platform [DIGITIMES, July 5, 2012]
Microsoft has been eager to promote Windows Phone 8, Windows 8 and Windows RT. Despite having partners such as Nokia, Samsung, and HTC for Windows Phone 8, severe price competition in China will likely prevent second- and third-tier handset makers from switching from Google’s Android.
China-based handset makers have been aiming at customers switching from feature phones to smartphones for the first time and hence have little desire to adopt new platforms.
Industry sources indicated that competition in China’s smartphone market has been cutthroat. First-tier brands such as ZTE, Huawei, Coolpad and Lenovo have been introducing models at the price range of CNY1,000 (US$157). To increase market exposure, second-tier brands such as Haier and Konka have been introducing models below CNY500 in efforts to obtain cooperation with telecommunications service providers. The price difference is significant, said industry sources.
Microsoft hopes to increase market share in China’s smartphone market. However, Windows Phone 8 is unlikely to compete with Android in features such as localized applications and marketing resources, added industry sources.
Nevertheless, Microsoft has been adding new alliances such as Huawei and ZTE. Industry sources believe the two firms hope to generate more profits by providing products with different platforms.
– China smartphone market 2012: Trends and analysis [DIGITIMES Research, July 3, 2012]
Abstract
The China handset market has exhibited strong growth, with the total number of mobile users in the country reaching 980 million people according to figures from the Ministry of Industry and Information Technology (MIIT), an increase of 130 million over the 2010 figure. Digitimes Research estimates that mobile user numbers could top 1.13 billion in 2012.
Digitimes Research estimates that the China handset market reached some 390 million units in 2011, representing 16% growth on 2010; the market is likely to grow to 430 million units in 2012, representing further growth of 9%. Thanks to the expansion of 3G service coverage and further falls in budget smartphone prices, the share of the handset market accounted for by smartphones is likely to reach 32% or around 143 million units, 70% of which will be Android handsets.
Digitimes Research believes that market share rankings for the China smartphone market will change significantly during 2012. Samsung and Apple will take the top two places, while the big four China-based brands – Huawei, ZTE, Lenovo and Coolpad – will take third to sixth places, while Nokia will drop to seventh; these seven firms will collectively account for 85% of shipments.
In other words, the many other brands hoping to seize a share of the market will essentially be confined to competing for a potential market of just 15% of overall shipments or around 21 million handsets. Given such a situation, Digitimes Research projects that many of China’s best known smaller brands such as Xiaomi, TCL, Gionee, Tianyu, Oppo and BBK will see shipments of no more than a few million handsets.
– China-based white-box vendors expected to ship 200 million smartphones [DIGITIMES, April 17, 2012]
China-based white-box vendors, mainly due to the availability of inexpensive new chip solutions, have been increasing the production of smartphones, with the total shipment volume expected to reach 200 million units in 2012, according to industry sources in Taiwan.
Taiwan-based MediaTek is offering the makers its MT6575 a chip solution for use in entry-level smartphones in the first quarter of 2012 and will offer the MT6577, a solution for high-level smartphones, in the middle of the third quarter of 2012, the sources indicated. MediaTek will ship 50-70 million chips to China-based white-box vendors to account for nearly 30% of smartphones to be shipped by these vendors in 2012.
In addition, Qualcomm has strengthened its marketing in the China market by offering turn-key solutions to white-box vendors, with prices for a chips lowered to US$6, the sources cited eMedia Asia as indicating.
China-based white-box vendors sell more than 60% of their smartphone output to overseas markets, including 2.5G models for markets where deployment of 3G networks is not mature yet, the sources indicated. White-box vendors are expected to see larger market demand if their production costs for entry-, medium- and high-level smartphones drop to US$60, US$85 and US$130 respectively, the sources pointed out.
– China market: Handset makers upgrading hardware specifications of sub-CNY1,000 smartphone models [Feb 17, 2012]
China-based handset makers, including ZTE, Huawei Device, Lenovo and Coolpad, have continued to upgrade the hardware specifications of their sub-CNY1,000 (US$159) smartphone models due to intensifying competition in the segment, according to industry sources.
With the introduction of dual-core 1GHz CPUs for high-end models in 2011, the single-core 1GHz CPU is likely to become one of the standards for entry-level smartphones in China this year, the sources indicated.
Additionally, some vendors have also begun to adopt 4-inch displays for their sub-CNY1,000 models, instead of 3.5-inch displays used previously, the sources added.
Coolpad has recently launched a 4-inch model, the 7260, and saw sales of the model reach 30,000 units a month in the initial period, the sources revealed, adding that monthly shipments of the 7260 may top 100,000 units soon.
– China handset makers to push sales of sub-CNY1,000 smartphones to mature markets [Feb 16, 2012]
Having mass-produced smartphones with a price tag of around CNY1,000 (US$159) for the China market since 2011, China-based handset makers ZTE, Huawei Device, Lenovo and Coolpad plan to push the sale of sub-CNY1,000 smartphones to mature markets including North America and Taiwan, according to industry sources.
Sales of smartphones by Coolpad, Lenovo, ZTE and Huawei combined currently account for 30-40% of China’s smartphone market, with the ratio likely to surpass 50% by year-end 2012, the sources estimated.
In the Taiwan market, Coolpad has recently a WCDMA model with a suggested retail price of NT$5,990 (US$203). However, the company plans to launch more entry-level smartphones later and aims to take up a 3-5% share in the segment. Coolpad shipped about 270,000-280,000 CDMA models in Taiwan in 2011, the sources revealed.
– Chinese smartphone market sees explosive growth [Feb 16, 2012]
Judging from the structure of the smartphone market in 2011, Chinese smart terminals brands such as ZTE and Huawei seem to be on a trend of full-scale explosion. Having been suppressed by foreign brands for a long time, Chinese smartphones begin to take a solid footstep in the smartphone market by working closely with telecommunication operators and making full use of their “Chinese characteristics”, breaking the old pattern of market that has long been dominated by foreign brands. According to industrial participants, Chinese brands are rising in the 3G era.
According to media report, the Coolpad 7260, one of China Unicom’s 1000-Yuan smartphones, created a record sales of 110,000 units three days after it was put on the market, refreshing the shipment volume record of 1000-Yuan Chinese 3G smartphones, scoring a victory in its first battle. Also, this number gives the market more expectation for Unicom’s 8 new models of 4.0 series “WO 3G” 1000-Yuan smartphones that are co-launched by China Unicom and technology-intensive Chinese mobile phone manufacturers.
It is learned that these new 4.0 series 1000-Yuan phones boast three major features: big, fast, and HD. Big screens, previous 3.5-inch screens are replaced by 4-inch screens; fast processing speed, previous 600MHz CPUs are replaced by CPUs that are higher than 800MHz now; fast upload speed, supporting HSUPV; fast running speed, memory upgrades from 256M in the past to 512M now. High-definition picture taking, camera are required to increase from 2-3 million pixels to 3-5 million pixels.
According to person from China Unicom, the re-defined 1000-Yuan smart terminals introduced by China Unicom in May, 2011, and the numerous star terminals subsequently co-produced by China Unicom and Chinese mobile phones manufacturers have won excellent market response. Among these products, ZTE’s V880 scored daily sales of more than 10,000 units and monthly sales of more than 300,000 units. After months of promotion, the 1000-Yuan smartphones strategy remains effective, propelling the fast growth of China Unicom’s 3G subscribers.
In November, Unicom’s net growth of 3G subscribers was as high as 3.384 million with total 3G subscribers amounting to 36.534 million, making it the operator with the fastest 3G subscriber growth rate. This indicates that 1000-Yuan phones have accumulated significant subscriber base in the market and have established some brand effect. Presently, China Unicom makes use of the favorable conditions and defines the standards of 4.0 series 1000-Yuan smartphones, and offers high subsidy for the newly defined 4.0 series phones, with the purpose of making deployment in the middle-end market and grab a say of Chinese smart terminals in advance.
According to industrial participants, “users-friendly price and high-end experience” is the key to the success of China Unicom’s customized 1000-Yuan smartphones. Consumers’ favor for China Unicom’s customized terminals comes from its preferential subsidy policy, rather high-end configuration, and the user experience brought by the WCDMA network. Market research statistics show that the number of 3G subscribers worldwide in 2011 approached 1.3 billion, of which WCDMA subscribers accounted for 76 percent. In China, as per October 2011, WCDMA smartphones accounted for 69 percent of all 3G smartphones. Currently, China has become the largest smartphone market in the world, with nearly 70 percent of the phones being WCMDA. It is thus quite clear that WCDMA mobile phones are the mainstream in China and even all over the world.
Industrial participants point out that with the rapid development of smart terminals in the 3G era, the competition pattern of the mobile phone market will become even more complicated. In the meantime, the industry thinks positively of the marriage between domestic mobile phones and China Unicom’s WCDMA. Amidst the fierce competition of the terminal market globally, however, Chinese smartphones need to understand the market better, and puts more efforts in products R&D and brand image improvement, hoping to evolve from the “copycat” image to a national brand as soon as possible.
End of updates
The new high-volume smartphone market has been established by China Unicom with Lenovo and ZTE involvement from August 2011 on under the so called ‘RMB 1000’ [US$158] inititiative of the carrier.
As visible on the chart (see left) China Unicom was able to return to the previous 10% month/month growth rate of the 3G subscribers as the result of this approach. Unicom’s main rival the much bigger China Mobile was, however, unable to sustain that growth rate. One of the reasons is certainly the fact that China Unicom has so far been the only Chinese operator with official iPhone offerings. By looking to the enlarged picture of the chart for the August-November period one can nevertheless see that the gap in month/month growth rates of the two companies has been steadily growing. This cannot be explained in other ways than by this 1st stage of the ‘RMB 1000’ initiative. Since in the end of December the initiative has been extended to the RMB 1500 [US$238] price cap with not less than 8 models joing the offerings under this umbrella, this will define an obvious smartphone war for 2012.
The first stage of this initiative has already radically redefined the 3G smartphone market for W-CDMA customers in China:
– the ‘RMB 1000’ [US$158] Android phone (Lenovo A60) has slightly better graphics performance than either the 4.26x more pricey iPhone 3G S or the 1.62x more pricey best classic Android phone (Sony Ericsson WT19i)
– the Dhrystone performance of that phone is quite enough comparing to both (2/3d of the iPhone and 4/10th of the Sony Ericsson device)
| Smartphone and its availability (+ recent price) |
Lenovo A60
|
Sony Ericsson WT19i
|
Apple iPhone 3G S
|
| DMIPS | 812.5 | 2100 | 1200 |
GLBenchmark 2.1 Egypt High
|
|||
|
2787 (3174) | 2653 (4806) | 2714 (3352) |
|
2765 (3159) | 2653 (4806) | 2646 (2913) |
|
2757 (3155) | 2653 (4806) | 2646 (3257) |
| Screen size | 480 x 320 | 480 x 320 | 480 x 320 |
| SoC w/ core inside |
MediaTek MT6573 w/ 650MHz ARM11 |
Qualcomm MSM8255 w/ 1GHz Scorpion |
Samsung S5PC100 w/
|
| GPU inside the SoC |
PowerVR SGX 531 |
Adreno 205 |
PowerVR SGX 535 |
Note: For realistic graphics performance the results of the ‘High’ version of the GLBenchmark 2.1 are used here since this is showing how the GPU is performing in high-quality rendering with “multi-sample anti-aliasing and at least 24 bits of color- and Z-buffer depths”. Also the results are shown here for the so called ‘Egypt’ benchmark as it “tests OpenGL ES 2.0 and represents the newest and most demanding benchmark” according to Anandtech. To understand what we are talking about here is also a video demonstration of the 2.1 Egypt benchmark by the globally recognized and accepted creator of it, Kishonti Informatics Ltd:
Since China Unicom launched the second stage of its ‘RMB 1000’ in the end of December, when not less than 8 models with a higher, 1500 [US$238] price cap have been joining the offerings, we can safely argue that what is happening now in China will apply to the global markets as well. We have already shown in an earlier post that China becoming the lead market for mobile Internet in 2012/13 [Dec 1, 2011], so there is no question about that.
Please find below a collection of all related information. It is necessary to highlight here the fact that with the higher, 1500 [US$238] price cap we are already in the 1.0 GHz Cortex-A9 and A5 CPU performance territories which mean 2500 and 1570 DMIPS respectively. The screen is also larger, 4” as well as the resolution is 800×480.
Another thing that needs to be highlighted here is China Unicom’s very attractive contract plan, described below as:
Customers who select the RMB 96 [US$15] per month two-year contract plan can receive the handset for free with a RMB 1,599 prepaid deposit. Users who purchase a smartphone without a contract plan for RMB 1,299 can later select a two-year contract plan starting at RMB 46 [US$7.3] per month and receive free calling credit.
NOW THE DETAILED COLLECTION
China Unicom Releases Eight Low-cost 3G Smartphones [Marbridge Daily, Jan 4, 2012]
During a recent [Dec 26, 2011] event in Beijing, China Unicom (NYSE: CHU; 0762.HK; 600050.SH) unveiled eight new “RMB 1,000” smartphones with 4-inch displays and CPUs clocking up to 1 GHz, as well as announcing its 3G smartphone policy for 2012.
The eight phones, all priced under RMB 1,500 [US$238], including China Wireless Technologies (2369.HK) subsidiary Yulong’s Coolpad 7260, the Hisense (600060.SH) HS-U8, ZTE (0763.HK; 000063.SZ) V889D, Huawei U8818, Lenovo (0992.HK) A750, TCL Communication Technology (2618.HK) W989, Amoi N89, and Philips W635. The Coolpad 7260 and Hisense HS-U8 hit the market in late December 2011.
Unicom expects China’s RMB 1,000 smartphone market to reach 90 mln units sold in 2012, while 60 mln smartphones priced between RMB 1,000 and RMB 2,000 will be sold, including both well-known domestic and international brands. Unicom expects the iPhone to continue to be the carrier’s flagship strategic product in the high-end RMB 2,000 or more smartphone market, and Unicom will continue to strengthen its line-up of operator-customized Android smartphones as well as a range of Windows Phone handsets. Unicom will also push dual-mode, dual-standby, dual-SIM smartphones.
The WCDMA/GSM dual-SIM, dual-standby Coolpad 7260 features a 4-inch WVGA 16 mln color HD multitouch display, Android 2.3, and Coolpad’s secure cloud services. The Hisense HS-U8 WCDMA/GSM dual-SIM, dual-standby smartphone is 1.6 mm thick and features a 5 MP autofocus camera and 3 MP front-facing camera. Both are available with contract plans. Customers who select the RMB 96 [US$15] per month two-year contract plan can receive the handset for free with a RMB 1,599 prepaid deposit. Users who purchase a smartphone without a contract plan for RMB 1,299 can later select a two-year contract plan starting at RMB 46 [US$7.3] per month and receive free calling credit.
China Unicom’s 3G network already covers 341 cities and over 95% of county towns nationwide. HSPA+ peak downlink speeds reach up to 21 MB in 56 key cities. Nearly 20,000 Unicom service centers offer 3G services, as well as nearly 10,000 non-operator stores run by hundreds of major retail chains. Unicom 3G service is also available through mainstream e-commerce channels. According to a source within Unicom, non-operator channels contribute over 50% of China Unicom’s 3G growth.
According to an industry source, China has 900 mln handset users, 90% of whom have a handset priced under RMB 2,000.
Regarding the full contract plan the only available information is from the Chinese press release: China Unicom released eight new definition of thousands of intelligent machines new 4.0 series [translated by Google, Dec 26, 2011]
Attachment: Cool 7260, Hisense HS-U8 contract plans
(A) “Stored send phone calls” contract plan
(B) “purchase mobile phones to send calls” contract plan
China Unicom releases low-end smartphones to woo 3G users [Want China Times, Dec 28, 2011 ]
A China Unicom promotion offers free smartphones paired with 3G service packages.China Unicom, one of China’s three major state-run telecom operators, has teamed up with several local cell phone vendors to launch its latest low-end smartphone in a bid to attract more 3G users.
Along with eight handset vendors — including Hisense, ZTE and Huawei — China Unicom on Monday unveiled its latest low-end smartphone, marketed as the “1,000-yuan (US$158) smartphone 4.0.” The new smartphone is equipped with a 1GHz processor and 4.0-inch screen, an improvement over the 3.5-inch screen of an earlier model.
The launch is widely seen as a move to attract more phone users to 3G smartphones. The number of [W-CDMA i.e. China Unicom’s] 3G users in China has increased to over 36 million, just three years after 3G licenses were made available in 2009.
“(The phone) is a win-win situation for chip makers, cell phone manufacturers and distribution vendors, and the boost in the 3G business is attributable to inexpensive cell phones,” said China Unicom general manager Lu Yimin.
“The launch of the inexpensive 4-inch-screen phone signals that the battleground has shifted from high-end phones to mid- to low-end phones,” said Fu Liang, an independent analyst.
Telecom operators agree that lowering the prices of 3G smartphones will be key in bringing the technology to 2G subscribers, who mainly use mobile phones to make calls, the analyst said. They realize that a price tag of 1,000 yuan will be instrumental in initiating that shift, the analyst said.
The boost to business is most obvious among handsets jointly launched by Chinese electronics makers Lenovo and ZTE. The two companies currently lead the market for phones that use the WCDMA network standard, with Lenovo selling 340,000 of its A60 phones and ZTE selling 240,000 of its V880 handsets per month, according to an analyst. In 2012, the analyst estimated, the number of phones priced under 1,000 yuan will climb to 90 million, while those priced between 1,000 and 2,000 yuan (US$316) will number around 60 million.
China Unicom has seen its 3G subscribers rapidly increase since it partnered with cell phone vendors such as Huawei and Lenovo to roll out inexpensive models in China. According to data from the three major telecom operators in China — China Unicom, China Telecom and China Mobile — 3G subscribers using China Unicom’s network increased to by 3.38 million in November, while China Mobile and China Telecom saw their 3G users rise to by 2.68 million and 2.16 million, respectively.
China Unicom today released an upgraded version of the new definition of thousands of intelligent machines 4.0 [Google translation, Dec 26, 2011]
… The first listing contains the models are Coolpad 7260 [酷派 Yulong], Hisense [海信] HS-U8, ZTE [中兴] V889D, Huawei [华为] U8818, Lenovo [联想] A750, TCL A996, Amoi [厦新] N89 and Philips* W635 …
…
* Sang Fei [桑菲通信]:
Sang Fei is one of China’s biggest mobile communication enterprises with a large export market and a fast-emerging domestic brand presence. A core subsidiary of China Electronics Corporation (CEC) [a highly specialized contract manufacturer in Taiwan] and SED Group [Shenzhen SED Industry Co., Ltd., a state-owned enterprise, which contains 20 solely-funded enterprises and Joint Ventures enterprises, is a publicly listed company on the Shenzhen Stock Exchange [from: the staff is over 5000, the yearly turnover is over 1000 million of U.S Dollar]] …
…
Sang Fei has evolved into a multi-million mobile communications player on the international stage since it was established in 1996 as a joint venture between electronics giant Royal Dutch Philips Electronics Ltd and SED. In 2007, its official buyout of Philip’s global mobile phone businessof Philips, backed by decades of knowledge transfer from the Dutch company, marked the beginning of a new chapter in Sang Fei’s history.
Although it has retained the world-famous Philips brand for its mobile phone products, Sang Fei has stamped its own mark on the business. With an accumulated output exceeding tens of millions, its mobile phones are well recognized by both the industry and customers from home and abroad …
Platform Qualcomm Snapdragon S1 [Google translation, Dec 26, 2011]
… Five models are using Qualcomm Snapdragon S1
- Coolpad 7260
[MSM7227T based with 800 MHz ARM11 processor, 4” display],- Hisense HS-U8
[MSM7227A based with Cortex A5 processor],- ZTE V889D
[MSM7227A based with 1.0 GHz Cortex A5 processor, 4” display],- Huawei U8818 [MSM7227A based with 1.0 GHz Cortex A5 processor, 4” display] and
- Philips [Sang Fei] W635 [MSM7227A based with 1.0 GHz Cortex A5 processor, 4” display]. …
[i.e. Lenovo A750, TCL A996 and Amoi N89 are not:
- Lenovo A750 has MediaTek MT6575 SoC with a 1.0 GHz Cortex-A9 core and HSPA+ support, and 4” display
- Amoi N89 quite probably has MediaTek MT6575 SoC with a 1.0 GHz Cortex-A9 core … as well
- TCL A996, meanwhile has the following specifications:
- Network standard: GSM / WCDMA
- Size: 123 × 65.5 × 12.9mm
- Screen: 4.0 inch IPScapacitive screen resolution of WVGA (480 × 800)
- Battery Capacity: 1500mAh
- Standby time: 300 hours
- Talk time: 4 hours
- Operating System: Android 2.3
- Processor: [Broadcom ARM11-based] BCM 21552
- Memory: RAM 512MB/ROM 512MB, support Micro SD expansion (up to 32GB)
TCL increases smartphone sales 24x to over 1 mln units [Dec 9, 2011]
Chinese handset maker TCL shipped 1.1 million smartphones as part of the 39.15 million units of mobile phones and other products it sold in January-November, 24 times more than the 42,384 smartphones it shipped in the year-earlier period, when total product shipments stood at 39.15 million units. Due to the increasing popularity of handsets that carry social networking functions, the group continued to launch more Facebook phones, strengthening its brand reputation and expanding market share. In November, FrenchTelecom-Orange announced that it would launch the first of three new phones featuring a Facebook key, the Alcatel One Touch 908F. TCL said that the Alcatel phones with Facebook keys are set to be launched across Africa and Europe before the end of the year. TCL, which produced the Vodafone 555 Blue phone as a white-label product, expects its Alcatel One Touch branded phones to raise the product mix towards higher revenue-earning smartphones. TCL is also involved in future mobile technologies, including Terahertz spectrum (0.1-10THz). Still not fully utitilised, the band is being considered in China where TCL has produced a phone supporting THz communications, the Xianguyn A919.
Top TCL Executive Visits Taiwan’s Electronics Makers With Huge Procurement Hint [Dec 7, 2011]
Taipei, Dec. 7, 2011 (CENS)–TCL Corp. Chairman and Chief Executive Officer Li Dongsheng said his company will not limit spending on procurements of Taiwan’s electronics products when recently visiting some Taiwanese electronics heavyweights, including chip vendor MediaTek Inc.
TCL, currently the world’s 25th biggest producer of household appliances, plans to ship 12 million LCD TVs and 50 million mobile phones in 2012. Industry executives estimated the company to budget more than US$1 billion for sourcing Taiwan’s electronics products next year.
Among Taiwan’s contract suppliers on TCL’s outsourcing lists are MediaTek Inc., AU Optronics Corp. (AUO), and Chimei Innolux Corp. Li visited MediaTek’s and AUO’s Taiwan headquarters a few days ago. He said his talk with MediaTek Chairman M.K. Cai mainly focused on cooperation over smartphone development.
However, both AUO and MediaTek executives declined to comment on the meetings.
TCL is now MediaTek’s biggest customer, purchasing up to 30 million mobile phone chipsets from MediaTek in 2010. Li touted that TCL is already among the mainland’s first-tier handset makers, shipping around 45 million systems in 2011. The company shipped 36.2 million mobile phones in 2010.
Taiwan’s industry executives noted that TCL is also one of MediaTek’s major customers of TV chips. TCL has reportedly designed MediaTek MT6573 chip, MediaTek’s first 3.75G 3.5G smartphone chip unveiled early this year, into its mobile phones. MediaTek’s 3D TV chip launched early this year has also entered into TCL TVs.
Handset chips and TV chips have accounted for over 90% of MediaTek’s revenue.
Li pointed out that unlike tepid LCD TV demands in Europe and North America, the mainland’s LCD TV market will grow at least 10% in 2011. He estimated the mainland to turn out a total of 90 million LCD TVs throughout this year, with nearly half of which set aside for the mainland’s domestic market. Although TCL has secured supply of 30 million LCD panels with LCD maker BOE Co., Ltd. of the mainland, the volume is far short of its demand.
Li stressed that his company has entered into cooperation with LCD maker AUO and several Taiwanese LED makers to ensure steady supplies for its TVs.
Backend firms gearing up for new MediaTek solution [Dec 23, 2011]
IC packagers Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL), and substrate makers Unimicron Technology and Kinsus Interconnect Technology are all getting ready for the launch of MediaTek’s MT6575 single-chip solution, according to industry sources.
The upcoming MT6575 will run at 1GHz – an upgrade from 650MHz that the predecessor MT6573 has – targeting growing demand for low-cost smartphones. MediaTek adopts the advanced 40nm process for its MT6575 chip line, and uses wire bonding instead of flip-chip packaging in the products for cost reasons, the sources indicated.
[from: MediaTek MT6575 chips [are] using the new 40-nanometer process, compared with the previous generation chip [the] MT6573 [is] smaller, [the] single-wafer die production is up to 1,200 pieces, [which is] an increase of nearly 50%, [thus] help[ing to] reduce costs.]MediaTek has delivered samples of the new MT6575 solution for design-in to about 40 companies since December, the sources said. It expects to start shipping in volume to customers between January and February 2012, the sources noted. [from: first in December for a small amount of trial production, about 400,000 single month]
Shipments of MediaTek’s MT6575 solution are likely to top 1.5 million units in January, and further expand to three million in February, the sources estimated. The anticipated boost in shipments will buoy sales at its backend suppliers in the first quarter of 2012, the sources said.
ASE remarked at its most recent investors meeting that shipments would decrease 3-4% sequentially in the last quarter of 2011. Looking forward, fewer working days in January might affect the company’s sales performance, said ASE, without elaborating further.
Kinsus has estimated flat sequential growth in fourth-quarter sales. Sales for the first quarter of 2012 would slide as a result of seasonal factors, the company said.
From a MediaTek product document:
MT6573(ap+modem+pmu) + MT6162(rf) + MT662(wifi,gps,bt,fm)
MT6573: ARM11 AP, ARM9 Modem processor,HSPA。
MT6573: 8 Mega pixel camera, OpenGL ES2.0MediaTek MT6573 is a highly integrated 3G system-on-chip (SOC) which incorporates advanced features like HSPA R6 modem, 650MHz ARM11 CPU, 3D graphics(OpenGL|ES 2.0), 8M camera ISP, LPDDR 400MHz, FWVGA(854×480) video decoder. MT6573 can helps phone manufacturers build high performance 3G smart phone with PC-like browser, 3D gaming and cinema class home entertainment experience.
World-Leading Technology:
Based on MediaTek’s world-leading mobile chip SOC architecture and 65nm advanced process, the MT6573 is the grand new generation smart phone SOC. It integrates the MediaTek HSPA R6 modem, 650MHz CPU, 3D graphics, FWVGA video decoder and power management unit.
Rich Feature for High Valued Product:
To enrich camera feature, MT6573 equips a 8M camera ISP with advanced features like auto focus, anti-handshake, continuous video AF, face detection, burst shot, optical zoom, panorama view and 3D photo.
Incredible Browser experience:
The 650MHz CPU brings PC-like browser experience and help accelerate OpenGL|ES 2.0 3D Adobe Flash 10 rendering performance to an unbeatable level.
3G chip market opening price war or acceleration of intelligent mobile phone [Dec 15, 2011]
… With MT6573 scenery, MediaTek then released their latest MT6575, treatment efficacy faster, as high chip MSM7227A. Frequency up to 1GHz, using ARM CortexA9, support for HSPA+. By comparison, MT6573 is inferior many, the chip using ARM11 AP processor frequency is 650 MHz, modem support HSPA speed of 7.2Mbps / 5.76Mbps. …
MediaTek reiterates 4Q11 sales guidance [Dec 29, 2011]
Following a report regarding falling feature phone and smartphone demand in China, MediaTek has said its sales guidance for the current fourth quarter should remain on track. MediaTek expects fourth-quarter sales to fall somewhere between a decrease of 2% to an increase of 5% sequentially.
MediaTek’s consolidated revenues for October and November totaled NT$15.16 billion, already making up 62-66% of the company’s targeted NT$22.9-24.5 billion for the fourth quarter.
Industry sources were quoted in a recent report suggesting a recent slowdown in chip orders from China’s handset market would imply an early arrival of the low season. Many Taiwan-based handset chip suppliers, which rely heavily on the China market, might report 5-10% sequential decreases in December revenues, the sources were quoted as saying.
Qualcomm cuts chip prices for Chinese smartphones [Dec 25, 2011]
Deep price cuts in new dual-core chips produced by American telecom equipment manufacturer Qualcommand used in smartphones produced in China could intensify competition between the company and Taiwan-based integrated circuit designer MediaTek.
The move marks the beginning of a new round of price slashing, Gao Guiming, senior vice president of A’Hong Communication & Digital Information, told the Shanghai-based First Financial Daily.
The US$7 reduction in the price of Qualcomm’s new dual-core chips will pit the company in direct competition with MediaTek in the market for smartphones priced at around 1,000 yuan (US$158). Gao pointed out that MediaTek remains a follower in the smartphone market and that Qualcomm’s price cut will force the Taiwanese firm to follow suit in order to expand its market share in China.
Smartphone shipments in China reached 24 million units in the third quarter of 2011, surging 58% from the second quarter and leading the country to pass the US as the world’s biggest market for the devices, according to data compiled by research and consulting firm Strategy Analytics. Total sales volume in China is projected to expand to 153 million phones in 2012.
Qualcomm’s latest price cut signals its plan to supply smartphone manufacturers with “public boards” designed for common use by various producers to quickly develop low-cost handsets.
Qian Zhijun, product director at Qualcomm China, revealed at a summit on smartphones held in Shenzhen last month that his company’s new research and development center in Shanghai will help producers shorten the time needed to roll out new products. Qualcomm aims to use its QRD development platform to help producers put new models on the market within 30-60 days, compared with the more than six months required today.
Sources at MediaTek say there is still no news about the company’s possible plans to cut prices in response. MediaTek president Hsieh Ching-chiang stressed in November that providing customers with low-cost customized chips has long been the company’s forte and that the smartphone sector will see little change.
Hsieh implied that MediaTek still has an advantage over Qualcomm in terms of offering more comprehensive services to clients. He revealed that MediaTek has shifted most of its resources to the smartphone sector. Hsieh expects the company’s shipments of dual-core chips for intelligent handsets to double to 20 million sets in 2012.
Liu Wenquan, an industry analyst based in Shenzhen, says an intense price war is unlikely in the near future as aggressive promotion by Chinese telecom service carriers has brought about skyrocketing demand for low-cost smartphones. MediaTek’s MT6573 chips are still in short supply, he said.
Analysts said Qualcomm’s major targets in China are larger smartphone producers, not mobile phone copycats. Senior vice president Jeff Lorbeck stated that the QRD development platform will be open mainly to companies that have already won Qualcomm technology certification and authorization.
Further, Qualcomm’s price still hovers about US$10 higher than similar products from MediaTek, which maintains the advantage of higher flexibility as well as closer and smoother communication with Chinese smartphone manufacturers.
Gu Wenjun, an analyst at market research firm iSuppli, said the Chinese market is too big and diverse for any single chip supplier to maintain a dominant role. The best policy for Qualcomm and MediaTek is to take better care of their largest clients, he suggested. Smartphone manufacturers are expected to continue the policy of choosing two or even three core chip suppliers in order to produce a variety of smartphones to satisfy consumers’ tastes, added Gu.
ZTE Skate [V960] Review CNET [cnetuk, Nov 23, 2011]
In this video review, Amie Parker-Williams does a double take when she gets her mitts on the ZTE Skate, the identical twin of the Orange Monte Carlo. While the two phones may have been cast in the same mold in terms of design, the Skate thankfully comes without the Orange bloatware, and is better off for it. Hit play to take a closer look at this glossy Android blower.
China Unicom Hopes To Sell Cheaper Phones Next Year [Dec 20, 2011]
Chinese telecom operator China Unicom announced its strategic focus for 2012 and said it will focus on the sales of phones with the prices between CNY1,000 and CNY2,000.
On December 12, 2011, China Unicom and ZTE, the Chinese telecom equipment maker, jointly launched a customized phone named Skate V960, which is recognized as a strategic productby Yu Yingtao, general manager for the sales department of China Unicom.
Yu previously revealed during an interview that many manufacturers were developing phones with the prices between CNY1,000 and CNY2,000 and China Unicom will bring surprises to users in 2012. The company plans to introduce more cost-effective products then.
Following the launch of Skate V960, other Chinese and International makers such as Huawei, Motorola, HTC, and Samsung will provide more options in this price range, said Yu. Products of this price range hold a 20% share of the market in China, which means a user group of about 50 million people. Therefore, China Unicom will cooperate with first-class makers in China and the world to meet the demands of these consumers.
However, Yu pointed out that it does not mean the company will focus less on smartphones with prices lower than CNY1,000, because these products own 63% share of the market and more international brands expressed their intention to launch CNY1,000 smartphones. According to Yu, for the year 2011, China Unicom’s sales of CNY1,000 smartphones made by ZTE, Huawei, Lenovo, Coolpad, and Amoi is expected to be over 10 million units.
ZTE SKATE [V960], Smart Choice, Bright Life [ZTEGlobal, Sept 22, 2011]
ZTE Smartphone Sales Top 12M Units [Dec 13, 2011]
ZTE Corporation (000063, 0763.HK) has met its 2011 annual sales target of 12 million smartphones, reports 163.com, citing company vice president He Shiyou. The companysold three million smartphones last year.
He said ZTE is currently planning its 2012 sales target, and that there will be more than a doublingof the smartphone sales target.
ZTE and China Unicom (600050, 0762.HK) jointly launched the Skate V960 smartphone priced at 1,499 yuanon December 12.
The Skate V960 mobile phone was first rolled out in overseas markets, including Brazil, Spain, Hong Kong, Germany and the U.S., before its launch in the domestic market.
He said ZTE will continue to cooperate with operators in terminal sales, and will develop other sales channels as well.
ZTE Skate – Light your smart world [ZTEGlobal, Oct 13, 2011]
ZTE V960 [= Skate] product page[translated by Google, Sept 23, 2011]
- Frequency range GSM: 900/1800/1900 UMTS: 900/2100 HSDPA: 7.2Mbps DL
- Chipset Qualcomm MSM7227-T [800 MHz]
- Size 126.5 * 68 * 11.2mm
- Weight 140g (with battery)
- Antenna comes with built-in antenna modeling straight memory
- Memory: 200 MB of available space is greater than the available expansion card memory MicroSD memory card expansion (up to 32 GB)
- The main screen 800 * 480 pixels, 262K TFT color screen, 4.3-inch external screen without camera
- 5M pixel camera take a picture: up to 2560 * 1920,
- Shooting video: up to 640 * 480
- Digital zoom: 1.6 times
- Battery Standard battery: Li-ion 1400 mAh
- Side keys (volume keys) with the keyboard menu, home, back
- Touch-screen full-touch capacitive touch-screen interface,
- Bluetooth extension, MicroSD card, USB 2.0 Full Speed
- SIM card insertion, 3V, 1.8V
- Stereo headphones with a microphone headset hands-free speaker with charger 5pin Micro-USB
- Sensor support gravity sensor, light sensor, proximity sensor
China-based branded smartphone vendors to produce sub-US$100 models [Nov 3, 2011]
China-based branded handset vendors including Lenovo, ZTE and Huawei Technologies are expected to venture into the production of smartphone models with a price tag of around US$100 in 2012 – a move which will add pressure on white-box vendorsin China as well as on upstream parts and components suppliers, according to industry sources.
The China-based makers are responding to growing competition from foreign branded smartphones vendors including HTC, Apple and Samsung Electronics, which have recently expanded their product lineups for the entry-level and mid-range markets, the sources noted.
Although HTC has refuted market rumors that it plans to launch smartphones for the US$100 segment, the sources said HTC has been trying to reduce its production costs by introducing models with comparable hardware specifications but running on different operating systems.
Taking the HTC Titan and HTC Sensational XL for example, the hardware specifications of the two models are comparable, but the HTC Titan runs on Windows Phone platform, while the HTC Sensational XL is powered by Android 2.3.4.
Apple’s launch of 8GB iPhone 4 and iPhone 3GS is also a vivid indication of the vendor’s ambition to expand its share in the entry-level and mid-range smartphone segments, the sources commented.
Qualcomm competing with MediaTek in China market with price competition [Dec 6, 2011]
In view of increasing adoption of the MT6575, a 1GHz chip solution developed by Taiwan-based MediaTek for use in 3G handsets and smartphones, by several China-based vendors and white-box clients, Qualcomm has lowered its quotes by keeping them close to MediaTek in order to strengthen its price competitiveness, according to China-based white-box vendors.
Following selling the 650MHz chip MT6573 in the China market during early October peak sales period, MediaTek has begun offering the MT6575featuring mainstream a computing speed of 1GHz and four functions, GPS, FM, Bluetooth and Wi-Fi, in one chip. The specifications plus price and rich content available on MediaTek’s handset development platform have made M6575 strongly competitive in the China market, the sources indicated.
Qualcomm has had its MSM7727 and MSM7727Acompete with MediaTek’s MT6573 and MT6575 respectively, the sources noted.
Based on a general price level of about US$10 for a 3G handset chip, the MT6575 is competitive enough in price, the sources indicated. To be competitive, Qualcomm has to decrease prices because its quotes for 3G handset chip solutions are mostly higher than MediaTek by more than 20%, the sources pointed out.
The competition for 3G handset chip solutions between Qualcomm and MediaTek will extend from China to emerging markets in 2012, the sources indicated.
The new frontier in mobile computing: Q&A with Qualcomm EVP Steve Mollenkopf [May 31, 2011]
…
Q: Convergence has been talked about for years, why is now such a critical time in the evolution of the market?
A: If you look at the current market situation, there are there are three areas that have driven the industry to reach critical mass.
First of all, advancements in semiconductor designhave substantially increased the amount of computing power that you be put into the small thermal envelope needed to efficiently power a mobile phone or portable device. What this means is that you can now put the same processing power in a smartphone or another type of handheld device that used to be in a notebook, and that is really opening up the market to new designs and usage models.
The second thing that is shaping the current market is that the shift to next-generation mobile networkshas meant that a lot of data can be quickly delivered to – and enjoyed by – mobile devices, with multimedia and Internet content driving demand. High-speed 3G and 4G networks really enable an enormous amount of connectivity to occur with mobile devices.
The third area where the market is really evolving is that the dynamics of the software markethave changed a great deal. Most developers used to focus on the PC ecosystem, and a major priority driving software vendors in the past was making sure that they maintained backward compatibility for their applications. If you look at the market now, most people are developing for smartphone platforms and those platforms are migrating up. This has broken the link of being encumbered by legacy applications. This phenomena is only going to accelerate even more as we move into cloud computing and most user data and applications end up being positioned somewhere in the cloud.
So what this means is that currently there is a kind of perfect stormin the mobile environment that is bringing the best of all worlds together. It is really going to change the way mobile devices are used and it is also going to change the technology in them.
Q: While users are expecting more from their mobile devices, system providers have to deal with more complexity, making it harder to quickly deliver products to market. Can you explain how Qualcomm can help enable its partners in this area?
A: It’s true. What you see, particularly as you start moving into mobile computing is that the devices are very complex. For market players, this means that your solution needs to excel along many different vectors. It has to have a high-performing processor. It has to have a high-performing graphics engine. It has to have a high-performing modem. It has to be a high performing connectivity solution.
Moreover, all of those areas need to be blended together in an optimal manner. It doesn’t make sense for a device to simply be a collection of assets. All the areas need to work properly together for that system to be a success. What that means for semiconductor solution providers is that you need to have all of these assets in house in order to best enable your customers.
Really, when the complexity of the solution becomes quite high, it is going to be very difficult for many players to deliver that system solution efficiently and at the speed that is required in order to be competitive in the market. A lot of solution providers may excel in one area or another, but not really in all areas. This makes things more difficult for downstream system providers. What Qualcomm has endeavored to achieve is to try to excel across multiple vectors. We have been lucky in that we have had the scale to invest, to allow us to be successful.
Q: Can you tell us a bit about your hardware features, especially Snapdragon?
A: Referring back to Qualcomm being able to succeed across multiple vectors, the Snapdragon is a perfect example. One misconception many users have about Snapdragon is that it is a processor but Snapdragon is an integrated system. It doesn’t refer solely to the processor or to the graphics engine. It doesn’t refer to the connectivity assetsor the modem individually. It refers to all of them together in an integrated solution.
Looking back at the first Snapdragon we did, which was really the first 1GhHz processor in a mobile phone; that was when we really began enabling the market with a much differentiated product relative to what the market had seen before. We are now on our fourth generation productand we will continue investing heavily in the platform as we move forward.
In terms of processing on the ARM-based Snapdragon platform, we currently have a mix of the highest performance and lowest power mix in the industry with our 28nm versions of the device. On the network side, Qualcomm has always been known as a leading modem company and we integrate the modem into the processor. Together with the GPU, the SoC (system on chip) family of solutions delivers one of the most integrated solutions today. In addition to providing us with a leadership position, this is pretty important because it allows our partners to develop unique designs. For example, the first LTE smartphone from Verizon is built around our Snapdragon platform.
And it is not just about hardware. A solution provider needs to be able to deliver software support as well. For example, currently we deliver Android over multiple chipsets at the same time. This is important because there are many tiers of devices, from high-end tablets down to entry level smartphones. With Qualcomm being able to deliver solutions that cover all market segments, we enable our partners to be competitive with a full range of products as well.
We started talking about complexity and finished with integration, but integration is really just the ability to pull together many different types of technologies into one easily deliverable package, whether it is one physical package or one system solution tied together by one set of software. As the market progresses and becomes more complex, fewer companies can deliver on this. That is why Qualcomm is leading the way.
Q: How does this level of integration help you enable your partners?
A:Combining all the levels of integration in our family of solutions allows for more creativity for system houses. OEMs can spend their resources and investment in areas that help differentiate their products. It is a much more efficient way to deliver technology.
In addition, our highly integrated solution actually expands the market by enabling more partners to participate in system design. By providing so much to our partners, we don’t limit our customer base to companies with very large engineering teams only. Many more companies are able to go to market with our products.
…
Taiwan foundries cut prices 10-15% [Dec 30, 2011]
Taiwan-based foundry service providers have cut their prices for wafers built on mature node processes to reflect lower production costs, according to sources at IC design firm. The move is also aimed to encourage customers to build inventory, the sources said.
Some fabless IC firms tend to accept their foundry partners’ low-price offerings in consideration of their long-term relationships, the sources indicated.
Chip inventories throughout the supply chain have actually been lowered to safe levels, the sources said. However, companies hold a wait-and-see attitude rather than restocking because of an uncertain business outlook, the sources pointed out.
Inventories climbed to excessive levels between the end of the second quarter and the beginning of the third quarter, due to a combination of negative macroeconomic factors such as weak consumer confidence in the US and the European crisis.
In other news, despite slow demand for mature process manufacturing, Taiwan Semiconductor Manufacturing Company (TSMC) continues to see orders heat up for advanced 28nm technology, according to sources at non Taiwan-based chip suppliers.
Foundry orders losing momentum [Nov 22, 2011]
Foundry chipmakers have seen short lead-time orders lose momentum, according to industry sources. Short lead-time orders were a key factor contributing to their revenue growth in October and better-than-expected results in the third quarter.
A surge of short lead-time orders was previously expected to emerge around this time amid low inventories in the semiconductor supply chain, the sources pointed out.
But fabless IC clients are now unable to meet order estimates placed earlier with the foundries, and have requested delivery to be delayed until after the first quarter of 2012, the sources indicated.
Major foundry players including Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) might post double-digit sequential dips in revenues for the first quarter of 2012, due to a slowdown in orders, the sources said. Gross margin and operating margin for the quarter will also come under downward pressure along with their utilitzation rate declines, the sources added.
But starting from the middle of the second quarter, foundries are expected to see orders pick upwith clearer order visibility, the sources believe.
TSMC at its most-recent investors meeting estimated consolidated sales for the fourth quarter of 2011 would slip 1-3% sequentially. The firm reported higher-than-expected results for the third quarter driven short lead-time orders.
UMC has guided wafer shipments for the fourth quarter would decrease about 10% sequentially with ASPs up 5%. It did not provide a revenue guidance.
Both TSMC and UMC have not disclosed their revenue forecast for the first quarter of 2012.
China market: Handset demand weak [Dec 26, 2011]![]()
Demand for feature phones in China has turned weaker than expected since the middle of October, according to sources at Taiwan’s LCD driver IC design houses. Smartphone demand in China is also slowing down recently, bringing further adverse impact to some firms’ sales performance, the sources indicated.
The slowdown in orders reflects an early arrival of the low season, the sources observed.
Many of Taiwan’s handset chip suppliers which rely heavily on the China market are likely to report 5-10% sequential decreases in December revenues, the sources estimated, citing falling demand from the region. Sales might further decline 10% or more sequentially in the first quarter of 2012, as a result of fewer working days during the long Chinese New Year holiday and seasonality, the sources noted.
However, most of Taiwan’s handset chip designers will see their sales recover starting the second quarter of 2012 when China-based handset firms’ inventories will be low, the sources said.
MediaTek likely to post higher revenues in December [Dec 21, 2011]
Brisk orders from China-based smartphone vendors who are preparing for Lunar New Year sales campaignsare buoying MediaTek’s sales in December, according to industry sources. The IC design firm is expected to post sequential growth in consolidated revenues for the month, the sources said.
The sources estimated MediaTek’s December consolidated revenues at between NT$7.7 billion (US$255 million) and NT$9.2 billion [US$305 million].
MediaTek previously guided consolidated sales for the fourth quarter would be NT$22.9-24.5 billion, compared to NT$23.38 billion in the third quarter.
MediaTek accumulated NT$79.36 billion [US$2,628 million] in consolidated sales from January through November, a 24.8% decline from 2010.
MediaTek posts lower-than-expected sales in November [Dec 8, 2011]
MediaTek has reported consolidated revenues grew 1.2% sequentially to NT$7.63 billion (US$252.9 million) in November. The figure came below market watcher estimates of NT$8.5-9.5 billion.
MediaTek’s November sales were affected by its China-based white-box clients’ lower-than-expected smartphone shipments, according to industry sources. Shipments were disrupted by tight supplies of ambient light sensorsfrom Texas Advanced Optoelectronic Solutions (TAOS), the sources revealed.
TAOS’ back-end operations in Thailandhave been suspended causing disruptions to its ambient light sensor shipments to customers, which also include brand-name consumer electronics vendors such as Apple, HTC and Nokia, the sources indicated. With its ambient light sensor availability becoming tight, TAOS is giving priority to orders placed by the first-tier brands, at the expense of those from second-tier and China’s white-box companies, the sources said.
TAOS is unlikely to provide adequate supplies of its ambient light sensors by the end of 2011, which would continue to disrupt certain CE manufacturers’ deliveries, the sources noted.
Previous reports quoted industry sources saying MediaTek had enjoyed brisk demand for its solutions targeting low-cost smartphones, and an influx of short lead-time orders from clients in China after the country’s National Day holidays.
MediaTek sales to top NT$9 billion in November [Dec 5, 2011]
Buoyed by an influx of short lead-time orders from handset clients in China, MediaTek will report better-than-expected sales results for November 2011, industry sources have said.
MediaTek’s consolidated revenues are likely to top NT$9 billion (US$298 million) in November, hitting the highest monthly level for 2011, according to the sources. The company saw its sales decrease about 5% sequentially to NT$7.53 billion in October.
MediaTek reportedly has enjoyed brisk demand for its MT6573 smartphone solution – targeting low-cost smartphones. In particular, demand received a boost driven by orders from China during the country’s National Day holidays in Octonber, the sources observed. Next-generation MT6575 is scheduled to start shipping prior to Lunar New Year, the sources indicated.
The upcoming MT6575 single-chip solution will run at 1GHz, an upgrade from 650MHz that its predecessor has, the sources revealed. In addition to white-box handset makers, a number of brand-name firms targeting the China marketreportedly will adopt the solution from MediaTek, the sources indicated.
MediaTek previously reiterated that its sales estimate of NT$22.9-24.5 billion for the fourth quarter remains unchanged. The company posted consolidated revenues of NT$23.38 billion in the third quarter, up 11.4% sequentially but down 17.1% on year.
Motorola increasing orders to Taiwan production partners, say sources [Dec 6, 2011]
Motorola Mobility has been strengthening its ties with Taiwan-based handset ODMs and parts and components suppliers with procurements from those production partners to increase 10% sequentially in the second half of 2011 and to further expand by 10-15% in 2012, according to sources in the supply chain.
Motorola’s increased orders to Taiwan production partners reflect a steady integration process between Google and Motorola as well as the vendor’s stepped-up efforts to launch new models, including the Razr XT910 flagship model [(Dec) TI OMAP 4430 based, with dual Cortex-A9 @1GHz], the high-end Milestone 3, [ME883 (July), XT860 (Sept) and ME863 (Sept) – all OMAP 4430 based, with dual Cortex-A9 @1GHz], the DEFY+ [MB526 (Sept) OMAP 3620 based, with Cortex-A8 @ 720 MHz] social networking phone and the entry-level XT319 [XT319 (Oct) with Qualcomm MSM7227T @ 800 MHz], in the fourth quarter of 2011, revealed the sources.
Motorola’s ODM handset orders to Taiwan production partners are expected to total 11-13 million units in 2011, of which over 90% are feature phones, estimated the sources, noting that Taiwan ODMs may receive more orders for smartphones from the vendor in 2012.
Motorola’s ODM partners include Arima Communications, Compal Communications and Foxconn International Holdings (FIH), while parts and components suppliers include Merry Electronics and Chi Cheng Enterprise.
Merry has reported consolidated revenues of NT$880 million (US$29.1 million) for November, increasing 25.47% on month and 9.67% on year and representing the highest monthly figures in 47 months, according to a company filing with the Taiwan Stock Exchange (TSE).
MediaTek, Spreadtrum, MStar sharing China market of handset chips [Dec 13, 2011]
Taiwan-based IC design house MediaTek and MStar Semiconductor and China-based fellow company Spreadtrum Communications are sharing the market demand for handset chips, according to China-based white-box vendors of handsets.
MediaTek, following victorious sales of its 3G chip MT6573 during the peak sales period in early October 2011, has launched 1GHz 3G chip MT6575 and received good market response, the sources pointed out. MediaTek’s shipments of MT6575 are expected to peak prior to the 2012 Lunar New Year in late January, the sources indicated.
Spreadtrum has dominated the market segment of TD-SCDMA, China-developed 3G standard, chips, with shipments of TD-SCDMA chip SC8800G on the rise, the sources noted.
While MediaTek and Spreadtrum have shifted focus to 3G chip solutions, MStar has focused on marketing of 2.5/2.75G chips with many new products, the sources indicated. MStar’s monthly shipments of 2.5/2.75G chips have climbed to 5.0 million units, more than triple the level in the first half of 2011, the sources pointed out.
Currently, MediaTek has a market share of 60% for 2.5/2.75G chips, while Spreadtrum and MStar have those of 25% and 10% respectively, the sources noted.
MStar reports on-year revenue growth for November [Dec 9, 2011]
MStar Semiconductor has announced consolidated revenues of NT$3.25 billion (US$107.7 million) for November, down 4.4% on month but up 6.5% on year, according to a company filing the Taiwan Stock Exchange.
For the first 11 months of 2011, revenues amounted to NT$32.52 billion [US$1,077.7 million], increasing 3.5% from a year earlier.
MStar taping out 3.75G [?3.5G?] handset solutions in 4Q11 [Nov 9, 2011]
Taiwan-based IC design house MStar Semiconductor will begin to tape out 3.75G [?3.5G?] handset solutions supporting TD-SCDMA and CDMA technologies soon with end market devices to hit the market in the first quarter of 2012, according to company chairman Wayne Liang.
Shipments of handset solutions will increase 30-50% sequentially in the fourth quarter, pushing handset solution revenues to 15% of the company’s total revenues in the quarter compared to 10% in the third quarter, Liang predicted.
Fourth-quarter revenues are expected to top US$311-329 million, up or down in a range of 3% from the previous quarter, Liang said at an investors conference. Gross margin will range 40-42% in the fourth quarter compared to 42.1% in the last quarter.
Shipments of TV chips will drop slightly in the fourth quarter, and demand for TV chips is expected to continue growing in emerging markets in 2012, but the prospects in the US and Europe are still unclear, said Liang.
MStar posted net profits of NT$1.62 billion (US$53.8 million) in the third quarter, up 7.2% sequentially. Third-quarter earnings translated into an EPS of NT$3.06 compared to NT$3.73 posted by rival MediaTek, according to data from the companies.
China market: 2.5G handset chipset prices falling [Nov 24, 2011]
Prices for 2.5G handset chipsets have slipped more than 10% in the fourth quarter of 2011, and will continue to fall at the same rate in first-quarter 2012 due to continued oversupply in the market, according to sources at white-box handset makersin China.
With branded and white-box handset vendors shifting their focus to smartphones, demand for 2.5G feature phones in China is decelerating, the sources said. Taking sales during China’s National Day holidays last month as an example, supplies were tight for many top-selling smartphones while 2.5G devices were unremarkable, the sources indicated.
As end-market demand began to fall, chipmakers including MediaTek, MStar Semiconductor and Spreadtrum Communications decided to lower their prices for 2.5G solutionsto stimulate demand and protect their market shares, the sources pointed out.
Another cause of the intensified price competition is high similarity of products. MediaTek’s 40nm-made 2.5G chipset that comes with a high level of integration enabled the company to stand out from the crowd in the first half of 2011, when competition with rivals was less fierce, the sources said. However, with MStar and Spreadtrum both launching 40nm, highly-integrated solutions, competition has intensified leading prices to fall in the second half of the year, the sources noted.
In addition, MediaTek, MStar and Spreadtrum have stepped up R&D efforts for the development of 3G WCDMA and TD-SCDMA chipset solutions, according to the sources.
Motorola to adopt MediaTek solutions for WCDMA smartphones, says paper [Oct 14, 2011]
Motorola Mobility will adopt MediaTek’s MT6573 solutions for its WCDMA-enabled smartphones, the Chinese-language Commercial Timescited Daiwa Securities analyst Chen Hui-ming as indicating.
Motorola’s order volume to MediaTek is still unclear as it will depend on market demand during the upcoming Lunar New Year holidays as well as Motorola’s cooperation with China-based telecom carriers, Chen was quoted as saying.
In addition, China-based Huawei Technologies is also likely to adopt smartphone solutions from MediaTek in early 2012, said Chen, but added that Huawei is going to buy MediaTek’s new 3.75G solution, the MT6575, instead of the MT6573. Huawei previously purchased most of its handset solutions from Qualcomm.
MediaTek Pursuing Japan’s 4G Biz [Nov 30, 2011]
… MediaTek President C.J Hsieh touted that MediaTek chipsets are not inferior to Qualcomm’s. MediaTek MT6573, for instance, supports EDGE and WCDMA specifications with its Bluetooth, LAN, GPS and FM wireless designs.
The company plans to ship 20 million smartphone chipsets in 2012, 10 million more than its goal for 2011. Totally, the company will deliver 550 million chipsets for various types of handsets this year. The shipment increase comes against the backdrop of the forecast that global market penetration of smartphones will increase to 50% from 2011’s projected 30%.
Hsieh believed that his company’s smartphone chipsets will be quickly flowing into global markets along with its mainland Chinese customers striving to ship mobile phones to Europe and North America.
Orders for MediaTek 3.75G 3.5G smartphone chip soaring [Oct 13, 2011]
China’s brand-name handset vendors, including Lenovo, ZTE and TCL, have ordered more MT6573 3.75G 3.5G smartphone chips from MediaTek, according to industry sources. To meet the continued rising demand, the fabless IC firm has asked for additional foundry capacity equivalent to 6,000-8,000 12-inch wafers from United Microelectronics Corporation(UMC), the sources indicated.
Backend service providers including Advanced Semiconductor Engineering (ASE), Siliconware Precision Industries (SPIL), King Yuan Electronics (KYEC) and Sigurd Microelectronics are also pinpointed by the sources as beneficiaries of the increased orders.
MediaTek released additional orders to UMC as well as Taiwan Semiconductor Manufacturing Company (TSMC) for foundry services in August – equivalent to a combined 25,000 12-inch wafers – to satisfy brisk demand for its MT6573 solution, which is gaining acceptance from the company’s principal customers in China, the sources revealed.
MediaTek is expected to see monthly shipments of its MT6573 chipset solutions to reach 1-1.5 million units in October and November, and continue expanding to 3.5-4 million in December, the sources estimated. The growing shipments will boost the company’s sales in the fourth quarter of 2011, the sources said.
In addition, acknowledging the MT6573’s popularity, Huawei Technologies reportedly is asking MediaTek to accelerate development of the chip’s successor, the sources said. Dubbed the MT6575, the next-generation single-chip solution could start shipping as early as the first quarter of 2012, the sources indicated.
MediaTek shares closed up 2% at NT$336 (US$11.10) on the Taiwan Stock Exchange on October 13. The price scored the highest in eight trading days.
In other news, ASE, SPIL, KYEC and Sigurd are likely to see their revenues for the fourth quarter of 2011 stay flat sequentially, the best-case scenario amid a global economic downturn, according to the sources. Orders from MediaTek as well as the depreciation of the NT dollar are seen as the major contributing factors.
MediaTek asks for additional capacity from UMC due to increased orders for MT6573 chip [Aug 24, 2011]
Due higher than expected orders for its MT6573 3.75G smartphone chip, MediaTek has asked for additional foundry capacity equivalent to several thousands of wafers from United Microelectronics Corporation (UMC), according to industry sources.
MT6573 has been adopted by Lenovo and other China-based vendors because its FOB price of US$60-70is much lower than US$100-120 quoted by MediaTek’s competitors and functional performance is better, the sources said. Based on orders received, MediaTek will ship more than one million MT6573 chips in September 2011, with monthly shipments to increase to 2-3 million chips in November and December, the sources indicated.
Due to the additional orders for foundry services, UMC has offered a 10% discount for all orders from MediaTek, the sources indicated. Similarly, MediaTek has asked Advanced Semiconductor Engineering and Siliconware Precision Industries to offer a 10% discount on IC packaging and testing services for the fourth quarter in exchange for additional orders, the sources said.
MediaTek profits improve sequentially in 3Q11 [Oct 28, 2011]
MediaTek has announced net income of NT$4.07 billion (US$135.38 million) for the third quarter of 2011, an increase of 22.4% from the prior quarter, but down 41.6% from the year-ago quarter. Third-quarter EPS were NT$3.73, compared with NT$3.05 in the previous quarter and NT$6.39 of a year earlier.
Consolidated revenues amounted to NT$23.376 billion [US$777.6 million] in the third quarter, up 11.4% sequentially but down 17.1% from a year earlier. The on-quarter revenue growth was mainly driven by seasonality and the increase of handset sales volume.
Third-quarter gross margin was 45.1%, or 0.8pps and 7.1pps lower than the previous quarter and the same period of last year, respectively, due mainly to decreased handset chipset prices.
MediaTek 3.5G-chip shipments likely to hit 1 million mark in September [Sept 30, 2011]
Shipments of MediaTek’s MT6573 3.5G chipset solution approached one million units in August, and are likely to exceed the mark in September, according to industry sources. Shipments have been fueled by roll-outs of new 3G handsets in China.
Monthly shipments of MediaTek’s MT6573 chips are expected to reach 1.5 million units in the fourth quarter, and climb further to two million in 2012, the sources said.
However, MediaTek has internally estimated that its sales for September will decrease slightly from August levels, the sources indicated. The company also maintained its revenue guidance for the third quarter at NT$22-23 billion (US$721.5 million-754.3 million), the sources revealed.
The sources previously predicted that MediaTek’s September sales would post another on-month growth following the 16.3% sequential rise in August. But a number of clients in China had actually made advance orders, which constrained the company’s sales growth in September.
MediaTek’s sales for the fourth quarter are set to decline about 10% sequentially, due to generally low order visibility, the sources said. The company has not given its outlook for the quarter.
Lenovo places short lead-time 3G chipset solution orders with MediaTek, says paper [Sept 27, 2011]
Lenovo has placed short lead-time orders for MT6573 3G solutions with MediaTek recently as the first batch of 500,000 units of its A60 smartphone, priced at CNY1,000 (US$156), have nearly sold out since the device launched in August, according to a Chinese-language Commercial Timesreport.
Due to strong sales of the A60, other vendors in China, including ZTE, Huawei Technologies, and Beijing Tianyu Communication Equipment, plan to launch low-priced smartphones soon, with chipset solutions also coming from MediaTek, the paper said.
MediaTek’s shipments of MT6573 chips are expected to top 1.2-1.3 million units a month prior to the arrival of the Lunar New Year holiday, which begins on January 22, 2012, added the paper.
Short lead-time orders buoying TSMC sales [Sept 14, 2011]
Taiwan Semiconductor Manufacturing Company ((TSMC) has disclosed that its consolidated revenues for the third quarter of 2011 are expected to exceed its guidance given in July, thanks to some “rush” orders from customers.
Industry sources speculate that the short lead-time orders were placed by the foundry’s fabless clients including Qualcomm, Broadcom, MediaTek and MStarSemiconductor, which enjoyed rising demand for their smartphone solutions targeting China and other emerging markets.
However, demand for smartphones coming from the Europe, Japan and US markets remain sluggish, the sources indicated. The major chip providers actually are bracing for unusual weak demand during the Christmas and year-end shopping season, the sources added.
TSMC’s sales and utilization rate for the fourth quarter may come under downward pressure, as order visibility remains opaque, the sources said.
TSMC reported NT$37.64 billion (US$1.29 billion) in consolidated revenues for August 2011, up 6.2% sequentially. Consolidated sales for July and August totaled NT$73.08 billion, already making up 69-72% of the company’s targeted NT$102-104 billion for the third quarter.
LENOVO LePhone A60 [Sept 9, 2011]
Price: USD169.00
Specifications
- Features
Android 2.3 / Capacitive / Dual-SIM Dual-stanby- Network
GSM + GSM or GSM + WCDMA, WCDMA:900/2100, GPRS/EDGE:900/1800/1900- Processor
MTK MT6573 650MHz / GPU PowerVR SGX 531- RAM
256MB RAM- Flash Memory
512MB ROM- Expansion Memory
Extend Memory up to 32GB micro sd card- Operating System
Androind 2.3- Languages
Multi-language: English, Chinese- Screen
3.5 inch 320x480pixels, Capacitive Multi-Touch screen- Video
rm,.rmvb,rv,.wmv,.mp4,.3gp,.asf, .m4v,.avi,.mov,.mpg.mpeg,.flv,.f4v,.asf,.mkv- Audio
RA, AAC, AAC+, MP3, WMA, WAV, OGG, MIDI, AMR NB,AU,AIFF, M4A, F4A- Peripherals Support
3.5mm Stereo Interface, Micro USB v2.0- Wireless
802.11b/g, Bluetooth, FM radio- GPS
Yes- Camera
Front: 0.3MP, Back: 3.2MP- Color
Black / White- Battery
1500mAH, 3.7V- Size & weight
116.5×60×13.2mm, 135 grams- Package Content
110-230V USB Charger, Battery, USB cable, Earphone
MediaTek buoyed by rising demand for Lenovo smartphones [Sept 15, 2011]
Brisk sales of Lenovo’s A60-series smartphone in China has been boosting MediaTek’s shipments of its 3.5G solution, the MT6573, according to market sources. Order momentum is expected to remain strong to sustain the chip supplier’s sales growth in September and the third quarter.
The new Lenovo smartphone hit store shelves in China earlier in the third quarter, but has been selling well thanks to its rich feature set and affordable price point, the sources said. With demand outpacing supply, the A60 has been quoted at as high as CNY1,100 (US$172) by local channel operators, up about 30% from the just over CNY800 original priced, the sources indicated.
Meanwhile, in view of the Lenovo A60’s rising popularity, China’s channel operators have released more orders for the device prior to China’s National Day holidays, the sources observed. The booming demand will simultaneously push up MediaTek’s sales generated from the orders placed by Lenovo, the sources said.
MediaTek began to ship its MT6573 3.5G chipset solution to China in August. The company was quoted as saying in previous reports that it aims to ship 10 million 3G smartphone solutions in 2011.
MediaTek has estimated consolidated revenues at NT$22-23 billion (US$743-777 million) for the third quarter of 2011. Sales grew 16.3% sequentially to NT$8.31 billion in August, and are expected to post another sequential growth in September.
Market watchers now expect MediaTek to enjoy a more than 15% sequential increase in third-quarter sales, exceeding its guidance of 5-10% growth given previously.
Spreadtrum increases TD-SCDMA chip orders to TSMC, says paper [Sept 29, 2011]
China-based handset solution vendor Spreadtrum Communications will increase its orders for TD-SCDMA baseband chips to Taiwan Semiconductor Manufacturing Company (TSMC) in the fourth quarter of 2011, according to a Chinese-language Commercial Times report.
Spreadtrum has avoided directly competing with MediaTek in the 3G and 4G segments and instead focuses on TD-SCDMA chips in cooperation with China Mobile. Spreadtrum currently holds 56% of the TD-SCDMA chip market in China, the paper said.
The TD-SCDMA chips will be made on a 40nm process at TSMC, while Advanced Semiconductor Engineering (ASE) will handle the backend packaging and testing, said the paper.
Handset solution vendors competing neck and neck in 3G smartphone market in China [Sept 13, 2011]
Demand for smartphone solutions in emerging markets, particularly in China, is gaining momentum, pushing chipset vendors to compete neck and neck to grab a large piece for the growing market, according to industry sources.
Qualcomm and MediaTek are both targeting the WCDMA solution market in China, and the two companies have landed orders from some branded handset vendorsin China, the sources noted.
China-based chipset vendor Spreadtrum Communications has received orders for TD-SCDMA solutions from Samsung Electronics, while rival Taiwan-based MStar Semiconductor has ventured into the EDGE solution segment.
Qualcomm’s launch of QRD (Qualcomm reference design) in 2010 paved the way for the company to gain more 3G solution orders in 2011, and the US-based solution vendor is expected to further enhance its market leadership with the launch of its next generation QRD, said the sources.
HTC, a strong supporter of Qualcomm, also plans to strengthen its marketing in China in 2012which will also help Qualcomm expand its share in China’s smartphone market, the sources added.
MediaTek has continued to exert efforts to reduce its production costs through integration of hardware, software, firmware and even applications, said sources, noting that MediaTek also reportedly plans to cut the prices of 3G solutions by 10-20% at the end of the third quarter in order to compete with Qualcomm’s forthcoming second-generation QRD.
Meanwhile, MStar‘s shipments of EDGE solutions have reportedly reached over five million units a month recently and will soon become a growth driver for the company, the sources added.
Smartphones moving toward hardware competition [Aug 30, 2011]
The global market competition among iOS, Android, Windows Mango and BlackBerry platforms is expected to heat up in the fourth quarter as international vendors are going to launch flagship smartphone models, with hardware specifications expected to develop toward 1.5GHz dual-core processors, large screens over 4-inch, ultra-slim form-factors and supporting HSPA+download speeds of 21Mbps, according to Taiwan-based handset makers.
Given some mid-range smartphones have already adopted 1GHz processors, the new flagship high-end smartphones are trended towards processors clocking at 1.2-1.5GHz, the sources noted.
In addition to market speculation of dual-core A5 processors for Apple’s forthcoming iPhone 5, new flagship models from Samsung Electronics, HTC and Sony Ericsson will also be powered by dual-core CPUs, the sources added. However, Nokia and RIM (Research in Motion) are not expected to roll out dual-core models until 2012.
HTC, Samsung and LG Electronics (LGE) are also expected to roll out models with display sizes ranging from 4.3- to 4.5-, or even up 4.7 inch, the sources indicated.
Taiwan handset ODMs bracing for structural upheaval [Aug 23, 2011]
Taiwan-based handset ODMs are bracing for repercussions of structural upheaval to be brought by Google’s intention to buy Motorola Mobility and Hewlett-Packard’s (HP’s) plan to stop selling WebOS-based smartphones, according to sources at Taiwan’s handset industry.
Even before the announcements of the latest deals in the hectic smartphone industry, Taiwan-based handset ODMs have mostly failed to perform well due to lackluster sales of smarphones of their branded handset clients, including HP, Dell, Acer, Lenovo and even Motorola and Sony Ericsson, the sources noted.
Although Taiwan handset ODMs have diversified their product roadmapsto include models supporting Android, Windows Mobile and WebOS platforms, their operations would still be affected by Google’s and HP’s stunning announcements, said the sources, adding that Compal Communications and Foxconn International Holding (FIH) are expected to suffer the most.
While some handset ODMs have also ventured into the development of tablet PCs, shipment volume of tablets from those handset ODMs have been smaller than expected due to the dominance of the Apple iPad in the market, the sources pointed out.
Handset vendors reportedly cutting back chipset orders for 4Q11 [Aug 19, 2011]
Some handset solution suppliers have indicated that a number of handset vendors, including Apple and HTC, have scaled down their chipset orders for the fourth quarter as compared with the third on concerns of the global economy, according to sources at Taiwan-based chipset makers.
While most smartphone vendors are likely to reach their shipment targets for the third quarter, they have begun to reduce orders for parts and components for the fourth quarter in preparation for a possible impact from changing economic conditions, the sources noted.
HTC raised its internal shipment target for 2011 to 70 million units in the first quarter, from 50 million units it projected at the end of 2010. However, the company has recently revised downward the target to 50-60 million units, according to sources familiar with HTC’s roadmap.
Sources in the supply chain of iPhone have revealed that Apple has also scaled down its orders for handset parts and components to be shipped at the end of third quarter.
MediaTek to increase investment in 3G, says chairman [July 19, 2011]
MediaTek will further strengthen its deployment in the global 3G chipset market by pouring more capital and resources into the development of platform products and application software, according to company chairman Tsai Ming-kai.
Buoyed by rapid growth in applications for mobile connectivity, the 3G industry and market in China has been developing in a fast manner, and MediaTek aims to grow in tandem with China’s booming 3G industry, Tsai said at a WCDMA supply chain conference held by China Unicom in China recently.
MediaTek will also cooperate with the WCDMA operators and makers of the WCDMA supply chain in China on technology development and marketingto accelerate the advancement of the WCDMA industry in China.
MediaTek has offered its highly integrated MT6268 WCDMA solution plus multiple application software platforms to handset makers to develop and manufacture high performance WCDMA handsets.
MediaTek to ship 3G solutions in August [July 13, 2011]
MediaTek has confirmed that it will begin to ship its HSUPA solution, the MT6573, to clients in August, but the company declined to comment on market speculations that it has landed orders for a quantity of over one million units each from clients including Lenovo and ZTE.
The specifications and performance of the MT6573, which is set to run on Android 2.3.3 platform, are similar to those chips adopted by Apple’s iPhones and HTC’s 3G smartphones, indicating that MediaTek has begun to make inroads into the global 3G chipset market, commented industry sources in Taiwan.
Other China-based handset makers, including Ningbo Bird, China Tianx and Shanghai Ragentek Communication Technology, have also decided to adopt the MT6573 solutions, the sources added.
Qualcomm likely to slash 30% off entry-level 3G solutions in next 9-12 months, says paper [June 16, 2011]
Qualcomm is likely to slash its prices for 3G smartphone solutions by 30% in the next 9-12 months in order to prevent other chipset makers from grabbing its share in the entry-level 3G solution segment, the Chinese-language Commercial Times quoted Michael Chou, a semiconductor analyst with Deutsche Securities in Taipei, as indicating.
More first-tier branded handset vendors are likely to adopt Qualcomm’s solutions for the production of entry-level and mid-range 3G smartphones in the next 12 months as Qualcomm has migrated the production of its chipset solutions to a 40nm processat Taiwan Semiconductor Manufacturing Company (TSMC), Chou said.
Qualcomm’s price-cutting strategy will affect the performance of Asia-based chipset makers, including MediaTek and MStar Semiconductor. Deutsche Securities has recommended a sell rating on shares of MediaTek and a hold rating on MStar, said the paper.
MT6573 Innovative Platform for Mainstream Smartphones [Feb 11, 2011]
Overview
The MediaTek MT6573 platform incorporates a highly-integrated core chipset, a full range of connectivity solutions and supports the latest versions of the popular AndroidTM operating system. The MT6573 platform supports a quad-band, 3G/HSPA modem with mobile broadband rates of 7.2Mbps in the downlink and 5.76 Mbps uplink, as well as quad-band EDGE. The integrated applications processing system combines a 650 MHz dedicated ARM®11 subsystem for the Android operating system; support for advanced 3D graphics; multi-format video capture and playback up to FWVGA 30fps; high-resolution camera support to 8MP and a high-end FWVGA, touch-screen display. This platform chipset is completed with a full range of connectivity solutions for Bluetooth, WiFi, GPS, FM and Mobile TV from MediaTek.
Key Features
• The core chipset of the MT6573 integrates the modem, applications & multimedia subsystem and all necessary power management functions into a single SOC.
• Combined with a single-chip, multi-mode, multi-band transceiver, it enables extremely small footprints that allow for smaller, more innovative industrial designs and form-factors.
• Additionally, the integrated 3D graphics capability brings gaming and user interface capabilities that were previously available only to high-end smartphones.
• Finally, the platform provides for advanced camera and multimedia features that include smile and face detection, panorama and burst shot, as well as high-resolution video capture and playback.
• The platform can be delivered as a full system solution consisting of hardware reference design and fully-tested, compliant software suite that can improve design efficiency and speed time to market for customers in the rapidly changing smartphone market.
MediaTek’s newly announced MT6573 application processor integrates POWERVR graphics [March 8, 2011]
New SoC brings advanced graphics to mass-market smartphones
MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, and Imagination Technologies, a leading multimedia and communications technologies company, announce that MediaTek’s new application processor, features POWERVR graphics acceleration.
The MT6573 incorporates a POWERVR Series5 SGX GPU (graphics processing unit) from Imaginationto enable advanced smartphone graphics applications including gaming, navigation and location-based services, augmented reality and highly visual and dynamic user interfaces for the mainstream volume phone market.
MediaTek delivers innovative, feature-rich yet cost-effective solutions to meet consumer’s entertainment, communication and information needs. MediaTek is launching the MT6573 platform to address the accelerating demand for smartphones with features that can delight users at price points that meet the needs of operators in developed markets and consumers in emerging markets.
Says Hossein Yassaie, CEO, Imagination: “We are delighted that MediaTek has delivered this highly capable new mass-market application processor, which will enable its customers to address new levels of capabilities and meet emerging consumer demands for advanced performance in lower-priced smartphones. We look forward to building on our strategic relationship with this important semiconductor partner.”
Says Jeffrey Ju, General Manager of the Smartphone Business Unit at MediaTek: “MediaTek is committed to ensuring that wireless consumers across the globe can access the most advanced mobile technologies. Imagination delivers industry leading graphics technology and support, as well as an extensive and strong ecosystem of developers capable of utilising the technology. We are thrilled to have POWERVR graphics acceleration in MT6573, and the benefit of Imagination’s insight and experience as a strategic partner going forward.”
MediaTek announced the MT6573 platform for mainstream 3G smartphones [Feb 11] (emphasis is mine):
The MT6573 platform incorporates a highly-integrated, core chipset, a full range of connectivity solutions and supports the latest versions of the popular AndroidTM operating system. The MT6573 platform supports a quad-band [i.e.: all 4 GSM bands, the 850 and 1900 MHz bands – used in Americas – and 900/1800, used elsewhere], 3G/HSPA modem with mobile broadband rates of 7.2Mbps in the downlink and 5.76 Mbps uplink, as well as quad-band EDGE. The integrated applications processing system combines a 650 MHz dedicated ARM®11subsystem for the Android operating system; support for advanced 3D graphics; multi-format video capture and playback up to FWVGA 30fps; high-resolution camera support to 8MP and a high-end FWVGA, touch-screen display. The platform chipset is completed with a full range of connectivity solutions for Bluetooth, WiFi, GPS, FM radio and Mobile TV from MediaTek.
The core chipset of the MT6573 integrates the modem, applications, multimedia subsystem and all necessary power management functions into a single SOC. Combined with a single-chip, multi-mode, multi-band transceiver, it enables extremely small footprints that allow for smaller, more innovative industrial designs and form-factors. Additionally, the integrated 3D graphics capability brings gaming and user interface capabilities that were previously available only to high-end smartphones. Finally, the platform provides advanced camera and multimedia features that include smile and face detection, panorama and burst shot, as well as high-resolution video capture and playback. The platform can be delivered as a full system solution consisting of hardware reference design and fully-tested, compliant software suite that can improve design efficiency and speed time to market for customers in the rapidly changing smartphone market.
… The MT6573 platform is currently sampling to lead customers and will be in mass-production by mid 2011.
The precursor of 2012 smartphone war: Nokia Lumia vs. Samsung Omnia W in India
Updates:
Lumia 520 is the second bestseller on Flipkart, India’s Amazon.com (April 2, 2013)
| $385 | $193 | $129 | $267 |
| $105 | $27 | $250 | $28 |
but still Samsung’s entry level Andoid phone (Galaxy Y) is leading in price ($105) and #5.
– More than 221 million mobile handsets shipped in India during CY 2012, a Y-o-Y growth of 20.8%; Nokia retains overall leadership [CyberMedia Research, India press release, April 1, 2013]
Smartphone shipments cross 15 million units, 2H numbers grow 75.2% HY-o-HY; Samsung still the favourite but Sony and Indian players make their mark through differentiated offerings
According to CMR’s India Mobile Handsets Market Review, CY 2012, March 2013 release, India registered 221.6 million mobile handset shipments for CY (January-December) 2012. During the same period, 15.2 million smartphones were shipped in the country.
Table 1. India Mobile Handsets Market: CY 2012 versus CY 2011 (in terms of unit shipments)
Form Factor
Mobile Handsets
Featurephones
Smartphones
Shipments
(CY 2011)183.4
172.2
11.2
Shipments
(CY 2012)221.6
206.4
15.2
Year-on-Year Growth, CY 2012 over
CY 2011 (%)20.80%
19.90%
35.70%
Half Year-on-Half Year Growth, 2H 2012 over
1H 2012 (%)16.40%
11.30%
75.20%
Source: CMR’s India Mobile Handsets Market Review, CY 2012, March 2013 release
A comparison of overall mobile handset shipments and featurephone shipments shows a direct correlation for the India mobile handsets market rankings. Market shares are somewhat similar for the top three players across the overall market and the featurephones segment, as shown in Table 2.
Table 2. India Mobile Handsets Market: Leading Players, CY 2012 (% of unit shipments)
Player
Nokia
Samsung
Micromax
Rank – Overall
#1
#2
#3
Share – Overall (% of unit shipments)
21.80%
[~45M]13.70%
[~28.3M]6.60%
[~13.6M]Rank – Featurephones segment
#1
#2
#3
Share – Featurephones segment (% of unit shipments of featurephones)
22.50%
11.50%
6.50%
Source: CMR’s India Mobile Handsets Market Review, CY 2012, March 2013 release
Commenting on the results, Faisal Kawoosa, Lead Analyst, CMR Telecoms Practice said, “Although we see a huge market ‘hype’ around smartphones, the fact remains that the India Mobile Handsets market is still dominated by shipments of featurephones. On the other hand smartphone shipments are growing fast. This indicates India is still a ‘new phone’ market, where featurephones contribute to the bulk of shipments compared to replacements or upgrades.”
“This propensity on the part of Indian subscribers of mobile telephony services to purchase large numbers of featurephones has paved the way for the establishment of Indian brands, which are largely focused on this segment.”
India Smartphones Market
The India smartphones market during 2H 2012 saw a rise in shipments by 75.2% over and above the 1H 2012 number, taking the overall contribution of smartphones to 6.8% for the full year. In fact, during 2H 2012, smartphone shipments stood at 8.1% of the country’s total mobile handset shipments. While BlackBerry was at third spot during 1H 2012, Sony Mobiles displaced the former if we examine numbers for the full CY 2012.
Table 3. India Mobile Handsets Market: Leading Smartphone Players, CY 2012 (in terms of % of unit shipments)
Player
Rank
Share (% of unit shipments of smartphones)
Samsung*
#1
43.1% [~6.5M]
Nokia
#2
13.3% [~ 2M]
Sony Mobiles
#3
8.2% [~1.25M]
* Smartphone shipments reported here for Samsung for CY 2011 and CY 2012 do not include shipments of ‘phablet’ (> 5″ screen size) models such as the Samsung Galaxy Note and the Samsung Galaxy Note II.
Source: CMR’s India Mobile Handsets Market Review, CY 2012, March 2013
Commenting on these results, Tarun Pathak, Analyst, CMR Telecoms Practice said, “The India smartphones segment has very distinct characteristics vis-à-vis the overall market. We believe the struggle for leadership in the India smartphones market is going to intensify through 2013 as vendors bring new form factors to market.”
“Players such as Samsung, HTC and Sony Mobiles will increasingly try to establish leadership through differentiated offerings and by promising a ‘seamless’ experience across the four consumer screens – smartphone, tablet, PC and TV. At the same time, home grown vendors such as Micromax, Karbonn and Lava will try to make a mark against their global competitors, by bringing to market powerful, yet attractively priced smartphones in an attempt to widen their appeal and grow the overall smartphone user base”, Tarun added.
Notes for Editors
This release is a part of the CyberMedia Research (CMR) Smart Mobility Market Programme.
CyberMedia Research (CMR) uses the term “shipments” to describe the number of handsets leaving the factory premises for OEM sales or stocking by distributors and retailers. For the convenience of media, the term shipments has been replaced by ‘sales’ in the press release, but this reflects the market size in terms of units of mobile handsets and not their absolute value. In the case of handsets imported into the country it represents the number leaving the first warehouse to OEMs, distributors and retailers. CyberMedia Research does not track the number of handsets brought on their person by individual passengers landing on Indian soil from overseas destinations or ‘grey market’ handsets. These are, therefore, not part of the CyberMedia Research numbers reported here.
CyberMedia Research (CMR) tracks shipments of mobile handsets on a monthly basis. However, as per convention, the market size is reported on a calendar quarter basis where appropriate to the context; in all such cases this refers to an aggregated number for the three calendar months in the quarter to which the press release refers.
Note that the Nokia smartphone numbers by CMR given above most probably do not include the Nokia Asha Touch “smartphones”. See their opinion about that:
Nokia Asha: Not yet a smartphone, yet is it Nokia’s “asha” for better times ahead [by Tarun Pathak from CyberMedia Research, India, Dec 18, 2012]
Almost a year ago Nokia launched its Lumia range of smartphones based on the Windows Mobile OS, alongside the Asha series. The market scenario at the time was different – Nokia was still the global market leader, despite its declining smartphones share and was banking on the Microsoft Windows Mobile OS for its new range of Lumia smartphones to reverse the declining trend in smartphones and stop, or at least slow down, the ever increasing dominance of Android and Apple iOS. But then things didn’t go as expected. Nokia continued to lose its global market share and eventually lost it mobile handsets market dominance of 14 years to Samsung in April 2012. There were two trends in the Nokia Quarterly results starting from 1Q 2012 – volume shipments of smart devices mainly dependent on the Lumia range continued to decline, whereas the shipments of featurephones led by Asha range of handsets started to show an increase.
Quarterly Performance of Nokia Devices Business
3Q 2011
4Q 2011
1Q 2012
2Q 2012
3Q 2012
Smart devices
16.8
19.6
11.9
10.2
6.3
Mobile Phones
89.8
93.9
70.8
73.5
76.6
Source: Nokia Quarterly Results,October 18, 2012
Nokia Lumia initially positioned as ‘more than a smartphone’ has received a lukewarm response from customers, when compared with the high decibel launch of Samsung’s Galaxy SIII and Galaxy Note 2, Apple’s iPhone 5, HTC’s One X etc.
On the other hand, Nokia Asha, initially positioned as ‘a cross between a featurephone and smartphone’ is receiving positive customer response globally.
In recent days, we have heard talk about the full-touch Asha series of devices being positioned as ‘smart featurephones’, but before going into the reasons for this rethinking, let us understand how exactly is a smartphone different from a featurephone. Smartphones are devices which run on evolved operating systems (Symbian S60, Windows Mobile, Linux, BlackBerry OS, WebOS, Android, iOS etc.), and have the ability to download and run applications and store user data beyond their required personal information management (PIM) capabilities. Featurephones run on a Real Time Operating System (RTOS) such as Java or BREW, and can download only Java apps without access to Android or iPhone apps.
So technically Nokia Asha doesn’t fit into the definition of a smartphone and responding to my question during a recent Nokia Talks webcast, a Nokia official confirmed the same. However, if we compare feature-to-feature, the capabilities of Asha phones can give smartphones a run for their money. Full touchscreen, cloud-accelerated Nokia browser for providing a fast and affordable internet experience, Nokia’s location based platform, online games, social networking integration and powerful processor etc., they have almost all the features a smartphone should have at an affordable price point ranging between INR 4,000-7,500.
Therefore, it is only natural for Nokia to position the full-touch range of Asha phones as smartphones. One may term it as a marketing tactic, especially in view of Nokia having a tough time in the smartphones market. Since 43% of smartphone sales in India are under the INR 10,000 price point (Source: CMR, 2012), it makes eminent sense for Nokia to push the full touch Asha devices as smartphones. So, while technically the Asha series might not qualify as a smartphone, they are smarter than many devices in the price range and may well be the lifeline that Nokia is looking for, to shore up its fortunes in the long road to recovery.
– Lumia 800 US$ 389 (INR 21,799) [July 9, 2012]
– Lumia 710 US$ 248 (INR 13,899) [July 9, 2012]
– India mobile phone sales cross 50 million mark in Jan-Mar 2012; up 9.1% YoY [CyberMedia Research, India press release, July 3, 2012]
Smartphones make up 5.3% of units sold and almost a quarter of total handset revenues
Multi-SIM handsets account for two-thirds of total sales; 3G phone sales still below 10 per cent of total sales
New Delhi / Gurgaon, July 3, 2012: The overall India mobile handsets market registered sales of 50.2 million units during January-March 2012. This was reported in the CyberMedia Research India Monthly Mobile Handsets Market Review for 1Q 2012 released today.
In the overall India mobile handsets market, Nokia retained leadership position with 23% share, followed by Samsung at second position with 14.1% and Micromax at third position with 5.8%, in terms of sales (unit shipments) during January-March 2012.
Table 1. India Monthly Mobile Handset Shipments (millions of units),
January-March 2012*
*Source: CyberMedia Research India Monthly Mobile Handsets Market Review for 1Q 2012,
June 2012 releaseOverall India Mobile Handsets Market by PriceBand
Figure 1. India Mobile Handsets Market by Price Band
* Source: CyberMedia Research, 2012
<INR 5000: <US$ 89 INR 5001-10000: US$ 89-179
INR 10001-15000: US$ 179-268
INR 15001-20000: US$ 268-357
INR 20001-25000: US$ 357-447
INR 25001-30000: US$ 447-536 >INR 30000: >US$ 536India Smartphones Market: The Shape of Things to Come
Total India smartphone sales touched 2.7 million units during January-March 2012. Samsung emerged as the leader in the smartphone segment with a 40.4% share, followed at No. 2 and No. 3 by Nokia with 25.5% and RIM with 12.3% share respectively.
Table 3. India Mobile Handsets Market: Shares of leading Vendors in Smartphones*
* Source: CyberMedia Research India Monthly Mobile Handsets Market Review for 1Q 2012, June 2012 release
In 1Q 2012, Samsung launched seven new smartphone models in India, further tightening its grip on sales in different price bands between INR 7,500 [$134] to INR 27,000 [$482]. This is the range in which the company sells its portfolio of smartphones currently. It excludes products like the Samsung Galaxy Note, which, with a 5″ screen is categorized under the category of media tablets / tablet PCs. Indian mobile handset vendors have also started aggressively widening their Android-based smartphones portfolio.
Figure 2. India Mobile Handsets Market
by Price Band in 1Q 2012:
Converging Towards Two ‘Poles’
*Source: CyberMedia Research, 2012
“As the India mobile handsets market grows in maturity, the needs of users are clearly seen to be converging around two major form factors – high-power, high-speed smartphones vis-à-vis value-plus, content-enabled featurephones. While most players are strong in a particular category, Samsung and others have been able to maintain a strong presence across the spectrum, driven mainly by innovation, quick time-to-market and a segmented approach”, stated Anirban Banerjee, Associate Vice President, Research and Advisory Services, CyberMedia Research.
“Players like Motorola and Sony have clearly chosen to stay in the ‘high value’ smartphones segment, which accounts for just 5.3% of shipments but added up to as much as 23.4% of the market value in 1Q 2012. Currently, large, international players like Nokia and RIM, as well as relatively new entrants like Micromax, Karbonn, Lava and Spice are faced with the challenge to enhance their portfolio of products, models and services, to stay relevant and profitable in the long run”, added Naveen Mishra, Lead Analyst, CMR Telecoms Practice.
India 3G Phones Market: Decline in Data Tariffs to Trigger Increase in Shipments?
Shipments of multi-SIM handset category continued its rise, accounting for as much as 67.7% of total shipments in 1Q 2012. However, even more significantly, total shipments of 3G-enabled mobile handsets in the country touched 4.7 million units during 1Q 2012 (January-March 2012). While this was a decline of (-)7.8% over the 4Q 2011 (October-December 2011) ‘festival quarter’, it was a growth of 34.3% over 1Q 2011 (January-March 2011).
“With the recently announced reduction in tariffs of 3G services by as much as 70% by leading India telecom service providers, the market for both 3G-enabled devices and mobile broadband-driven content is likely to see an upward trend in adoption in the forthcoming quarters”, stated Tarun Pathak, Analyst, CMR Telecoms Practice.
Notes to Editors
- CyberMedia Research, India uses the term “shipments” to describe the number of handsets leaving the factory premises for OEM sales or stocking by distributors and retailers. For the convenience of media, the term shipments has been replaced by ‘sales’ in the press release, but this reflects the market size in terms of units of mobile handsets and not their absolute value. In the case of handsets imported into the country it represents the number leaving the first warehouse to OEMs, distributors and retailers. CyberMedia Research does not track the number of handsets brought on their person by individual passengers landing on Indian soil from overseas destinations or ‘grey market’ handsets. These are, therefore, not part of the CyberMedia Research numbers reported here.
- CyberMedia Research, India tracks shipments of mobile handsets on a monthly basis. However, as per convention, the market size may be reported on a calendar quarter basis where appropriate to the context; in all such cases this refers to an aggregated number for the three calendar months in the quarter to which the press release refers.
– Lumia 800 price lowered by Nokia more than 20% to as low as US$ 471 (INR 23,490) in retail. This is said to be for the preparation of the Lumia 900 launch there. [March 3, 2012]
– Lumia 710 US$ 309 (INR 15,490) [Jan. 23, 2012]
– Nokia Lumia Momentum Map [Nokia Maps Blog, Jan 15, 2012]
If a picture is worth a thousand words, an interactive map is at least worth ten thousand words! To coincide with the launch of Nokia Lumia in USA; we launched the Nokia Lumia Momentum Map – an interactive way to check out the countries where Nokia Lumia smart phones are either available or will be coming soon. You can also check out the tweets, videos and photos from users about the Lumia series.
The content of the Momentum Map as of Jan 15, 2012:
| Country | Lumia 710 | Lumia 800 |
| Germany | Now | Now |
| Netherlands | Now | Now |
| Italy | Now | Now |
| Russia | Now | Now |
| India | Now | Now |
| Hong Kong | Now | Now |
| Taiwan | Now | Now |
| Singapore | Now | Now |
| Spain | Jan 11, 2012 | Now |
| United Kingdom | Feb 1, 2012 | Now |
| USA (+ Lumia 900 “in coming months”) |
Jan 11, 2012 | Coming Soon |
| France | n.a. | Now |
| Austria | Coming Soon | Now |
| Hungary | Jan 20, 2012 | Jan 20, 2012 |
| Greece | Jan 21, 2012 | Jan 20, 2012 |
| Portugal | Feb 2, 2012 | Jan 26, 2012 |
| Switzerland | n.a. | Jan 13, 2012 |
| Denmark | n.a. | Jan 20, 2012 |
| Sweden | n.a. | Jan 23, 2012 |
| Norway | Feb 1, 2012 | Feb 1, 2012 |
| Canada | Feb, 2012 | Feb, 2012 |
| Belgium | Mar 1, 2012 | Feb 1, 2012 |
End of Updates
Windows Phone 7.5 (Mango) smartphones are already in heavy competition between Nokia and Samsung on the Indian market. The current mid-range retail price is ~$340 for both companies as shown below, while the lower end premium Lumia 800 is without competitive offering from Samsung side, yet it already costs only $526 and up. Note that in the first half of 2012 even these offerings will likely to go down with Lumia 710 (and Samsung Omina W) becoming a mass market smartphone in the range of $200-250, while the Lumia 800 a higher end mid-range smartphone with a price tag of $400-450. This is also proven by a companion post The new, high-volume market in China is ready to define the 2012 smartphone war [Jan 6, 2012].
(After the details about the specifics of Nokia Lumia offerings please find as well two recent article excerpts about the ongoing fight between the two companies on the Indian market. Product information is from corresponding company product sites in India: Lumia 800, Lumia 710 and Omnia W. Lumia 800 is currently sold for $529 [listed for $899] on Amazon in USA, while in Germany for € 398 ($520) [listed for € 499 ($652)]. Lumia 710 price on Amazon in Germany is € 315 ($411) [listed for € 319 ($417)]. All Euro prices are inclusive German VAT! Note as well that Omina W is available as Focus Flash in the USA for $199 [listed for $299] unlocked as the lowest retail price.)
While all the advantages are shown in red ink above, the biggest advantages for Lumias are:
– The leading ClearBlack display technology from Nokia [Dec 18, 2011]
– Corning Gorilla Glass (wikipedia article)
– Best practice industrial and user experience design – Nokia and Microsoft [Dec 17, 2011] where an absolutely leading edge industrial design achievement of “seamless design with curved glass and one-piece body made of polycarbonate plastic“ of Nokia N9 has been re-applied by Nokia for Lumia 800 as well. More understanding of that you could see in this Nokia N9 Journey [nokia, Oct 24, 2011] video:
– Nokia Lumia 800 Uncovered: Battery Life [nokia, Nov 16, 2011]
There is also significant advantage in the bundled cloud services described in Nokia Lumia (Windows Phone 7) value proposition [Oct 26, 2011] as the “Three Unique Differentiators”:
– Free Nokia Music and MixRadio
– Free Navigation
– Free ESPN Sports Hub
The latter is not available in India (obviously) but something similar may be introduced later, designed especially for India’s sport fans.
Music and Entertainment – Nokia Lumia 710 [nokia, Jan 2, 2012]
Nokia Lumia Presents: Little Amazing Show – Episode 6: India [nokia, Jan 3, 2012]
Also check out our other Little Amazing Shows:
Episode 1: Berlin http://nokia.ly/vTphrR
Episode 2: London http://nokia.ly/u8uj0G
Episode 3: Madrid http://nokia.ly/uWAYMy
Episode 4: Night http://nokia.ly/uzwtJq
Episode 5: Paris http://nokia.ly/uwWYCv
For more information on Nokia Lumia visit http://nokia.ly/rZWC93
Nokia banks on Lumia to be game changer in smartphone mkt [Jan 3, 2011]
Over the last year, Nokia’s fortunes took a turn for the worse, with its market share sliding downwards, losing its number one position in smartphones to Samsung, both, globally and in India. CNBC-TV18’s Anuradha Sengupta met Nokia’s managing director D Shivakumar and got him talking on why its newest phone, its first in collaboration with Microsoft – the Lumia will be a game changer for the Finnish company.
Q: What makes the Lumia a game changer?
A: When we made this announcement most people thought it was a defensive kind of a move, but in the last nine months it has completely realigned the ecosystem in telecom. So it has been a big game changer, not just for Nokia, but for everybody out there in the ecosystem. Nokia is giving it’s very best in terms of promoting it, in terms of the look and feel of the product, in terms of what’s available on it and more importantly in terms of the local apps that we have in India for the Lumia 800 and 710.
Q: Will the Lumia’s success be a make or break for Nokia’s future leadership position in the smartphone category?
A: I would say making Nokia Lumia work is plan A. Plan B is making Nokia Lumia work.
Q: I have been hearing statements that you have made a reaction to comments that when it came to this end of the market, the dual SIM card phone was a game changer and that is where you have admitted in interviews and conversations that it was a mistake, that Nokia did not cotton on to it. Why was this?
A: The early signals we picked were more than three years ago and we didn’t even say dual SIM, we actually talked of triple SIM. We could see it coming. Technology is global in nature, especially in this category. No one country can give you sufficient volume to build your own variant because of 17 operators, because of the price war between the operators led to the concept of dual SIM, it was not seen in most other places.
Doing a dual SIM phone for an operator buying anywhere else in the world would be like waving a red flag. It’s a host of factors. It has nothing to do with not reading the market or not seeing the consumer.
Samsung ambushes Nokia in smartphone war [The Economic Times [India], Jan 2, 2011]
In a packed theatre, scores of excited movie buffs sat through a long march of commercials patiently, but the organisers were dismayed. It was an exclusive premier of SRK-starrer Ra.One for mobile phone maker Nokia’s premium users at PVR Select City Walk mall in Delhi, but the advertisements that had been running for the previous few minutes were of Samsung mobile!
That was in October. Two months later, when Nokia rolled out Lumia cabs in Bangalore as part of its biggest marketing drive in the country to promote its first Windows smartphone, Samsung brought out its own Omnia cab and stationed it outside the Lumia showroom for a few days.
Analysts call it ambush marketing, Samsung says it’s not. Whatever, but the cut-throat competition between the country’s top two mobile handset players looks like the old Cola War between Coca-Cola and PepsiCo and refreshes memories of Pepsi’s ‘Nothing official about it’ campaign during the 1996 cricket World Cup that introduced the concept of ambush marketing in India.
“We do not acknowledge, react or engage in ambush marketing,” a Nokia spokesperson says. “We believe in responsible marketing, where we will disclose more than what is required to our consumers, as we did in the case of the minor software glitch in Lumia 800.”
Samsung denies ambushing Nokia, and says both the examples were part of independent marketing initiatives. “We were running a media innovation in October for tablets wherein all screens at Ambience Mall PVR and Inox in Mumbai showed the ads,” a Samsung spokeswoman says.
ALL IS FAIR IN LOVE & WAR
Samsung has emerged the most aggressive mobile handset maker over the past couple of years. It pipped Apple as the world’s top smartphone player during the July-September quarter last year and in India, GfK data suggests Samsung may have already overtaken Nokia as the largest smartphone vendor in value terms, thanks to the rising popularity of its Google Android phones led by the Galaxy range.
The marketing war in India has intensified after Nokia rolled out its first Windows-based smartphone, Lumia, last month. Samsung has started pushing its own Windows smartphone Omnia, launched more than a year ago, harder.
An email comparing Lumia 800 and Omnia W features and concluding ‘Why donate 9,000 extra to Nokia’ is in circulation. While Samsung denies any connection with the mail, Nokia says ambush marketing is not about deriding the other brand. “Ambush marketing, if done in a creative manner, appeals to the consumers,” says a Nokia spokesperson. “It’s not a crude attack on the rival.”
Some marketing experts believe Samsung is playing it smart. “Competition is all about being opportunistic and scoring a goal when the rival is least prepared. And that’s where Samsung has proved to be a better player,” says Saurabh Uboweja, director of brand consulting and design firm Brands of Desire.
Even if customers think Samsung played the smart Alec, it won’t hurt the brand as the ambush creates the perception of a smart, witty and on-the-go brand, says Uboweja.
“It’s much like the customers today who don’t feel guilty about pulling a leg or playing a prank on their peers,” he adds.
RULES OF AMBUSH
Former advertising professional and chick lit writer Anuja Chauhan says focused ambushing is better than rapid-fire ambushing. “It makes more sense to keep it (ambush) more informative and publicise it,” says Chauhan, who came up with the ‘Nothing official about it’ tagline for Pepsi in 1996.
The aim of the ambush is to leverage the strength of the competitor. It has to be smart and not say derogatory things about the competitor, she says. An independent analyst says Samsung’s strategy won’t affect Nokia.
“Even in a war, ambush is the recourse of an upstart, and not of the ruler,” says the analyst, requesting anonymity. “At best, ambush can be a tactical move. But it won’t hurt Nokia.”
YLR Moorthi, professor (marketing), IIM-Bangalore, says ambush marketing somehow speaks of a company not confident of holding out in the open. “Samsung is a challenger in the mobile market in India. So, they might be seeking out opportunities to hurt Nokia,” he says.
And it has managed to bridge the gap with Nokia considerably in the smartphone segment, which accounts for some 8% of the 213-million Indian handset market. According to latest IDC figures, Nokia accounted for 35.3% of all smartphone shipments in the country during the July-September quarter last year, followed by Samsung at 26%.
In the overall mobile phone market, the market shares are 31.8% and 17.5%, respectively, for Nokia and Samsung. Deepak Kumar, research director (telecommunications & mobile phones) at IDC India, says the smartphone landscape in India will remain fluid for the next couple of quarters.
“The picture would start becoming clear in the second half of 2012, when the various operating system platforms would have mostly unfolded their plays across a variety of hardware,” says Kumar.
Nokia to launch Windows-based Lumia in India today [The Times of India, Dec 16, 2011]
Nokia has unleashed its biggest-ever marketing campaign in India for the launch of its Windows-based smartphone Lumia on Friday, so as to keep itself relevant in a market being swarmed by Google Android phones such as Samsung Galaxyrange.Called The Amazing Everyday, the campaign includes impromptu dance performance by a foreign troupe in Mumbai; a luxury helicopter ride for consumers in Bangalore, Hyderabad and Chennai; exclusive premiere for pre-bookers with tennis star Sania Mirza at Ambience Mall in Gurgaon late on Thursday; a mega musical event in Delhi on Friday, and toll exemption for more than 15,000 cars at DND Freeway connecting Delhi and Noida on Friday, among several others including aggressive advertisement across different media platforms, to connect with the young consumers across top cities.”It’s a gamechanger for us,” says Nokia India Marketing Director Viral Oza. “We have redefined what we mean to the consumers.” Analysts call it a desperate attempt to reclaim ground in the smartphone market. “Nokia is desperate to make Lumia work,” says Saurabh Uboweja, director of brand consulting and design firm Brands of Desire.”If Lumia flops, Nokia is likely to become conservative in marketing.” Lumia is Nokia’s first serious offering in smartphones comparable to Apple iPhone and top Android phones of Samsung, HTC and Motorola. And the Finnish firm, which still dominates the Indian handset market with a 30% share, is leaving no stone unturned in its bid to make Lumia a success.Apart from an extensive experiential marketing, the handset major rolled out an internal campaign for its employees from December 12-16. So, it was WOW Monday for Nokia staff, who discovered a giant life-size Lumia in office and were asked to tap on it to get gifts such as chocolates, laptop stickers and Rubik cubes.On Kinetic Tuesday, scooties were placed around office for employees to have fun rides; on Surprise Wednesday, employees went around office hunting for magic boxes; and they put on their dancing shoes on Foottapping Thursday.On Friday, the officewill remain closed and all employees will be in the market to attend the big launch events. Abhishek Chauhan, senior consultant (ICT practice) at Frost & Sullivan, says Nokia’s first Windows-based smartphone will get a momentum from the extensive marketing campaign.”But the momentum can be sustained only if the product works,” he says. And, not many experts see Lumia as a game changer. “Lumia might pose serious competition, but it’s definitely not a game changer,” says Uboweja of Brands of Desire.”There is nothing so exciting in the product that is way beyond or different from other smartphones.” Experts are particularly critical of Nokia’s decision to use only Symbian and Windows platforms for its phones, and leave the world’s most popular Android OS out.This is the first product under the Nokia-Microsoft partnership and the stakes are high for Nokia. “Nokia may get the knockout punch if Lumia fails to inspire consumer imagination,” says Uboweja.
India Handset Shipments, Vendor Market Share, Strategies and Key Trends Q3’2011 [Research and Markets report release announcement, Jan 4, 2012]
This report provides an in-depth assessment of handset shipments, vendor market share, strategies and key trends in Q3’2011 for the mobile handsets industry in India. Mobile handset shipments in India have been increasing and they were highest in 2010 with 146.93 million units. The shipments in 2011 are expected to reach all time high as the shipment for 3 quarters in 2011 is 125.32 million units. By the end of Q4’2011, a yearly figure of 162 million units is expected.
India has been one of the major players in the Asia Pacific handset shipments and since 2009 India has been able to capture more than 20% of the overall Asia Pacific shipments, with a market share of over There has been quarter on quarter growth in the handset shipments in India barring a few exceptions in two quarters.
Local manufacturing has been very beneficial for mobile handset makers in India and many Indian players are manufacturing the product locally. All the other players, who do not have the local manufacturing, are planning to start the manufacturing to get away with the problems of currency exchange rates and supply side spikes.
Nokia has been the top player in the Indian mobile handset market and it has achieved a market share of 29.44% in 2011 for all the three quarters. Nokia has been losing its share to new entrants and local players in the Indian market. Samsung is coming strongly and it is in the second place with 14.34% market share. The share of Samsung is up by 14.63% from 2010. Though all the players are trying to gain market share but still Nokia is way above all of them and it will take a long time before anyone else can take the lead position. Local playersMicromax, Maxx, Lava and Videocon are gaining market share and most of them have launched low cost phones with features such as dual-SIM, long battery life etc. Local players also have the advantage of local manufacturing.
Smartphone sales to double in 2012 [The Times of India, Jan 5, 2012]
… smartphones are expected to double sales this year from nearly nine million units, and lead the growth in the segment.
Smartphones have grown from a 2% share to 6% of the overall mobile market, estimated at 150 million units. Priced in the range Rs 6,000 to Rs 40,000, smartphones have witnessed a deep penetration not only among business executives, but also among youth for on-the-go entertainment and functional use.
“Smartphones and convergence devices like the Galaxy Note and tablets are showing a strong adoption in the market linked with the growing consumer need for staying connected with their friends /family /work, while being on the move as well as personalizing them by downloading applications”, says Ranjit Yadav, country head, Samsung Mobile & IT.
Samsung, which has a portfolio of 13 smartphones across platforms, emerged as the leader with the largest value and volume market share in November.
Factors which have spurred growth in these devices are affordability and availability across operating platforms – Windows, Android and bada. Industries are increasingly applying mobile services in banking, manufacturing, retail, hospitality and healthcare, while automotive, logistics and consumer goods companies are using them to streamline inventory management, track demand, and manage shelf space.
The market dominated by Samsung, Nokia and RIM is expected to get more crowded with the entry of Chinese and other domestic companies this year.
The ZTE way of capitalizing on the LTE opportunity
Recommeded prelimary reading:
– Mobile Internet (Aug’11) [Aug 26, 2011] with a lot of additions to the original July 19, 2010 content on the following subjects:
– LTE and LTE Advanced — HSPA Evolved (parallel to LTE and LTE Advanced) — Heterogeneous networks or HetNets — Femtocells and Picocells — Qualcomm innovations in all that — Ericsson’s LTE Advanced demo — Current roadmaps on evolutions of current 3G+ broadband mobile networks
Updates: – China Mobile reportedly to obtain 4G license in December 2012 [Feb 10, 2012]
The China government reportedly will issue 4G licenses earlier than originally expected in December 2012 and China Mobile may be the first to obtain a license and adopt TD-LTE (Time Division-Long Term Evolution) as a 4G standard with commercial operation to begin in 2014, according to China-based media.
– China government not expected to issue TD-LTE operating license for the time being [Jan 16, 2012]
While China Mobile has been actively promoting TD-LTE, the China government is not expected to issue a TD-LTE operating license to China Mobile for the time being, according to industry sources.
China Mobile finished initial TD-LTE trials in seven selected cities in China around the end of 2011 and has proposed a second-round of trials, but the China government has not yet approved the plans, signaling the government’s attitude to slow down promotion of TD-LTE in China, the sources indicated.
This is because 3G mobile communication services are taking off in the China market and therefore the government does not want to issue a TD-LTE operating license out of consideration for China Telecom and China Unicom, the sources said.
End of updates
Interview with ZTE President and CEO Shi Lirong during the GSMA Board Metting in Malaysia [ZTEGlobal , Aug 1, 2011]
Mr. Shi Lirong, 46, is an Executive Director and the President of ZTE Corporation since April, 2010. He served as an Executive Vice President of ZTE Corporation from 1999 to March 2010 responsible for managing the Company’s sales and business development operations. Mr. Shi held the post of Vice President at Zhongxingxin Telecommunications Equipment Company, Limited (the “Zhongxingxin”), during 1993 – 1997. Zhongxingxin is controlling shareholder of ZTE. In Feb 2001, he was appointed as Executive Director of ZTE Corporation. Combined with more than 19 years of management skills, Mr. Shi has an in-depth knowledge and understanding of the telecommunications industry. Mr. Shi holds 200,283 A shares of ZTE. Mr. Shi holds a Master’s degree in Telecommunication and Electronic System Engineering from Tsinghua University, and a Master’s degree in Engineering, specializing in Telecommunications and Electronic Engineering from Shanghai Jiao Tong University (SJTU). FROM: http://wwwen.zte.com.cn/en/press_center/news/201004/t20100408_181868.html
Hi3G and ZTE Jointly Announce the Availability of World’s First LTE FDD/TDD Dual-mode Commercial Network [ZTE press release, Dec 15, 2011]
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, in collaboration with Swedish carrier Hi3G, has announced that the world’s first commercial LTE FDD/TDD dual-mode network has gone live in Stockholm, Gothenburg and Malmo.
Hi3G is committed to upgrading its network to enhance the subscriber experience with significantly faster radio access speeds and a much more extensive range of data services. Hi3G signed this LTE network contract with ZTE, in March 2011, to cover the whole of Sweden.
Jörgen Askeroth, CTO of Hi3G, commented: “This network fully indicates the practical use of the mature LTE multi-mode convergent solution. It allows us to extend the partnership with ZTE.”
Mr. Wang Shouchen, VP of ZTE said: “With the advent of the NMT in 1981, the people in the Nordic region were the first to benefit from genuine cellular coverage. Thirty years on, they will be the first users to benefit from the services delivered by the world’s first dual-mode 4G network. And they can roam to other LTE networks all over the world. It is not only high speed wireless services that new technology brings, for Hi3G this is also an opportunity to evolve the network.”
This commercial dual-mode network will greatly enhance the network performance of Hi3G and provide better service experience to local users. The network roll out enables Hi3G to significantly reduce its total cost of ownership by adopting a whole new generation of green energy-saving base stations. As Hi3G improves its competitiveness, more and more “affordable and easy advanced services” will be available to Hi3G subscribers.
ZTE Roadshow Germany [Sept 18, 2011]
ZTE, E-Plus and China Mobile Reveal Industry’s First TD-LTE Compact Smart Antenna [ZTE press release, Dec 19, 2011]
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, German carrier E-Plus and China Mobile, all members of the Next Generation Mobile Network Alliance (NGMN), have publicly demonstrated the industry’s first TD-LTE Compact Smart Antenna which is approximately half the size of traditional TD-LTE solutionson the market.
Mr. Wang Shouchen, VP of ZTE says: “At present, spectral resources are very scarce all over the world. More and more European operators are showing interest in TD-LTE. However, the size of traditional TDD smart antennas can make installation a real challenge and push CAPEX up significantly. The TD-LTE Compact Smart Antenna is half the size of traditional TD-LTE antenna and reduces the cost and time taken for installation.”
The TD-LTE Compact Smart Antenna was showcased at NGMN’s Multi-Antenna Technology Conference in Dusseldorf, Germany. The demo showed a peak rate of 8Mbps at the cell edge with beam forming technology on 10MHz bandwidth.
The TD-LTE Compact Smart Antenna showcase follows successful field trials between ZTE, E-Plus and China Mobile, in 2011, that consisted of several streams investigating the capabilities of ZTE’s commercial SDR equipment and best use of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.
Zhu Xiao Dong, CTO of European Marketing, ZTE [LTEWorldSeries , Nov 15, 2011]
Zhu Xiao Dong, CTO of European Marketing at ZTE discusses his thoughts at 2011’s LTE World Summit in Amsterdam (May 17 – 18).
ZTE Wins Informa LTE Award for Best Enabling Technology [ZTE press release, Nov 21, 2011]
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, today announced its ZXSDR BS8920 micro base station won the 2011 Informa LTE Award for Best Enabling Technologyat the LTE North America conference in Dallas, Texas.
The ZXSDR BS8920 was developed based on ZTE’s Uni-RAN platform, and is the world’s first commercial LTE micro base station. The product’s hardware cost is 50 per cent less than traditional distributed base stations, and its auxiliary facility costs are 30 per cent less in comparison. It is compact and lightweight and supports all-standard LTE bands. Its low power consumption helps operators reduce total cost of ownership.
The Informa award solidifies ZTE’s leading position as a provider of commercial LTE products, all-network solutions, and enhanced small cell coverage technology that can be used in airports, shopping centers, subways and other indoor hotspots. Awards at Informa-sponsored LTE North America are considered highly competitive in the telecommunications industry. The selection committee comprises delegates of global leading operators, industry analysts and media.
In first half 2011, ZTE won more LTE commercial-use contracts than it had in all of 2010 through leveraging its leading Uni-RAN technology. Further, the company has built a considerable business presence in Europe, the United States and Japan.
To date, ZTE has secured 28 LTE commercial use contracts and has teamed up with more than 90 operators to deploy LTE test networks worldwide. In Hong Kong, ZTE built the world’s first dual-band LTE commercial network; in Sweden, it built the world’s first large-scale LTE FDD/TDD dual-mode commercial network together with Hutchison 3G.
ZTE Unveils World’s First Commercial LTE Micro Base Station [ZTE press release, July 4, 2011]
ZTE’s new LTE BS8920 Micro Base Station is a technological revolution in hotspot coverage and product footprint
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, has launched the ZXSDR BS8920, the world’s smallest commercially available LTE base station. The BS8920 also has the largest capacity of any LTE micro base station at 150Mbps, with 2X10W transmit power and 2T4R modulation for a large footprint, and offers significantly lower TCO due to reduced hardware, power consumption and deployment costs.
The ZXSDR BS8920 micro base station is targeted at the rapidly growing market for urban and indoor hotspot coverage, and can reduce hardware costs by up to 50 percent of distributed base stations. The design of the BS8920 encompasses key features to reduce power consumption to as low as 100W average, with up to 30 percent lower deployment costs in terms of deployment compared to other distributed base stations.
Ms. Li Jian, General Manager of ZTE’s CDMA and LTE Product Line, said, “ZTE invests heavily in research and development for environmentally friendly, low-power solutions that are versatile for operators. We are pleased to debut the BS8920 which we are already demonstrating to customers. This development will allow both end-users and operators to experience excellent coverage and meet demand with ease.”
The BS8920 base station meets industry requirements for an Omni sector eNodeB product, with less than half of the size and weight of a standard remote radio unit (RRU). It also supports all-standard LTE frequency band spectrums, and AC/DC power supply.
The newly released base-station can be widely applied in various complex environments, such as LTE hotspots, blind spots or indoor/outdoor areas, playing an important role in LTE networks and hybrid networks.
As of April 2011, ZTE has signed 18 LTE commercial contracts with operators from around the world, and has deployed 70 trial networks jointly with its partners.
ZTE releases ‘world’s smallest’ LTE base station [TechEye, July 4, 2011]
…
According to Gartner analyst Sylvain Fabreit is important for ZTE to look towards competing with the likes of the “more aggressive” Huawei.
“ZTE is gradually getting more of the LTE market as legacy technologies such as GSM shrink, and could be well placed to perform well.”
“Though it is a smaller chunk of business for ZTE, LTE is clearly the next step, and companies know that they have to be in the LTE game, as for example the 3G market slows down growth.”
“All the players in the market are now positioning themselves.”
While Fabre believes that ZTE could be well equipped to capitalise as the technology slowly gains ground, with Gartner forecast estimating it will account for 3.1 percent of all mobile connection by 2015, the mobile firm will have plenty to do to stay ahead of the competition.
“All of the major companies have been making noise about smaller base station over the past year and a half, as the distinction is increasingly blurring with femtocellsas base stations get smaller.” Fabre explains.
“But we can be sure that ZTE rivals have developments in their own labs already.”
Interview with ZTE Senior Director – Richard Ye [ZTEGlobal, Nov 20, 2011]
At the Mobile Asia Congress 2011 [Nov 16-17, 2011], we interviewed with Richard Ye Lihe, ZTE’s Senior Director of Wireless Product Operation, Product R&D System. Please also visit our twitter and Facebook for more information of ZTE at MACHK. http://www.twitter.com/ZTEPress http://www.facebook.com/ZTECorp
More information on this blog:
– China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that [June 18, 2011] which also includes information about Global TD-LTE Initiative started by China Mobile and other industry heavyweights and now already with 36 member companies
– Good TD-LTE potential for target commercialisation by China Mobile in 2012 [July 13, 2011]: most importantly the TD-LTE trials by China Mobile and details of the offerings from the participant leading infrastructure vendors: Huawei, ZTE, Ericsson (detailed desciption of their strategy + acquisition of divested Nortel assets strategic for Ericsson), Nokia Siemens Networks, and Alcatel-Lucent (with special emphasis on extremely attractive lightRadio and related QorIQ Qonverge SoCs from Freescale quite essential for that)
– China becoming the lead market for mobile Internet in 2012/13 [Dec 1, 2011] which also includes vital information about close TD-LTE cooperation between China Mobile and ClearWire in US, and which will significantly determine the future of TD-LTE not only in North America but elsewhere. Its goal is to “cultivate a robust device ecosystem that supports multi-mode, multi-band devices with minimum component complexity and cost”, and will significantly strengthen the current direction of dual-mode LTE devices. “For Long Term Evolution (LTE) to succeed, it’s ‘absolutely critical” that devices be able to support both the TDD and FDD versions of the next-generation mobile technology, according to GSM Association (GSMA) Director General Anne Bouverot.”
But keep in mind:
ZTE places strong emphasis on the Chinese and Asia/Pacific markets, but is making steady progress toward becoming a bigger international player with some recent international LTE wins.
Strengths
ZTE experienced continued maintained strong financial performance in 2010. It was the only vendor in this space besides Huawei to achieve double-digit revenue growth, it had the best margins in the group and also had a strong cash-flow generation. This all provide evidence of long-term sustainability.
ZTE has several form factors planned for its eNodeB product, including distributed, compact, femtocell and picocell, as well as unified core.
As a stepping stone to gain mind share and market share in North America, ZTE opened an LTE lab in the U.S. to demonstrate, test and interoperate with CSPs in 2009. It has also been working toward becoming more visible in the Middle East and Africa.
Cautions
While the company is working toward emerging from China to gain more contracts and a bigger footprint in international markets, it still lacks significant presence and mind share outside its home country. But it may have difficulty competing against stronger players in the market.
ZTE’s activity remains heavily weighted toward legacy technologies such as GSM and CDMA.
From: Magic Quadrant for LTE Network Infrastructure [Gartner, May 26, 2011]
As of May 2011, Huawei has deployed over 100 SingleRAN commercial networks, which are capable of evolving into LTE, and of those that have deployed SingleRAN networks, more than 40 operators have announced the launch or the imminent launch of distinct LTE services. Huawei won the “Significant Progress for a Commercial Launch of LTE by a Vendor” award at the LTE Summit 2011, which recognized Huawei’s endeavors and achievements in the commercial rollout of LTE.
Huawei’s SingleRAN 5-Band 3-Mode 1-Cabinet solution (BTS 3900L), which won the “Best LTE Network Elements” award, leverages a sole cabinet to support up to three technologies across five frequency bands, allowing for the coexistence and interoperability of GSM/UMTS/LTE networks to make true convergence a reality and to minimize costs for operators. This solution has been selected by leading operators worldwide, including Vodafone Germany and TeliaSonera Norway, to replace their outdated legacy base stations while simultaneously initiating their LTE network deployment.
From: Huawei Wins Two Awards at LTE World Summit 2011 [Huawei press release, May 17, 2011]
Since 2010, Huawei continues to rank No. 1 for contributions to LTE standards according to ABI Research. According to the latest Evolution to LTE Report released in September 2011 by GSA (the Global mobile Supplier Association), there are 35 commercial LTE networks launched globally and 18 of them are using Huawei’s SingleRANLTE solution.
From: Huawei Wins Two Awards for Contribution to LTE R&D and Standards [Huawei press release, Nov 17, 2011]
Huawei, a leading global information and communications technology (ICT) provider, today announced its Small Cell solution recently won the award for “Best new network infrastructure solution” at 4G World 2011 in Chicago, Illinois. The win affirms Huawei’s Small Cell solution has become the market leader, and has gained high recognition by the industry in the wireless broadband area.
… Based on a deep analysis of wireless networks, Huawei launched its innovative Small Cell solution which can deploy a precise layered network based on actual traffic distribution, offering seamless coverage in hot and blind spots to improve network capacity. This enables operators to protect network investment and decrease total cost of ownership through easy site acquisition, fast deployment, green design, multi-mode convergence and smooth evolution to LTE-Advanced.
… As of Q3 2011, there are 31 Small Cell commercial networks worldwide, and 14 of them are deployed by Huawei. Huawei ranks No.1 in market share.
From: Huawei’s Small Cell Solution Wins Award for “Best New Network Infrastructure Solution” at 4G World [Huawei press release, Nov 7, 2011]
More information on this blog:
– ICT Top-100 in Mainland China and the #1 Huawei [June 4, 2011]
Important Basic Concepts needed for understanding any further information:
ZTE SDR [ZTE video, Jan 1, 2009]
Software Defined Radio (SDR)
Software Defined Radio (SDR) is a term adopted by the international Software Defined Radio Forum (SDRF) to describe radios that provides software control of a variety of modulation techniques, wide-band or narrow-band operation, communications security functions (such as hopping), and waveform requirements of current and evolving standards over a broad frequency range. This technology uses a generic hardware platform to accommodate different communications standards, frequencies and modulation schemes via software modules. A wide range of radio applications like Bluetooth, WLAN, CDMA, GMS, WCDMA and WiMAX can be implemented using SDR technology.
SDR is a cost-effective and perfect solution for 2G/3G network integration and future HSPA+ and LTE evolvement. Using SDR, hardware resources can be shared and base stations need only a software adjustment to handle a new standard, saving considerable expense.
Excerpt from: SDR Creates Possibility of Smooth Upgrade [ZTE article, March 24, 2008]
Radio Access Network (RAN)
In September 2008, ZTE a global leader in end-to-end telecommunications solutions won the InfoVision award in the New Product Innovation category during the Broadband World Forum (BBWF) Europe 2008 in Brussels, Belgium, for developing and pioneering SDR solution in the global telecom industry (see Figure 1).
SDR is an innovation that seeks to unify the Radio Access Network (RAN), allowing simultaneous multimode operation on the same base station. Conventionally each technology standard has its own radio access network, which means that operators who are changing their networks to new technology standards have to deploy different RANs for each technology platform, as shown in Figure 2.
With SDR mobile operators can use both 2G and 3G networks simultaneously or seamless evolve their networks from 2G to 3G without the need of deploying a separate RAN for each service. By means of simple software configuration, operators can choose which mode or mix of modes amongst GSM, UMTS, WIMAX, CDMA2000 and TD-SCDMA to run in a base station. Figure 3 illustrates the concept of SDR with both GSM and UMTS services unified into a single RAN.
This concept has many practical applications, for example, considering that nearly all GSM operators adopt UMTS as their 3G choice, SDR offers the best solution for this upgrade without any swapping of hardware. Its compatibility with migration to technologies beyond 3G or IMT-Advanced technologies like Long Term Evolution (LTE) again ensures smooth upgrade without any network replanning.
As a state-of-the-art technology platform, SDR brings to the operators the benefit of All IP orientation. Its interfaces support packet based transmission like Fast Ethernet (FE) and Gigabit Ethernet (GE) as well as the legacy Time Division Multiplexing (TDM) like STM-1, E1, and ATM virtual circuits to ensure forward and backward compatibility in transport.
The architecture of base station is also distributed into Base Band Unit (BBU) and Remote Radio Unit (RRU) to ensure extended coverage with enhanced throughput, small size to facilitate easier and flexible roll out of networks and greater cost efficiencies in power consumption and transmission. SDR thus provides the best opportunity ever for operators to wholly evolve their networks smoothly with full investment protection and lowest Total Cost of Ownership (TCO), and it also enables deployment of green networks especially in these days of greater environmental concerns.
Together with IP technology SDR will define the world’s truly unified future proof networks. This technology innovation brings immense opportunities to the mobile industry, and like in the 1980s when forward looking operators leapfrogged their pessimistic counterparts through quick adoption of digital systems, SDR technologies will have their advantage too, and those operators who will harvest from its R&D will obviously have an advantage over the rest in the market.
Excerpt from: SDR: Building Future Proof Unified Networks [ZTE article, March 12, 2009]
Distributed BBU+RRU
ZTE first proposed the distributed BTS [Base Transceiver Station] solution in the telecom industry. Unlike the traditional centralized BTS, the distributed BTS physically separates its baseband unit and radio frequency (RF) unit and connects them via the standard baseband/RF interface (e.g., Common Public Radio Interface/Open Base Station Architecture Initiative, or CPRI/OBSAI). As shown in Figure 1, the baseband unit and the RF unit of the traditional BTS are separated into two independent function modules in the distributed BTS: Base Band Unit (BBU) and Remote RF Unit (RRU).
The RRU of distributed BTS integrates three RF units of traditional BTS: Transceiver and Receiver (TRX), Power Amplifier (PA) and RF Front End (RFE). With a protective enclosure that meets the IP55 standard, the RRU can be directly installed in an outdoor environment and in several modes: on a pole, on a wall, on a tower or in an integrated cabinet. Therefore, no equipment room space is required.
Being highly integrated, the BBU supports the same capacity as the baseband unit of traditional BTS but is much smaller. In an indoor environment, it can be installed on a wall or on an existing rack; thus, no extra indoor space is occupied. In an outdoor environment, it can be easily placed into the power supply cabinet or transmission cabinet of the BTS.
The distributed BTS is suitable for various installation scenarios as shown in Figure 2. If the equipment room has space constraints, the BBU can be installed in the equipment room, while the RRU is installed outdoors together with the antenna. In case the indoor installation space is not available, the BBU can be installed in the outdoor accessory cabinet, where the accessory equipment such as power supply, battery and transmission are placed, and the RRU can be directly installed outdoors, either with the antenna or in an integrated BBU & RRU cabinet. This integrated cabinet and the accessory cabinet can be installed on the ground or on top of the building; consequently, no indoor space is required. In the case of indoor coverage, the BBU can be installed in the basement or corridor, while the RRU can be mounted on the wall of the storey to be covered.
To support a smooth evolution in the future, ZTE adopts the Soft Defined Radio (SDR) technology in its distributed BTS, called distributed soft BTS. With this technology, the BTS can be applied in a 4G network by only upgrading the software or replacing some baseband boards. ZTE’s distributed soft BTS has the following attractions:
- Real SDR technology supports hardware of different standards, maximally protecting operators’ investment.
The BBU can support different standards such as CDMA, WCDMA, GSM, WiMAX, UMB and LTE by installing the related software. But the Channel Processing Module (CHM) board has to be replaced for other standards only when special chips are used on the board (at present, only the CDMA system uses special chips, i.e., Application-specific Integrated Circuit, or ASIC). As to the RRU, if the frequency band remains unchanged, it is only necessary to install the related software when supporting a different standard.- A variety of BBU/RRU products deliver full coverage solutions, meeting operators’ various requirements for network construction.
The RRU products with different power specifications, such as 60 W, 40 W and 5 W, are available, and they can meet the coverage needs in urban dense areas, suburbs and countryside. Moreover, the 200 mW pico RRU can be applied for indoor coverage.- BBU/RRU products feature high integration, large capacity, small size and light weight, making easy installation and maintenance while reducing operators’ CAPEX.
With the standard 2U height design, the BBU can support a capacity of 36 carrier-sectors for the CDMA2000 1X or EV-DO system. The RRU, which is 16.5 kg in weight and has a dimension of 380 × 330.2 × 152.4 mm (H × W × D), can support a maximum capacity of 6 CDMA2000 1X or EV-DO carriers and a maximum transmit power of 60 W at the cabinet top. Both the BBU and RRU provide the highest integration among the like products in the industry.
Excerpt from: ZTE’s Distributed Soft BTS Solution [ZTE article, March 24, 2008]
Branding:
[Jan 9, 2009] With many years of experiences in wireless technologies, ZTE launches OneNetwork solution including unified RAN based on SDR technology, unified all-IP core network and unified OMC [Operation & Maintenance Center] platform.
… The unified all-IP core network based on the ATCA architecture separates transmission from services and enables large-capacity transmission for mobile networks. …
[Oct 10, 2009] ZTE Opens LTE Laboratory in North America … This CDMA/LTE dual-mode laboratory is based on the Uni-RAN solution on ZTE unified Software Defined Radio (SDR) platform …
The reason for dropping the OneNetwork brand and starting to use the new Uni-RAN for a subsystem of OneNetwork is quite probably because the OneNetwork trademark had already been registered by an Australian SME company now belonging to a somewhat larger group with ~200 employees: Anittel Group Ltd.
For us this whole affair is just important for the reason that ZTE decided to use a brandname just for its RAN solution and did not try to introduce another name for the whole. This shows that the Uni-RAN solution is indeed a strategic differentiator for ZTE.
The Details of the Approach Taken by ZTE:
ZTE Technologies magazine, Feb 2011 issue [PDF] ”Tech Forum”: Business Opportunities in TD-LTE [Jan 17, 2011]
Abundant Spectrum Resources
Growth in mobile data traffic has brought new profit to mobile operators across the world. Statistics show that data revenue of Verizon, AT&T, T-Mobile, Vodafone and other mainstream operators has increased by an average of 30%. Therefore, much attention is now being focused on data and broadband services. Obtaining more spectrum resources and increasing spectrum efficiency has become of great importance.
Spectrum resources for Time Division Duplex (TDD) are abundant. 2.3GHz and 2.6GHz are the most common TD spectrum bands for TD-LTE, but most of these bands are not being used. TDD spectrum resources are available in many countries and available for many operators. Of the 300 operators who have TDD spectrum resources, 66% own 2.3GHz and 2.6GHz bands.
Promising Market Opportunities
TD-LTE is attracting leading operators around the world. Many of the top 500 telecom operators own a chunk of TDD spectrum and are vigorously pushing forward TD-LTE development.
China Mobile owns 2.3GHz and 2.6GHz TDD bands and is leading in the promotion of TD-LTE. After completing the fourth phase of its TD-SCDMA network construction, China Mobile will boast the world’s largest 3G network with 220,000 TD base stations by Q1 2011. The operator will call for bids on the evolution of its TD-SCDMA networks in the first half of 2011. Its commercial TD-LTE network is expected to be deployed in one to two years.
Mainstream European operators Vodafone, Deutsche Telekom, KPN, and O2 have all acquired TDD spectrum and are actively researching TD-LTE technologies and application models. Deutsche Telekom completed its trial TD-LTE network in the second half of 2010 and has started testing the network.
In June 2010, Qualcomm won India’s 2.3GHz Broadband Wireless Access (BWA) spectrum auction for TDD development in four regions of the country. Qualcomm has promised to set up a joint venture to build an LTE network. This demonstrates that Qualcomm has TD-LTE in its strategic plan.
Mobile operators in the U.S. including AT&T, Verizon, and America Mobil have promised to support TD-LTE. Leading operators in Japan and Korea have also played an active role in promoting TD-LTE. Other operators with WiMAX, PHS (1900-1920MHz), and TD-SCDMA will also choose TD-LTE as their migration path.
TDD spectrum is easy to acquire, and there is less competitive pressure in acquiring it. The price of TDD spectrum in each country is much lower than that of FDD spectrum. Because FDD spectrum is very limited and expensive, more and more operators are considering TDD for feature-rich data services and hotspot area coverage.
Using time division technique, TD-LTE allows flexible timeslot allocation in the downlink and uplink. This meets both voice and asymmetric data needs and greatly increases spectrum efficiency. TD-LTE can share the same core network with an FDD system and can support flexible networking. It can serve as an independent network for hotspots and blind area coverage or as a supplement to the FDD system for data services. LD-LTE has promising and widespread applications.
Fast-Growing TD-LTE Industry
Driven by operators, standardization organizations, equipment vendors, and chipset makers around the world, the TD-LTE industry is growing rapidly. Members of the Next Generation Mobile Networks (NGMN) Alliance include China Mobile, NTT DoCoMo, Vodafone Orange, T-Mobile, AT&T, as well as 29 mobile network and terminal suppliers including Ericsson, Nokia, Samsung, and ZTE. Together these companies are actively promoting standardization of TD-LTE. So far, 3GPP R9 specifications have been completed, and the standardization progress of TD-LTE has kept pace with that of LTE FDD. Testing of TD-LTE technology and networking organized by the LTE/SAE Trial Initiatives (LSTI) was first conducted by China Mobile and has produced favorable results.
The TD-LTE industry chain has been established and is growing fast. It comprises chipset providers, terminal providers, infrastructure equipment manufacturers, and testing instrument providers.
All chipset providers plan to launch 3G/LTE multimode chipsets in early 2011. The development of LTE chipsets drives the development of terminal products. Nokia, Samsung, LG, Motorola, ZTE, and Shanghai Bell will unveil a number of LTE terminals in 2011. LTE TDD/FDD dual-mode terminals will be the mainstream offerings, and this will further promote the flexible deployment of TD-LTE.
Equipment manufacturers Ericsson, Nokia-Siemens, Alcatel-Lucent, ZTE, and Huawei have all developed TD-LTE series equipment that can be applied in different scenarios. These products have been tested in the TD-LTE trial networks of China Mobile and overseas operators. Presently, they support 2.3GHz and 2.6GHz bands and will support 1.9GHz and 2.1GHz bands in the future.
Test instrument manufacturer Anritsu has announced its MT8820C will support TD-LTE radio testing. Rohde & Schwarz and Anite also provide many types of testing and measuring equipment.
As the industry chain matures, commercial TD-LTE is just around the corner.
ZTE Leads the TD-LTE Industry
Smooth evolution
ZTE provides a Uni-RAN solution based on an innovative SDR [Software Defined Radio] hardware platform. The Remote Radio Unit (RRU) supports 700MHz, DD spectrum, 900MHz, 1800MHz, AWS, 2.1GHz, and 2.6GHz bands. The Base Band Unit (BBU) supports GSM, UMTS, and LTE radio modes, which allows for fast network deployment. The Uni-RAN solution enables smooth network evolution while protecting investment to the greatest possible extent. This helps operators significantly reduce their TCO.
Large-capacity base stations
ZTE’s single BBU supports up to 18 TD-LTE cells, each having a bandwidth of 20MHz. The maximum throughput per cell is 100Mbps in the downlink and 50Mbps in the uplink, and the RRU provides power output of up to 2×20W. The RRU also supports multiple modes for different coverage scenarios. Both IP over E1 and IP over PE/GE are supported. Flexible networking and good scalability helps operators cut their network construction costs.
Compact and eco-friendly design
ZTE’s distributed BBU+RRUenables simple and flexible zero-footprint deployment. The BBU is the smallest in the industry and can be mounted on the wall or embedded in a 19-inch rack to save space. The RRU is small and lightweight. It is naturally cooled, silent, and saves power.
End-to-end full-service solution
ZTE is dedicated to offering TD-LTE products that meet various deployment scenarios. Its end-to-end, customized, full-service solution encompasses services, core networks, radio systems, and terminals.
Worldwide deployments
With fast growth of the industry chain, TD-LTE trial networks have been deployed in China, Japan, India, Russia, Germany, Ireland, and the U.S. As of October 2010, ZTE has signed agreements with ten leading operators to build TD LTE trial networks. ZTE is leading the industry in TD-LTE deployment worldwide.
- China Mobile started TD-LTE tests involving an indoor system, terminal chipset, and large-scale outdoor network at the end of 2008. It plans to initiate TD-LTE trials in Shanghai, Guangzhou, Shenzhen, Nanjing, Hangzhou, and Xiamen in early 2011. A total of 3000 TD-LTE base stations will be deployed, and ZTE will be one of the main vendors for the network deployment.
- ZTE was chosen by Europe’s largest mobile operator to supply TDD equipment for TD-LTE field testing in February 2010. Phase I of testing was completed in July and produced good results. Phase II and III are expected to be completed in the first half of 2011.
- India issued two BWA licenses in August 2010, and ZTE entered into an agreement with major local operators to help them build several TD-LTE trial networks across the country.
- In September 2010, ZTE cooperated with Russia’s largest integrated network operator to deploy a 2.3GHz TD-LTE trial network in Sochi. ZTE demonstrated a peak data rate of 130Mbps and won high praise from Russian leader Vladimir Putin.
Conclusion
The abundant spectrum resources, technical advantages, and flexible networking features of TD-LTE may translate into great market opportunities. As the industry chain matures, TD-LTE has promising commercial prospects. ZTE was one of the earliest players in the TD-LTE field and has an industry-leading outlook. With its visionary outlook and years of TDD experience, ZTE is developing excellent TD-LTE concepts and solutions. The company is working together with operators worldwide to create higher value and to seize upon new market opportunities.
Hi3G Is Poised to Lead the LTE TDD/FDD Convergent Era [ZTE use case, May 20, 2011] —ZTE helps Hi3G to build the world’s first LTE TDD/FDD dual-mode commercial network
The world has witnessed the remarkable achievements made by the European telecommunications industry. Up to now, the European operators have won half the seats among global high-end operators. Europe is usually the pioneer in adopting new technologies and businesses.
Hi3G is ranked the fourth in the market share in Sweden and Denmark. At present, its competitors have deployed LTE networks in the Nordic market, which cause great impact on the 3G development of Hi3G. Therefore, it is very imperative for Hi3G to launch LTE.
While manyhigh-endoperators adopt the traditionalFDD mode, Hi3G believes that after FDD and TDD standards converge, TDD will not only help build a network with the same quality as FDD, but also have cost advantages, for example in spectral resource. Therefore, building TDD/FDD LTE dual-mode networks is the best choice for operators. In addition, with only 2 x 10MHz in 2.6GHz band awarded for FDD in both Sweden and Denmark, Hi3G will not be able to provide competitive data throughput in hotspots. Fortunately, the use of TDD/FDD LTE hybrid networking can provide high-rate services and take advantage of the existing spectral resource according to the service type.
In Sep 2010, Hi3G issued tender documents, requiring all vendors to provide an LTE TDD/FDD dual-mode networking solution. In this solution, interoperability between TDD/FDD LTE and Hi3G’s existing UMTS should be implemented. Moreover, the FDD LTE network should provide wide coverage, both TDD and FDD should be applied in the same hotspots, and later, the TDD LTE network should be further expanded in hotspots. Last, the entire convergent network must be completed within three months from equipment delivery to installation and commissioning.
Figure 1 Application Scenario of TDD/FDD Multi-Mode, Multi-Frequency Networking
At the early stage of bidding, Hi3G selected two suppliers to roll out LTE in Sweden and Denmark. As the project proceeded, ZTE finally stood out in the competition by virtue of its advanced LTE TDD/FDD dual-mode solution, multi-mode SDR platform, diversified BS forms, customized transmission solutions, leading multi-mode terminals, powerful delivery and logistics. In March 2011, Hi3G selected ZTE as the exclusive vendor to deploy LTE.
While meeting the requirements for interoperability and load balancing between hi3G’s existing 3G network and LTE network, the TDD LTE/FDD LTE/UMTS multi-mode convergent networking solution provided by ZTE effectively improved system security and stability, and hence ensured the network throughput in hotspots. By sharing the existing resources including BBU, antenna, GPS, transmission, OMC and EPC, the LTE TDD/FDD dual-mode convergent network not only helped Hi3G to reduce site investment and network maintenance cost, but also accelerated the network construct speed.
Figure 2 Topology of LTE TDD/FDD Dual-mode Networking
Specific to the system interference concern caused by co-site of TDD LTE, FDD LTE and UMTS networks, ZTE offered a co-antenna solution, which won high recognition from Hi3G. In this solution, ZTE adopted 2-path broadband antennas to effectively relieve interference of TDD LTE to FDD LTE through antenna isolation and customized combiners.
Figure 3 ZTE’s Co-Antenna Solution (Applied in Sweden)
It is known that hotspots have high requirements for network throughput. Besides, Hi3G has limited site resource and hoped to make use of the existing UMTS network site. Moreover, the winter temperature is very low in Sweden and Denmark. Therefore, very high requirements are put on the base stations in terms of capacity, size, installation flexibility and performance. In response to that, ZTE provided diversified LTE base stationsto completely satisfy the customer’s site requirements with good performance even at the temperature of 40° below 0. In this project, by adopting different combinations of ZTE’s FDD/TDD dual-mode SDR base stations, small-capacity outdoor BBU cabinet, large-scale outdoor cabinet and outdoor distributed base stations, the eNodeB system can be conveniently installed indoors, outdoors, mounted on a tower, under a tower or even installed with no equipment room. As a result, the eNodeB removed the need for extra civil engineering expenditure, decreased the engineering installation difficulty, and hence accelerated network construction for Hi3G.
As a global pioneer in 3G, Hi3G is of course unwilling to lag behind in the field of 4G network operation. For operators, failure to put a network into commercial use on time not only leads to a tremendous loss of revenue, but also runs the risk of lagging behind the competitors. By providing diversified terminals and rapid network construction, ZTE can help Hi3G to achieve fast commercialization of LTE.
On the terminal side, ZTE launched the world’s first Qualcomm chipset based data cards. By supporting 3G, TDD LTE and FDD LTE systems simultaneously, these data cards will help Hi3G to commercialize its LTE network rapidly in terms of business model.
On the engineering delivery side, aimed at “global leader in delivery”, ZTE has set up professional project management processes and teams from site acquisition to civil engineering, equipment installation and equipment room maintenance. Hi3G was very satisfied with ZTE’s standardized project operation and high-quality delivery.
Peder Ramel, CEO at Hi3G, said, “We have chosen ZTE for additional 3G 900/2100 rollout and for LTE mobile broadband networks in Sweden and Denmark because of the possibility to house three different mobile standards in the same physical infrastructure and the low cost of ownership. Furthermore, ZTE advanced LTE dual-mode solutions and quick consignment responses really meet our requirements.”
[The company was founded in 2001 and is based in Stockholm, Sweden. Hi3G Access AB operates as a subsidiary of Hutchison Whampoa Ltd. of Hong Kong. The HWL as an international corporation reported turnover of approximately HKD326 billion (USD42 billion) and HKD187 billion (USD24 billion) for the year ended 31 December 2010 and for the six months ended 30 June 2011. HWL is the world’s leading port investor, developer and operator, the world’s leading health and beauty retailer, one of Asia’s largest retailers, and a pioneer of mobile multimedia communications with the launch of third-generation (3G) mobile phones and networks under the “3” brand meaning 3G service.
From wikipedia: In Sweden the mobile network is shared with Telenor, except for cities like Stockholm, Gothenburg, Malmo, Lund and Karlskrona where they handles their own 3G networks, but this practise is not allowed in Denmark. In the spring 2011 3 started, without Telenor, to build their own 3G Network on the UMTS 900-band which will give a bigger coverage. 3Sweden is the only operator in Sweden that have the licence to build 3G at the UMTS900 band. Today 3 Sweden covers about 98.5% of the swedish population. … 3Sweden is for the fifth year in a row the best operator for Mobile Broadband and has the best 3G-coverage in Sweden.
3 in Sweden is 60% owned by Hutchison Whampoa and 40% by Swedish Investor AB, founded and still controlled by the Wallenberg family and having SEK 181 billion (US$ 26.3 billion at current rate) investment in the end of 2010. 3 in Sweden is not even the core investment of Investor AB for which such names as Atlas Copco (16.7%), SEB (20.8%), ABB (7.3%, AstraZeneca (3.7%), ERicsson (5%), Electrolux (13.6%), Husquarna (15.7%) and Saab (30%) were the core ones.]
E-Plus and ZTE Strengthen Partnership [ZTE press release, Sept 13, 2011]
Senior executives meet in Berlin to confirm expansion of mobile devices portfolio in the German market
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly listed global provider of telecommunications equipment and network solutions, will today meet with senior executives from the E-Plus Group, at the BASE media meeting in Berlin, to confirm the expansion of its mobile devices’ portfolio in the German market.
Since 2010, ZTE and E-Plus, one of the largest operators on the German mobile telecommunications market, have been collaborating on the expansion of E-Plus’ broadband network. Following the successful launch of the ‘BASE Lutea’ smartphone and the ‘BASE Tab’ in the German market, E-Plus will introduce mobile devices designed by ZTEto enable subscribers to take advantage of the data services offered by its advanced mobile data network.
“Our partnership with ZTE has seen an impressive level of commitment from the entire team, helping us to push our services forward and expand our data network,” said Thorsten Dirks, CEO of E-Plus Group. “Due to the rapid implementation of ZTE’s 3G network technology, E-Plus and KPN have been able to offer broadband network services to more than 500,000 subscribers each week. The basic service provision required for each subscriber is constantly evolving in response to the mobile data services offered over the HSPA+ network. By expanding our partnership, E-Plus customers will enjoy further benefits from the advanced devices and network services offered.”
“ZTE continuously strives to provide high quality products and excellent services, and aims to become E-Plus’ most reliable and long-term partner,” said Shi Lirong, President and CEO of ZTE Corporation. “Through our focus on convergence, innovation and green technology, we aim to provide E-Plus and KPN with the most technologically advanced and economically valuable solutions. We are proud and honoured to be chosen as a strategic partner by E-Plus and KPN.”
The BASE media meeting will see over 500 top decision-makers from media, economics, politics as well as personalities from the worlds of sport, art and culture come together to celebrate the successful partnership between the two companies.
About the E-Plus Group
The E-Plus Group is the challenger on the German mobile communications market. Simple services tailored to customer needs and a major reduction in call and data charges can be traced back to the initiative of the third-largest mobile network operator in Germany. Having revolutionised the voice market for larger user groups, the company is now opening the mobile data market to the masses by means of its massive network roll-out and highly attractive low-priced data tariff schemes. As a result of innovative business models, modern structures and strong partnerships, the E-Plus Group was able to significantly strengthen its market position and develop more dynamically and profitably than the market. Since 2005, E-Plus Mobilfunk GmbH und Co. KG has developed into a family of brands offering target-group-specific services and is thus breaking new ground in mobile communications in Germany. The flat-rate brand BASE and the mobile discounters simyo and blau are market leaders in their segments, while the original E-Plus brand offers a range of services to its existing customers. The brand AY YILDIZ is aimed at the Turkish community in Germany. Vybemobile is intended to appeal to young music lovers. The partners of the E-Plus Group include many other brands, such as MEDIONmobile (ALDI TALK) and music TV station MTV. More than 21.5 million customers are using the network of the E-Plus Group to make calls and send text messages or data. The Group generates an annual revenue of €3.2 billion (2010) and employs more than 2,650 people (FTE) in Germany.
Partners ZTE and KPN Mobile International announce LTE Trials [ZTE press release, Feb 17, 2011]
ZTE and KPN today announced a joint development programme focussed on the application of LTE technology in Germany and Belgium. KPN Mobile International and ZTE have scheduled a field trial program for 2011 to investigate the capabilities of ZTE’s commercial equipment. The co-operation gives KPN the flexibility to speedily upgrade its network equipment to LTE in the future, if demand is there.
The 2010 spectrum auction in Germany put LTE network technology firmly on the agenda and gave KPN the opportunityto further enhance its competitiveness in the market.
“ZTE is a telecommunications equipment market challenger in Europe, very much in line with E-Plus’ and KPN Group Belgium’s development strategy,” said KPN Mobile International CTO Erik Hoving. “This agreement further strengthens our cooperation in the telecommunications market. It has strategic significance for both KPN and ZTE in Europe, and also in terms of each company’s international market position.”
“We appreciate that KPN selected ZTE as a strategic partner and we are strongly focussed on the long-term partnership between our companies,” said Shi Lirong, President and CEO of ZTE Corporation. “We support KPN with world-class telecom technologies and effective solutions with the lowest total cost of ownership in the industry to build high-speed networks. ZTE’s advanced and future-proof SDR technologyhelps KPN optimise its operation efficiency to meet increasing demands and develop value-added services for their customers.”
In December 2009, ZTE and KPN announced plans to conduct a comprehensive expansion of HSPA networks in Germany and Belgium starting in 2010. The programme was designed to establish a strategic partnership between the two companies for the development of future-proof networks in Belgium and Germany.
Under the agreement, ZTE has started a program to help transform KPN networks in Germany and Belgiumover a three year period using ZTE’s SDR (Software Defined Radio) technology to provide users with HSPA + high-speed data services which enable cost-effective mobile broadband communications.
As a result of the seamless transformation from the existing network to the new one, KPN will be able to offer its customers in Belgium and Germany faster high-speed data services of upto 21.6 Mbps, enabling the operator to offer new mobile broadband services.
The initial agreement between ZTE and KPN involved the provision of access network technology, but has extended to cover end-to-end solutions including core network and wireless access technologies and Android handsets. The packet-based core network equipment deployed in Germany is now in commercial use, and can be easily upgraded to future technologies. More recently ZTE delivered the co-branded Lutea smartphoneto KPN’s E-Plus in Germany and KPN Group Belgium in December 2010.
During the year 2010, ZTE established a new company in Belgium, and opened a new office in Düsseldorf dedicated to the KPN transformation project as well as several new regional offices in Germany. In addition, ZTE also set up a customer Training Center in Germany and a 24/7 help deskto provide local support to KPN. By consistently delivering on its commitments, the company has proved its ability to deliver at the high level expected by European operators. To better support KPN, ZTE has created a diverse team consisting of technical experts from China and Europe.
About KPN
KPN is the leading telecommunications and ICT service provider in the Netherlands, offering wireline and wireless telephony, internet and TV to consumers and end-to-end telecom and ICT services to business customers. KPN’s subsidiary Getronics operates a global ICT services company with a market leading position in the Benelux, offering end-to-end solutions in infrastructure and network-related IT. Getronics manages 2.2 million workspaces. In Germany and Belgium, KPN pursues a Challenger strategy in its wireless operations and holds number three market positions through E-Plus and BASE. In Spain and France, KPN offers wireless services as an MVNO [mobile virtual network operator] through its own brands and through partner brands. KPN provides wholesale network services to third parties and operates an efficient IP-based infrastructure with global scale in international wholesale through iBasis.
The E-Plus Group, China Mobile and ZTE collaborate for TD-LTE field trial in Germany [partner news on NGMN site, Feb 11, 2011]
The E-Plus Group will launch a TD-LTE field trial in Germany in Q1 2011. The trial is based on 2.6 GHz spectrum that E-Plus acquired in the German spectrum auction. China Mobile, with its leading position and rich experience in the operation and maintenance of TDD networks, will provide technical support to this trial. ZTE will provide base stations developed on the advanced SDR platform and co-siting solution of LTE FDD/TD-LTE, which is a breakthrough in the industry.
The E-Plus Group is the third largest mobile network operator in Germany. The E-Plus Group has been one of the most innovative mobile operators during years. After revolutionizing the mobile voice market for larger user groups E-Plus is now opening the mobile data market for the masses with low-priced data tariff schemes and the roll-out of a HSPA+ network with speeds up to 21.6 Mbps. On top of the high speed mobile data network roll out, E-Plus will now test TD-LTE in the field. The E-Plus Group is one of the founding members of the Next Generation Mobile Networks (NGMN) Alliance.
The E-Plus Group and ZTE agreed and scheduled a field trial program for 2011 consisting of several streams to investigate the capabilities of ZTE’s commercial SDR equipment and best utilisation of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.
China Mobile claims the largest number of mobile subscribers in the world. From TD-SCDMA to TD-LTE, China Mobile is devoted to promoting TDD industry being equipped with rich experience in TDD network deployment. Furthermore, China Mobile is pro-active in TDD technology globalization and convergence of TD-LTE and LTE FDD industry by seeking cooperation with overseas operators in Europe, Asia, America and Australia.
With joint effort of the E-Plus Group, China Mobile and ZTE, this trial will not only demonstrate the latest progress of TD-LTE/LTE FDD convergence in standards and industry development, but also lay an excellent ground for the full commercialization of TD-LTE.
ZTE Technologies magazine, Oct 2011 issue [PDF, Sept 9, 2011]:
Special topic “Mobile Network Modernization”
3G LTE – Bringing you closer: Now working seamlessly together
Taking a large step forward can be daunting. This is why we have based our LTE solutions on mature hardware designs for SDR centralized platforms – a field in which we already leading global suppliers – and created systems that allow fro truely seamless upgrades and, above all, super smoth performance. We also customize everything down to the last detail and proviode superior after-sales service so that you can be sure of receiving and replying on a solution that is perfect fit for your unique needs. This way, a huge step doesn’t have to feel quite so big.
Begin at www.zte.com.cn
ZTE Technologies magazine, Oct 2011 issue [PDF, Sept 9, 2011]
“Success Story”: Cell C Striving Towards Leadership [Sept 19, 2011]
…
Why would a South African company choose a Chinese company to teach it how to fight and ascend to the top?
ZTE was the first promoter of SDR technology in the telecommunications industry, and in recent years, it has achieved global success with its Uni-RAN solution based on SDR. Its SDR series base stations can be smoothly evolved from GSM to UMTS and even to LTE. Only software upgrades and minimal hardware changes are necessary, and this is very appealing to operators all over the world. It is especially appealing to operators like Cell C who face the challenges of shrinking capital investment and slow-growing revenue. Since ZTE sold its first SDR base stations in 2008, more than 500,000 units have been deployed worldwide and serve more than 120 operators. These numbers prove that ZTE is the partner of choice.
ZTE’s very substantial global experience and advanced SDR technology are the reasons why the Chinese vendor was chosen to teach Cell C how to fight.
Also, by brokering a deal with the China Development Bank, ZTE has secured funding of more than 2 billion rand and has helped Cell C reduce its considerable debt. Two billion rand is so powerful that Cell C now has enough firepower to clear its path to the top of the South African telecom market.
In 2010, the Cell C network was baptized by the World Cup. A huge number of subscribers joined the Cell C network. Almost everyone in the stadium wanted to send messages to their friends and share the electric atmosphere of live football. The Cell C network had to deal with a huge influx of traffic. Supported by ZTE engineers, the Cell C network performed well and more than passed the test.
ZTE Technologies magazine, Oct 2011 issue [PDF, Sept 9, 2011]
“Success Story”: E-Plus Group Focuses on Future Technologies Made by ZTE [Sept 19, 2011]
ZTE has signed partnership agreement with E-Plus Group and KPN Belgium. Under this agreement, ZTE will help E-Plus expand its mobile network to 4G HSPA+. ZTE is also supporting E-Plus Group to implement the LTE standard.
“The coming years will bring massive changes in the use of mobile devices. Besides voice and SMS, more and more people will make use of the Internet. Mobile browsing with a smartphone has developed dynamically into a mass market.”
Gerhard Lüdtke, access network director at E-Plus Group, believes there is good reason to invest heavily in the development of data networks. “We expect a massive increase in data volume on the networks. To absorb this, we need competent partners who can assist us to expand our networks with mature technology. ZTE is one of those partners.” KPN, the Dutch parent company of E-Plus, has been in contact with ZTE since 2005—when ZTE was its supplier of UMTS data cards.
In December 2009, E-Plus and KPN Belgium agreed to take advantage of ZTE’s HSPA+ technology to extensively expand their data network. “In the largest network expansion initiative in our history, we are making big steps every month on the road to becoming a 4G mobile operator,” said Luedtke. “This will benefit our customers who use the Internet via their mobile phones. User experience is critical; our customers demand smooth and reliable surfing.” In the second step, the new LTE standard will be introduced. Since March 2011, ZTE and E-Plus have been conducting tests on three frequency bands.
“The priority for us is the expansion of the data network with HSPA+. HSPA+ devices are available in sufficient quantities and at good prices. This is not the case with LTE,” said Matthew Geller, procurement manager at E-Plus.
Rapid Implementation
In December 2009, the contract for the expansion of the E-Plus data networks had barely been signed when ZTE began work on the project. First, ZTE installed the entire project infrastructure, setting up a team of technicians and engineers (local and Chinese) as well as a training center. ZTE trainers taught service companies, contractors, and employees working with E-Plus how to deal with the new systems. In mid March 2010, initial tests were carried out on the new system, and the results were successful.
Then there was a flurry of events. At the end of April, ZTE handed the network operator the first node B site ready for use. In June 2010, a customer help desk was set up. The help desk provides 24/7 service and guarantees short response times. That same month, interoperability tests were completed. ZTE equipment was installed on existing stations and had to be compatible with existing material. At the end of June, ZTE, Alcatel Lucent, and E-Plus signed service contracts for maintenance of the networks.
Always Close to the Customer
At the same time, ZTE set up a new project office next to the E-Plus headquarters in Düsseldorf. ZTE established regional offices to coordinate on-site activities and to support E-Plus project managers all over Germany. Regional offices are located in Munich, Berlin, Hanover and Frankfurt. This shows how important the business customer focus is. Short distance from customers means quick response times. In the first half of July, a large number of site installations were completed. In August, the last two radio network controllers of the initial phase were installed and connected to the E-Plus network. In November, ZTE completed testing on the operations support system. Thousands more sites in Germany will be upgraded or swapped with ZTE technology in the future.
ZTE’s engineering has brought several advantages to E-Plus. Data throughput has been significantly improved, and ZTE modules use less energy, generate less heat, and are compact. They can be transported easily so that installation and maintenance are simplified. ZTE also used SDR base stations for network expansion. SDR technology allows multiple wireless standards to be applied to a base station, and the change from HSPA to LTE can be done via software upgrades. This makes the E-Plus system futureproof. With the new network, the cost of logistics is reduced, support is considerable, and new services can be easily created. New revenue opportunities can be exploited in the shortest possible time.
End-to-End Solution
The agreement with E-Plus is not limited to the provision of access technology. It includes the delivery of core network technology and terminals, which provides E-Plus with end-to-end solutions—from the core network via access technology to handsets. In December 2010, E-Plus launched the first ZTE smartphoneunder the name “Base lutea” (ZTE Blade).
When asked whether E-Plus fears becoming too dependent on ZTE, Matthew Geller replied, “Europe is a very attractive destination for Asian companies. If we become disappointed with ZTE or any other Chinese company, this would jeopardize their reputation in Europe. And nobody wants that. Besides, ZTE is totally transparent. We always know who is responsible for what and what the balance sheets say. This promotes confidence.” The German Federal Network Agency, a state regulatory body, sees no problem in the close cooperation between KPN and ZTE.
E-Plus has the next wireless standard in its focus, namely, LTE. Even here, E-Plus has been working closely with ZTE. Since February 2011, E-Plus has been conducting LTE field tests on ZTE technology using three frequency bands. The technology is being prepared for deployment of LTE in the E-Plus data network.
Learning from China Mobile
In Germany, the 2.6 GHz band is being used for TDD-LTE trials for the first time. TDD-LTE has mainly been used commercially in Asia, but E-Plus is pioneering a quasi-Asian standard in Europe. E-Plus is working together with the world’s largest mobile operator, China Mobile, and drawing on their rich experience in operating TDD technology. China Mobile brings expertise in operating and maintaining TDD networks and has supported the tests done by E-Plus.
However, conditions in China differ to those in Germany, particularly in relation to customer behavior and acceptance. TDD-LTE services large populations in China and throughout Asia, and it is the only way to offer fast Internet access in Germany without the using expensive fiber optics. Therefore, the standard has been well received to date. Gerhard Lüdkte of E-Plus is confident that Germany will accept the new technology.
Double Challenger Strategy
“We are a challenger in the German mobile market, and ZTE is also a challenger in their field. The chemistry between the two companies is just right,” said Gerhard Lüdtke. “We had ZTE on our screen since our first contact in Shenzhen in 2005. In Asia, ZTE is already an established supplier of sustainable technology and communication. They have a remarkable track record of projects in various states, not only in China. As for the technology, ZTE can compete with other suppliers and is even superior to them.” Geller added, “We need a strong partner, because we are exposed to fierce competition. ZTE provides us with solutions that simply work well.”
“With our power to innovate, we push E-Plus to the forefront. E-Plus can absolutely rely on us as a partner,” says Li Jun, CEO of ZTE Holland and head of the network expansion project at E-Plus and KPN Belgium. “For us, the network expansion for KPN International is a milestone on the way into the European market.”
ZTE Technologies magazine, Oct 2011 issue [PDF, Sept 9, 2011]
“Solutions”: Uni-RAN – A Perfect Way to Modernize Mobile Networks [Sept 19, 2011]
Demand for Network Modernization
Mobile broadband continues to develop and succeed at a phenomenal pace. The Global mobile Suppliers Association (GSA) confirms that as of May 2011, more than 99.5% of the world’s WCDMA operators have deployed HSPA on their networks, and over 30% of them have evolved to HSPA+. The GSA also anticipates that 81 LTE networks will be in commercial service by the end of 2012 in addition to the existing 20 that have been launched commercially. The rapid growth of mobile broadband has placed high requirements on architecture and management of mobile bearer networks.
GSM/EDGE has by far the largest subscriber base, accounting for more than 88% of global mobile subscribers. Yet most GSM operators are now facing pressure from the growing demand for data services and declining ARPU. Legacy network devices and architecture are barely able to meet the requirements. It is therefore imperative to modernize legacy mobile networks for high profitability and sustainable development.
ZTE’s Uni-RAN Solution
To modernize networks, ZTE has developed an innovative Uni-RAN solution that ensures smooth evolution and easy O&M without affecting existing services.
Smooth evolution
Uni-RAN adopts a unified SDR platform that supports multiband and multimode radio configurations. The CN and OMM parts of multiple radio systems are converged in Uni-RAN. This simplifies network architecture and makes network O&M easier and more reliable. By updating software and minimizing changes to hardware, Uni-RAN allows for smooth evolution from GSM/EDGE to WCDMA and then to LTE. In network modernization, it is quite important to balance investment in equipment, network O&M, and network profitability. Because it allows for smooth evolution, Uni-RAN can extend the lifecycle of a network for longer time.
Flexible networking
ZTE’s SDR base stations come in various types, ranging from indoor macro base stations for dense, high-traffic urban areas to outdoor micro base stations for remote coverage in suburban areas. The advanced BBU+RRU structure is suitable for almost all application scenarios, and installation is also easy and efficient. Compared with legacy indoor macro base stations, the BBU+RRU design saves more than 75% of equipment room. With diverse base stations and flexible networking mode, Uni-RAN helps operators economize on manpower and material resources.
Outstanding performance
Uni-RAN has performance advantages that help operators reduce OPEX, especially transmission and energy costs. The all-IP platform used for SDR base stations greatly enhances communication efficiency and saves on rental fees for E1 transmission. BBUs and RRUs are specially designed to suit different application scenarios. They are small, silent, energy efficient, and naturally cooled. Uni-RAN adjusts transmitting power of RF units according to real-time traffic load. These adjustments are made using software so that power consumption throughout the network is completely optimized.
Speed Up Network Modernization
By the end of 2010, ZTE had deployed GSM/UMTS networks for 120 operators in more than 100 countries. ZTE’s SDR equipment―the c o r e o f U n i – R A N ― has been recognized by operators worldwide since it was first launched in 2007. ZTE has achieved large-scale breakthroughs in the global high-end telecom market with the SDR base-station platform. Companies in Europe, such as KPN, Telenor, Telefonica, Optimus and H3G, are using SDR base stations deployed by ZTE. In 2010, the total shipment of ZTE’s SDR base stations exceeded 700,000 units.
Driven by an upsurge in mobile network modernization around the world, ZTE has seized the opportunity to focus on network swapping projects. The company has helped 67 operators in 29 countries modernize their networks, swapping more than 200,000 base station sites. In the first half of 2011, 160,000 GSM/UMTS carriers were successfully swapped by ZTE. Through cooperation with leading operators, ZTE has gained rich experience in network swapping and enhanced capabilities in logistic, engineering, and network optimization.
CSL: create a simple network
CSL is the largest mobile operator in Hong Kongwith more than 3 million subscribers. CSL had four original mobile networks: a 900MHz GSM network, two 1800MHz GSM networks, and a 2.1GHz UMTS network. The maximum download rate supported by the UMTS network was only 2.1Mbps, which was insufficient for meeting the requirements of 3G subscribers. Various NMS interfaces were being used to accommodate multiple modes and frequency bands. So CSL had difficulty managing and maintaining individual networks. The complicated network architecture also made it difficult to evolve networks and ensure QoS.
In 2008, CSL chose ZTE as a partner in its network reconstruction. Using Uni-RAN, CSL completely converged its GSM 900/1800M, UMTS 900M, UMTS 2.1G and LTE 1.8G/2.6G networks within two years. Unified network management was also implemented. 2500 base station sites were swapped. The restructured HSPA+ (or Next G) network is capable of downloading data at up to 21Mbps. According to internal research conducted by CSL in 2010, data traffic has increased by more than 65 times since the Next G network was launched in early 2009.
During the network swapover, CSL cut down the total number of base stations from 5050 to 2050, replaced original E1 transmission with FE transmission, and saved 20% transmission resources. CSL reduced network OPEX by 35.7% and greatly improved its profitability.
Ncell: make a miracle on the Top of Mt. Everest
Ncell is a wholly owned subsidiary of TeliaSonera and is the second largest mobile operator in Nepal. Its network covers 42% of mobile subscribers in the country. Ncell aims to capture the largest market share.
Nepal contains part of the Himalayas, the highest mountain range in the world. Eight of the world’s ten tallest mountains, including the highest point on Earth, Mt. Everest, are located in the country. Deploying base stations on the world’s highest mountain presented big challenges to Ncell.
For fast deployment and smooth evolution, Ncell adopted ZTE’s Uni-RAN solution in its network reconstruction project. Micro base stations using the SDR platform consume less power, have a small footprint, and are easy to install. A one-piece mast and insulated shelter are used for the stations, and this allows the base stations to be installed quickly without the need to move earth or construct foundations. Solar panels are incorporated into the design to ensure that base stations have power supply throughout the year and are environmentally friendly. These features allow each base station to operate at optimal levels with minimal power usage even in temperatures as low as [minus] 30˚C to 40˚C. Overcoming altitude sickness and harsh natural environment, ZTE engineers deployed eight 3G base stations on Mt. Everestone month ahead of schedule.
After 500 base station sites were swapped in the initial phase, Ncell reduced energy consumption by over 45% and saw a rapid rise in their subscriber base and data traffic.
OPhone 2.5 and beyond from Borqs for China Mobile
Recommended preliminary reading: OPhone OS (OMS) 2.0 based on Android 2.1 [July 5 – Dec 13, 2010]
China Mobile trailer video [Jan 8, 2011]
Borqs: The Early Bird Catches More Worms [Borqs article, Nov 23, 2011]
The lower versions of Android were found to be instable, and so was TD-SCDMA system. All these brought unexpected troubles to Borqs.
At the Mobile World Congress (MWC) held in Barcelona on Feb. 14th this year, Intel Capital, Intel’s global investment organization, announced that it would invest USD 26 million in six mobile startups to help drive innovation and development of mobile hardware, software and application ecosystems. Borqs, as a software solution provider from China, was one of them. Arvind Sodhani, Executive Vice President of Intel, commented on the investment as an important commitment to the key growth fields in mobile ecosystems.
Although officially introduced as a China-headquartered Android software integrator for mobile devices at MWC, Borqs has already been known as the strategic developer of China Mobile for OPhone OS. It has succeccfully ugraded OPhone from version 1.0 to 2.5 through constantly opitimizing TD chips and network, increasing its OEM partnerships from 8 to 20. Currently, Borqs’ Android solutions have been widely used in more than 30 W-CDMA and TD-SCDMA based Android mobile devices with a total shipment of 2 million plus.
“I saw the great potential of Android, and then I thought it’s time for me to start Borqs.” Pat Chan, CEO and President of Borqs, said during an interview by CBN Weekly. According to him, Borqs was one of the only four or five companies that had access to non-complete open-source codes before the launch of Android by Google. This enabled Borqs to initiate system development one year earilier than its competitors.
The technical strength of its team also gave the company more opportunities. Pat Chan was the former Vice President and CTO of UT Starcom Incorporated, taking charge of operations of communication infrastructures (wireless, broadband and IPTV, etc.). Bob Li, Senior Vice President of Borqs as well as the partner of venture fund, Yellowstone Capital, once held a position of senior developer at Philips Semiconductor. Rao Hong, another Vice President of Borqs, known as one of the excellent local employees trained by Motorola, was the founder of Linux-based Motorola EZX phone platform, which afterwards evolved into a famous operating system of Motorola – Linux-Java(LJ) .
At that time, China Mobile was investing heavily into mobile value-added services and developed a series of new services such as Mobile Newspaper, Fetion, Mobile Stock, Mobile E-mail Box, Mobile SNS, etc. In the Mobile Internet era, however, the trump to dominate the terminal market is to launch an independently developed operating system and pre-build customized value-added services into terminals; at least that was how China Mobile defined its marketing strategies at that moment.
As once expected by China Mobile, interface and services of Android may be replaced with China Mobile owned services – OMS and OPhone may be built onto OMS in cooperation with OEMs. So that China Mobile would launch services and advertising on its own handsets. To this end, Borqs, which has been always dedicated to Android, became the partner of China Mobile for the development of mobile operating system.
Voices of doubt about OMS system development were often heard at the beginning. “It was quite difficult. There were so many problems about campatibility and configuration. Nobody believed that we could make it“, Phat Chan said. Since mid-2007, the team had been researching and developing the operating system, and then finally succeded after two years.
However, OPhone failed to become a hit on the maket at the very start. Lenovo’s first OPhone-based product, also the first OMS handset, was initally launched at the price of RMB 5,999 yuan, expected as a powerful weapon to beat iPhone. However, its price declined to RMB 1,500 yuan as of the end of 2010.
In fact, Borqs made a number of modifications to the bottom layers of Android catering to customer demand in the process of developing OMS platform. These efforts have successfully made OPhone quite different from Android, such as appearance and kernals. But, nearly all the Androids before version 1.5 was instable, resulting in its frequent upgrates by Google. In addition, compatibility issues still exist between Android 1.0 and 1.5. All these had posed big challenges to Borqs.
What’s more, immature TD technology impacted on customer experience to some extent. At the beginning of TD’s commercialization, terminals were in severe shortage. Most OEMs only launched one or two types of handsets with lower performance in the apsects of apperance, application, interface compared with the mature 2G phones. Simultaneous work of about 7 chips were required for a TD terminal. This, plus deficiency in power consumption and adaption as well as high terminal price, led to low shipment and OEMs’ failure of making profits.
“Any tiny trouble may influence the use of handsets. Before launching Ophone 2.0, we have solved 159 TD chip related problems, and modified over 1,000 items of OPhone OS 2.5,” Pat Chan pointed out. According to him, MTBF test requiring a 200h or above of predicted elapsed time between inherent failures during operation was made to improve the stability in the course of development. This indicated that the design level of OPhone based terminals must be close to or even aligned with that of TCDMA terminals.
“The criteria of 200h was just enlightened from our partner. The MTBF value was once required to hit 800 hours when we dealt with a US company,“ Pat Chan stated. From the first-round to the fourth-round debugging, the stability of OPhone has increased from 24 hours to 255 hours. “We used to define Failure to Pass as system crash, but now even a failure to execute a single command will count”, he added.
According to him, among OPhone 2.5 based handsets launched this year, Motorola MT 620 boasts a MTBF value of over 200 hours, far surpassing other common terminals with a value of 60-70 hours. “stability is the essential premise for good consumer experience,” he said.
At the time being, chip development saw some progress too.
Marvell’s single chip solution provides the first access for TD smart terminals to stand on the same starting line with WCDMA terminals.Marvell TD-SCDMA single chips solution, PXA320, is sponsored by the Research Institution of China Mobile. It not only help realize great improvements of chip performance, but also enables easy resolution to the soft spot in apperance design and power consumption.
In overseas markets, cooperation with Qualcomm and Infineon Technologies helps Borqs accumulate lots of experience in W-CDMA chips. Also, the company has established partnerships with some handset manufacturers in Japan and India, as well as Singtel from Singapore. One of them has used Borqs’ chip solutions on its gobal Andriod terminals.
“From 2007 to 2010, OPhone accounted for 60% of our business, but now this figure has dropped to 30%,” Pat Chan said. As he stated, what make him proud most is to carve out Borqs, not that fast, but eventually recognized. He plans to further invest into technology. “Our next focus will be still on operating system, and we will also make continuous investment in cloud computing,” he further stated. For now, it is said that the research and development expenses account for 80% of the total payout at Borqs.
About Borqs
Average growth rate for three years:1054%
Founder: Pat Chan
Headquarters: Hong Kong
Core technology : End-to-end integrated software solutions for mobile Internet
Leading-edge technology: Seamless connection of mobile operators, terminals, chips and mobile Internet.
Technology revenue :R&D expenses account for 80% of the total
Financing amount: USD 35 million
Business model: Borqs is committed to providing end-to-end software solutions for mobile Internet industy, thereby helping partners map out their own solutions.
Borqs: Dedicated to End-to-end Integrated Software Solutions [China Computerworld via Borqs, Nov 4, 2011]
Ms. Wang Tun, Vice President, Business Development at Borqs International Holding Corp (Borqs) said: “We have received much attention for OMS (Open Mobile System) represented by OPhone that we developed for China Mobile. However, OMS is just part of our core business.” As far as what she said goes, China’s independently developed OMS has aroused widespread concern in recent years, bringing its developer, Borqs, under the spotlight. However, Borqs is not well known to the public yet. The technical competitiveness of this emerging tech company established in 2007 and its other operations except for OMS are still behind the curtain. Now a recent field interview may help you know more about this somewhat still mysterious company.
Dedicated to end-to-end integrated software solutions
Borqs operates in an independent six-storey white building in Wangjing Plaza, Beijing. According to an employee with Borqs, considering its robust growth in recent years, the company rented this office building in whole, but it is just one of its office locations in Beijing. During the interview in a meeting room, it was easy to be impressed by a variety of patent certificates on the wall and, somewhat surprisingly, the straightforward talk by Ms. Wang Tun, Vice President, Business Development at Borqs.
“Our business is composed of three lineups since the establishment. Borqs is not just about OS,” Ms. Wang said. Incorporated in 2007, the company is a high-tech enterprise dedicated to providing end-to-end integrated software solutions for the whole industrial chain of mobile communications. “Cloud, management and terminal”, referring to, respectively, Mobile Cloud Computing Platform, Mobile Information Management System Platform (Mobee, Mobile Widget) and OMS, were positioned as three main lineups underpinning Borqs for making its corporate objective real.
Borqs’ OMS is mainly represented by Android-based OPhone running on the Linux kernel. It is an independently developed operating system essentially different from those operating systems modified from Android in China’s market. Ms. Wang Tun said: “OMS is an open mobile intelligent software platform. It includes a Linux Kernel, middleware, Java virtual machine, application software and other applications such as FOTA [Firmware Over-the-Air], RIL [Radio Interface Layer] and WebKit. It also features high compatibility same as that of Android and Bada.”
OMS is the trailblazer of China-owned mobile operating system, but facing a fierce competition against several powerful rivals in local Chinese market, such as Cloud OS launched by Alibaba. It has been affirmed that Baidu will roll out its mobile operating system supportable to China Telecom’s CDMA 2000 standard at the end of this year. Nevertheless, Ms. Wang Tun said for sure that there was no need to worry about that.
She explained her confidence quite directly: OMS is a continued evolution of advanced technology, also an integrated solution. According to her, many new features, such as Html5 and cloud application, are hyped up by the industry, but they are immature with many defects, including slow traffic caused by real-time networking and compromised user experience by unstable network. Reversely, Borqs, rather than talking big, is always committed to improving the performances of OMS for constantly enhanced user experience. Its next-generation OMS will focus on voice intelligence, multi-screen play, LTE, IPv6, security and more powerful chips. To that end, the company has established a wide range of partnership programs with some global players, such as NEC and Singtel.
Focusing on Mobile Internet Market
The success of mobile Internet on the consumer market is just a starting point of its future rise. Together with the increasing popularity of mobile Internet and smart terminals, more applications for mobile business purpose will be created and provided for a wide spectrum of industries. Simple, efficient and safe corporate-level solutions will be bringing more benefits. With this in mind, Borqs has been striving to deliver end-to-end integrated software solutions just for business customers, with some remarkable achievements already made.
According to Ms. Wang Tun, Borqs has had some success cases in the fields of information system construction and e-government, the major part of which is mobile Internet-enabled industry application systems built upon mobile clients and mobile cloud computing on the back end. Its information management system is customized based on [its] Mobee management platform, integrating an audio/video information system for content distribution.
Also, Mr. Wang Tun disclosed that [its] Big Cloud, developed by Borqs with advanced open source technology, is designed to provide a complete, innovative solution for massive data processing and user management catering to mobile Internet. Big Cloud is a system platform innovated and developed with IRP [?Internet Resource Planning?] on mobile Internet, IT support system solution and the low-cost PC-Grid computing technology. It is a platform with high performance of reliability, availability and scalability. She even revealed that the company has been dedicated to the research of Big Cloud-related technologies since its establishment.
At present, Mobee is far from public knowledge. It is reported that Mobee is a mobile Internet application platform based on mobile information management technology, covering application management, news, e-books and audios & videos. Borqs has made a special strategy for Mobee: As the core of information management systems, it is made available for customers on a customized basis; meanwhile, generous efforts are made in brand incubation to promote its offerings such as Mobee Apps, Mobee News, Mobee Readings, Mobee Weather, Mobee Stock, etc.
Mentioning the future industry applications, Ms. Wang Tun said that Borqs, with strong technical power, is willing to create a win-win industry chain by partnering with system integrators and developers from various industries.
Now, many new features of mobile operating systems, such as Html5 and cloud application, are just hypes, rather immature with many defects, including slow traffic caused by real-time networking and compromised user experience by unstable network.
Asus T20 introduced smart phones, using OPhone 2.5 platform [Oct 25, 2011]
Asus in Beijing released T20 smart phones. According to information, released the T20 smart phones, mobile launch, working with the second paragraph TD mobile phones.
T20 in mobile leading harsh OPhone2.5 mobile terminal product special test, with minimal number, the total score of the excellent result ranked first in the first through the test, and become the first OPhone2.5 China mobile platform 3 G smartphones.
Computer China headquarters handheld division TangShiLin general manager, said on the 3 G information age, asus has issued the Windows platform of mobile phones, the M A of the Android platform of mobile phones, and began in 2009 and China mobile cooperation development TD mobile phone, support our country with independent intellectual property rights td-scdma technology standards, released Ophone system of mobile phone T, to the mobile phone released today T20, asus always insist the complete set up from the personal computing end to the clouds of the bridge operation mission, smart phones can let users instant, namely, to get more human nature on the content and all kinds of clouds service, is to the clouds of calculation an important terminal.
China Mobile Research Institute: Ophone basic catch up iPhone [Beijing Morning Post, via Google Translate, June 10, 2011]
Morning News (Reporter Jiao Likun) held yesterday TD intelligent terminal technology development seminar, China Mobile Research Institute Bill Huang said that China Mobile Ophone has basically caught up with the iPhone’s level, in addition to a technology – Multi-Touch screen.
Bill Huang pointed out that after five years of development, the Ophone has the best multi-tasking, open, API, etc. to catch up with iPhone, but still in the multi-touch in Apple’s lead.
iPhone touch screen mobile phone caused a global boom. China Mobile Ophone is the leading smartphone platform. Borqs Tun Wang, vice president of Commerce, said that so far, OPhone phone has been developed 29. To the end of last year, Ophone in TD smart device market share up to 38%.
Wang Tun said that this year will introduce OPhone 2.6 platform to support high-definition video transmission and interactive television, Ophone will use the Tablet PC Edition operating system.
Borqs to Launch OPhone 3.0 in Q1 2012 [Marbridge Daily, Netease Tech, June 8, 2011]
Wang Tun, VP of Beijing-based mobile software solutions provider Borqs, recently revealed that version 3.0 of China Mobile’s (NYSE: CHL; 0941.HK) OPhone mobile OS will be released in Q1 2012, featuring improved security, IPv6 support, and new cloud-based services.
The OPhone or Open Mobile System (OMS) is an Android-based platform that supports a number of China Mobile data services, such as mobile IM client Fetion, the Mobile Market app store, and 139 mobile e-mail. Wang said Borqs is cooperating with over 20 handset manufacturers to produce OPhone smartphones, with R&D completed on 29 handsets, more than 20 of which have already been released. As of the end of last year, OPhone accounted for 38% of the TD-SCDMA smartphone market. A number of handset manufacturers, including Motorola, Sony Ericsson, Huawei, ZTE (0763.HK; 000063.SZ), and Sharp, will continue to release products this year featuring the recently released OPhone 2.5 mobile OS, at prices significantly lower than those in the past two years.
Borqs OPhone years of “stealth” to cloud the future [Communications World Network via Google translation, Aug 15, 2011]
Communications World Network ( CWW ) 8 (Reuters) broadcast communications, an industry that is familiar and unfamiliar company, familiar because of their many years of time to focus on OPhone OS operating system platform development, and OPhone products have also been seen as a TD terminal symbol of product development; and it is because they are unfamiliar with China Mobile in the market between the origin of long-term low-key publicity.
Along the way, OPhone ups and downs
August 31, 2009 China Mobile jointly released the first batch of more than OPhone mobile terminal manufacturers, and OPhone OS 1.0 version of the operating system is also to meet with the user. Borqs Tun Wang, vice president of business media conference admitted in, OPhone end product from scratch, is a gradually mature, and gradually perfect the process. OPhone launch five platform version of the two years, more than 30 terminals, OPhone more mature; simultaneously fit all of the TD Modem and mainstream chip, driven by the industrial partners, industry, environment, maturity and development.
Initially released in 2009 to Lenovo O1 OPhone most typical mobile phone, from the terminal point of view, TD industry in terms of the chip industry is a new challenge, because chip solution immature, then a TD mobile phone chip requires about seven simultaneously, the power consumption and adapter for mobile phones and other issues, it faces enormous challenges. TD mobile phone form factor is also a single, larger one important reason. And, TD network instability also affects the user experience.
Insiders pointed out, it is undeniable that when criticized by the parties OPhone terminal operating system is not all over, in the TD network, terminal hardware support are varying degrees of problems, integrated all the factors causing the user for the OPhone misunderstandings, but also caused difficulties in the latter part of OPhone terminal advance.
OPhone early stages of development, the terminal price is a major cause of limited advance, while the single-section shipments are not ideal terminal into a terminal manufacturers are not profitable, the hardware chip count not a big bang, end the vicious cycle of high prices.
Wang Tun, concedes, Marvell single-chip solution can be said that the launch of TD industry chain of development, making TD the first opportunity to intelligent terminals and WCDMA terminals stood quite the starting line.
It is understood, Marvell’s TD-SCDMA PXA920 single-chip solution is strongly supported by the Research Institute of China Mobile TD-chip R & D projects, and the introduction of single-chip solution not only in chip performance has been greatly improved, while the terminal design and energy problems are solved.
Currently, OPhone OS version 2.5 has been reached, after the first two years of pain, the current OPhone either hardware support or software systems, are the best period of development ushered in history. Gradually introduced in the first half of this year, a variety of OPhone phone prices were 2,000 yuan, while Huawei T8300 has achieved a thousand OPhone goal, which broadcast communications, said Ray Wang, senior director of product management, the current OPhone the price of smart phones has basically become more reasonable, cost-effective but also more acceptable to users, will usher in the next outbreak.
Stability is the key OPhone
In April, Borqs released its latest 2.5 version of the OMS, based on kernel development Android 2.2 made, it is reported, OPhone OS 2.5 version compared to the previous version has more than 1000 improved, more focus on user experience. Wang Lei said, OMS2.5 whether or Widget UI design experience more in line with the Chinese people for the smart phone experience, while the Internet anytime, anywhere “with e-line” client, 2G / 3G network access to the “VPN enterprise network,” The new “mobile reading” experience, support Wi-Fi to download the “game room”, etc. are OPhone2.5 improvement highlights.
OPhone OS operating system from the emergence of the software compatibility has been criticized by the industry’s biggest problem, now the new 2.5 version of this problem has been completely resolved. Borqs Commercial Director Zou Junfeng said, “first-line OPhone phone manufacturers need Google 100% compatibility testing, while doing OPhone the outset, we and Google are the anti-secession agreement, and now in the Android market, all the software in OPhone 2.5 can be run on the phone. ”
Wang Lei said that in the year listed OPhone 2.5 phone, Motorola MT620 mobile phone has been tested time and stable operation of its independence in 200 hours or more, and now the vast majority of end-user experience of failure-free run-time is generally 60-70 hours, and stability to the user experience is an important prerequisite for good.
According to reports, Motorola MT620 terminal shipments more than 30 million, and this year with Huawei T8300 phone shipments will exceed 50 million, which will refresh OPhone new record mobile phone shipments.
OPhone from the terminal to the cloud
While the current “mobile cloud” concept continually referred to by the terminal manufacturers, mobile phone from the terminal has become an inevitable trend toward the clouds, which Wang Tun introduced to, OPhone OS 3.0 is developing next-generation version, but in this version, the “cloud “OPhone will be implanted into the phone, while the cloud service system will be realized in the end.
Wang Tun said, including cloud services such as Apple’s iCloud launch, users also enjoy the convenience of personal privacy is under threat, due to personal information are all on the cloud, personal security, and national security is bound to be under threat.
Currently Borqs ongoing services in the cloud-end R & D program, but also China Mobile “big cloud” 1.0 plan providers, I believe that with the clouds and end-system continues to mature, I believe that will provide stable and secure cloud the overall service .
http://pdadb.net/index.php?m=pdamaster&posted=1&os=a250o
Motorola MOTO MT620
Release Date: June, 2011
OS: Borqs OPhone OS 2.5 Chinese
CPU: 32bit Marvell PXA920, 806MHz
Memory: 512MiB RAM, 512MiB ROM
Display: 3.1″ 320×480 pixel color transflective TFT
Cellular Phone: GSM900, GSM1800, GSM1900,..Physical Attributes:60 x 122 x 12.4 mm, 123 g
Sony Ericsson WT18 / WT18i
Release Date: June, 2011
OS: Borqs OPhone OS 2.5
CPU: 32bit Marvell PXA920, 806MHz
Memory: 512MiB ROM
Display: 3.2″ 320×480 pixel color transflective TFT
Cellular Phone: GSM850, GSM900, GSM1800,..
Physical Attributes: 56.5 x 106 x 14.3 mm, 110 g
Sony Ericsson WT18i also started to launch similar mobile phones [Nov 24, 2011]
There was an increase in demand for mobile music after the launch of the Walkman series phones from Sony Ericsson. To take on phones Sony Ericsson music, other companies also started to launch similar mobile phones. Whatever the level of competition from SE Walkman phones definitely belong to a class way beyond the reach of its rivals. This time he came with the new Sony Ericsson WT18iphone Android to charm the masses.
After the announcement of the new W8, WT18iis the final Walkman phone from Sony Ericsson that was introduced in China. This is a phone that works with TD-SCDMA/GSMA Chinese version of the operating system Android 2.2 (Froyo) called OPhone 2.5 which is fully compatible with all Android applications. It is available on China Mobile and uses Marvell PXA920 806MHz CPU processor power. The WT18i has a 3.2-inch HVGA capacitive touchscreen with a resolution of 320 × 480 pixels.
Other features include the WT18i 3Mega pixel camera, 150GB of internal memory, Bluetooth 2.1 + EDR, GPS, Wi-Fi b / g / n, an FM tuner, Sony Walkman basic audio, and a micro card slot SDHC. It is also able to shoot videos 480/24p. Coming soon in China, the Sony Ericsson WT18i uses a battery 1200mAh, 56.5 × 106 × 14.3mm and weighs in a position only 110 grams.
WT18i indicated is similar to a Walkman phone Sony Ericsson W8, Sony Ericsson WT18i specifications indicate that this phone is designed for low-end marketsand cheap, young people who consider price. Sony Ericsson uses Marvell PXA 920 processor WT18i, 806 MHz clock speed and a screen 3.2 “HVGA. Device is equipped with a 150 MB the internal memory and microSD card slot (up to 32GB)
Sony Ericsson WT18i Specification and features :
- Display: 3.2 inch HVGA capacitive touchscreen display with 320 × 480 pixels, 16M colors
- Single-Touch and ease of handwriting recognition
- 3GP and MP4 video
- Camera: 3 MP camera with video recorder 480p
- Virtual QWERTY Keyboard
- Expandable memory: up to 32 GB MicroSD Card
- Operating System: Android OS 2.2 Froyo
- Connectivity: Bluetooth and Wi-Fi 802.11b/g/n options
- Dimension: 106 x 56.5 x 14.3 mm
- Weight: 110 grams
- Battery: Li-ion 1200 mAh
With the Walkman W8 WT18i and advertising, things are going well for Sony Ericsson. However, these are mid-range. Hopefully they have something in reserve for high-end consumers. On the other hand, many people do not see the point of most Walkman phones. Is Sony taking a gamble with their latest offers? We think so. The most important question is: the bet will pay off eventually? Stay Connected for more news about it!
Price :
- PKR: Rs.27, 500
- USD: $ 299.99
The current (Nov 29, 2011) low-end offerings are the following ones:
| Brand: | Huawei | Coolpad |
| Model: | T83003.2″ Capacitive Screen Ophone 2.5 TD-SCDMA 3G Smart Phone w/ WiFi+GPS – Black | 88093.2″ Touch Screen 3G TD-SCDMA OPhone 2.5 Android Smartphone w/ Wi-Fi + TV – Black |
| Price: | $138.90 [elsewhere is the same street price of ¥ 888.00 = $139.21] EUR 114.33 | $141.60EUR 116.55 |
| Color: | Black | Black |
| Special Features: | Slim body,quick react screen, 3.2″ capacitive screen display, Customized App can be removed by root. | TV and Wi-Fi function available, Ophone 2.5 system, fully compatible with the Android 2.2 OS applications |
| IMEI: | Unique | Unique |
| Format: | Touch Smart Phone | Touch bar smartphone |
| Cell Phone Weight (w/Battery) | 104.0 grams | 127g |
| Operating System: | Android based, Ophone 2.5 | Ophone 2.5, fully compatible with the Android 2.2 OS applications |
| Processor: | Marvell [PXA918], 600MHZ | Marvell PXA918, 624MHz |
| LCD Screen: | 3.2-inch capacitive touchscreen | 3.2-inch screen |
| Screen Resolution: | 480 x 320 pixels | 480 x 320 pixels |
| Touch Sensitive: | Yes | Yes |
| Network Bands: | GSM/TD-SCDMA, 2G:GSM850/900/1800/1900,3G:TD-SCDMA1880-1920/2010-2025MHZ | GSM/TD-SCDMAGSM:900MHz/1800MHz/1900MHzTDSCDMA:1880/2010MHz |
| SIM Slots: | Single SIM slot | Single SIM slot |
| Data Connections: | WiFi/WAP/GPRS/EDGE/HSPA | GSM/GPRS/EDGE/TD-SCDMA |
| Bluetooth: | V2.1+A2DP | V3.0 |
| Wifi/Wireless LAN/WLAN: | Yes. 802.11b/g | Yes, 802.11b/g/n |
| Speakers: | 1 Speaker | Single speaker |
| Memory Slot Type: | MicroSD/TF card up to 32GB in size (2GB memory card included) | MicroSD/TF card up to 32 GB in size (2GB memory card included) |
| Built-in/Included Memory: | 512MB ROM, 512MB RAM | 512MB ROM, 256MB RAM |
| Digital Camera(s): | 3.2MP, Picture Max Resolution: 2048×1536 pixels | 300 KP front camera plus 3.0 MP back camera with 1536 x 2048 pixels resolution |
| GPS: | Built-in GPS | |
| G-sensor: | Yes | |
| JAVA: | Yes | |
| Playback Formats: | MP3/3GP/MP4/JPG/TXT (with certain App almost all the formats are supported) | MP4/3GP/MP3/AAC/MIDI |
| TV Tuner: | No | Yes, PAL/NTSC/AUTO |
| FM Radio Tuner: | Built-in FM Radio Tuner | No |
| Voice Recording: | Voice Recording Supported | Yes |
| Batteries: | 1 x 1200 mAh lithium ion rechargeable batteries included | 1 x 1450mAh lithium battery |
| AC Charger: | 100~240V AC Battery Charger included (2-Flat-Pin Plug) | AC 100~240V Power Adapter (EU plug) |
| Recharge via USB Port: | Yes | Yes |
| Phone Language(s): | Chinese/English | Chinese / English |
| User’s Guide: | English user’s guide included | English/Chinese user manual |
| Accessories Included: | 1 x 3.5mm earphone1 x 1200mAh battery1 x USB Charging/Data Cable | 1 x 3.5mm earphone1 x 1450mAh lithium battery1 x USB cable with AC adapter1 x 2GB TF card |
| Manufacturer’s Warranty: | 12 Months excluding physical damages (see specifications for terms and details) | 15 Months excluding physical damages (see specifications for terms and details) |
Note that the Huawei T8300 is the TD-SCDMA specific redesign of the IDEOS X3 smartphone announced at MWC’11 (but only delivered since June’11, for around US$240 in Singapore and for around US$200 in Malaysia). The Qualcomm MSM7227 SoC (announced in Feb’09 for sub-$150 smartphones) used in X3 was not able to support TD-SCDMA so the only available SoC was Marvell’s PXA920/918 SoCs family available since Sep’09 (although capable of passing the rigorous TD-SCDMA tests only almost 2 years).
Coolpad Will Dump Chinese Mobile Phone Manufacturing Next Year [Nov 30, 2011]
Li Wang, executive vice president of the Chinese mobile phone brand Coolpad, revealed that the company plans to completely stop manufacturing mobile phones and non-smartphone devices in 2012.
Instead, the company will try to focus only on smartphone manufacturing. Li told local media that Coolpad’s mobile device shipments in the entire year of 2011 is expected to reach over 12 million units, of which over 60% are smartphones.
…
Coolpad’s current business focus in reportedly on the domestic Chinese market and the first- and second-tier cities are its key markets. With its gradual penetration into the third- and fourth-tier cities, Coolpad will adjust its sales and marketing strategy accordingly, said Li. Apart from the domestic market, the company will continue to expand into overseas markets. Following its entry into India and Indonesia, the company has started developing the North American and European markets.
Borqs Unveils Latest OPhone Handsets at 14th China Beijing International High-tech Expo [Borqs article, May 20, 2011]
With the coming of the World Telecommunications Day, the 14th China Beijing International High-tech Expo (the Expo) opened at China International Exhibition Center from May 18th to 22nd, 2011. This Expo was co-organized by several state departments of China, including the Ministry of Science and Technology, Ministry of Commerce, Ministry of Education, and Ministry of Industry and Information Technology. Many innovative enterprises participated into the Expo with their innovation achievements. Borqs, one of the members of China’s National Special Key Projects, were also invited and exhibited the new serial of TD smartphones running on OPhone OS 2.0 or higher.
From “Made in China” to “Created in China”, and then to “China Standards”, enterprises based in Zhongguancun have always been committed to innovation and development since their establishment. As technology advancement and industry transfer are seen everywhere around the world, China Mobile developed and launched the first 3G standard in China, TD-SCDMA, a decade plus ago. As of today, China Mobile has maintained 61.9 million 3G mobile users as well as 26.99 million TD-SCDMA users. Recently, Mr. Jianzhou Wang, the Chairman of China Mobile, pointed out that TD system was no longer a test network but a commercial one covering 656 cities around China with the joint efforts of China Mobile and its industry partners from within and outside the country. Especially, the TD-SCDMA industry chain has emerged in recent years,, consisting of near 50 telecommunication enterprises, including many manufacturers and providers of network, terminals and chips, in and outside China.
OPhone OS is closely related to TD. Up to now, OPhone smartphones account for 50% of TD smartphones. At the Expo, a wide range of TD terminals are exhibited, including many new OPhone-based models. Following its receiving recognition from the state officials at the prior 11th Five-year Plan Major Science & Technology Achievements Exhibition, OPhone OS continued to be all the rage and attracted many visitors at the Expo.
Mr. Huang Xiaoqing: China Mobile Started Research of OPhone 3.0 [Borqs article, Oct 13, 2010]
NetEase Tech, October 12th – Mr. Huang Xiaoqing, President of the Research Institution of China Mobile, told NetEase Tech during an interview at the ICT China High Level Forum 2010 that China Mobile had initiated the research plan for OPhone 2.5 and OPhone 3.0.
As of today, China Mobile has introduced a number of OPhone-based smartphones by partnering with some mobile manufacturers, but without any flagship products at various prices that could deliver outstanding user experience. Mr. Huang Xiaoqing says, “It is a big challenge for both the Research Institution of China Mobile and even the entire telecommunication industry in China. It’s about how the nationwide industry could evolve and catch up with the world’s leading technology in an open-source environment.”
According to Mr. Huang, terminal testing results proved that OPhone 2.0, following OPhone 1.0 and 1.5, had been built with an industry-leading performance enabling a wide range of mobile phone functionalities. China Mobile has now been working on the development of OPhone 2.5 and 3.0. He expressed his ambition that the new versions could “be in the world’s leading position”.
While developing upgraded versions of OPhone OS, China Mobile has incorporated the target to develop low-price terminals into its OPhone roadmap. Mr. Huang explained, “There are quite many OPhone mobile phones on the market, but most of them are too much expensive. It has been one of our goals to cut down the price of OPhone mobile phones to 1,000 Yuan or below, equivalent to that of ordinary mobile terminals, but without sacrificing user experience.”
Leadcore, a China-based chip manufacturer, is reported to have launched the first OPhone-based TD-SCDMA single-chip smartphone solution for OPhone smartphones priced at RMB 1,000 Yuan. Industry experts estimate that China Mobile might be able to launch some OPhone-based smart phones priced at RMB 1,000 Yuan or even below at year-end of 2010 and beginning of 2011 in a joint effort with some partners from its industry chain.
OPhone is a smartphone operating system based on Google Android. At the end of August 2009, China Mobile launched OPhone platform in three versions successively, including OPhone 1.0, 1.5 and 2.0. As of now, more than 20 mobile manufacturers in/outside China has joined the camp of OPhone and launched many popular OPhone-based mobile phones.
China becoming the lead market for mobile Internet in 2012/13
Update: China government not expected to issue TD-LTE operating license for the time being [Jan 16, 2012]
While China Mobile has been actively promoting TD-LTE, the China government is not expected to issue a TD-LTE operating license to China Mobile for the time being, according to industry sources.
China Mobile finished initial TD-LTE trials in seven selected cities in China around the end of 2011 and has proposed a second-round of trials, but the China government has not yet approved the plans, signaling the government’s attitude to slow down promotion of TD-LTE in China, the sources indicated.
This is because 3G mobile communication services are taking off in the China market and therefore the government does not want to issue a TD-LTE operating license out of consideration for China Telecom and China Unicom, the sources said.
China in Smartphone Lead [Nov 24, 2011]
China overtook the U.S. as the world’s largest smartphone market by volume in the third quarter, according to a report by research firm Strategy Analytics.
Deliveries of smart phones to operators and retailers in China grew 58% in the third quarter from the previous quarter to 24 million units. That surpassed 23 million units delivered to the U.S. market, down 7% from the previous quarter …
Nokia Corp. had the largest share of China’s smartphone market in the third quarter, with 29%. … Samsung Electronics Co. Ltd. is chasing hard with 18% of the Chinese market …
Strategy Analytics said that China is now at the forefront of the worldwide mobile computing boom and has become a large and growing smartphone market that no hardware vendor, component maker or content developer can afford to ignore. …
Strategy Analytics estimates that 57% of the world’s handsets were manufactured in China in 2010. … two of Nokia’s eight production facilities are based in China and the company said China is also one of its bigger suppliers of mobile handset components.
HSPA+ and LTE Investment Key to Operator Profitability [Strategy Analytics press release, Nov 29, 2011]
In its latest Wireless Operator Strategies (WOS) report, “Outlook & Forecast: How HSPA+ and LTE Investments will save Mobile Operator Profits,” Strategy Analytics projects the impact of HSPA+ and LTE investments on operator margins through 2016. Successful operators will be those who accelerate investment in next generation infrastructure in response to the dramatic growth in Broadband data demand. The race is on to reduce cost per Gigabyte (GB) to match the rate at which revenue per GB is falling. Operators who invest early in next generation HSPA+ and LTE infrastructure will see improvements in gross margins after 2014
VAS and mobile internet in China [Nov 24, 2011]
See as well the slides at http://www.mforum.ru/news/article/099412.htm
China Telcos Announce October 2011 Subscriber Totals [Marbridge Daily, Nov 21, 2011]
China’s three main telecom operators have announced their subscriber totals for October 2011.
October saw the net addition of 12.05 mln new mobile subscribers. China Mobile (NYSE: CHL; 0941.HK) added 5.37 mln new mobile subscribers, pushing the operator’s total mobile user base to 638.89 mln, of which a total of 45.33 mln subscribers used China Mobile’s TD-SCDMA terminals during the month. China Mobile added 2.17 mln new TD-SCDMA subscribers in October.
China Unicom (NYSE: CHU; 0762.HK; 600050.SH) added 3.34 mln new mobile subscribers, bringing its total to 192.38 mln. Of the new mobile subs added, 0.42 mln were GSM subscribers, bringing China Unicom’s total GSM user base to 159.23 mln, and 2.92 mln were WCDMA subscribers, pushing the company’s total WCDMA user base to 33.15 mln subscribers.
China Telecom (NYSE: CHA; 0728.HK) added 3.34 mln CDMA subs, taking its total to 120.29 mln, of which 31.19 mln were CDMA2000 EV-DO subscribers. China Telecom added 2.76 mln new CDMA2000 EV-DO subscribers in October.
Of the combined total of 109.67 mln 3G subs, China Mobile holds 41.3%, China Unicom 30.2%, and China Telecom 28.4%. Of total new mobile subs added in October, China Mobile took 44.57%, dropping its share of China’s total mobile user base to 67.14%. China Unicom’s share of the total mobile user base rose to 20.22%, while China Telecom’s share increased for the 34th straight month, rising from 12.45% at the end of September to 12.64% at the end of October.
China Telecom lost 560,000 fixed-line subs, reducing its total to 170.4 mln, and China Unicom lost 278,000 fixed-line subs, dropping its total to 94.3 mln.
China Telecom added 1.07 mln new broadband subscribers to reach 74.76 mln, and China Unicom added 512,000 new broadband subs to reach 55.05 mln.
Analysys International: Chinese Mobile Internet Users Reached 370 Million in 2011 Q2 [Nov 14, 2011]
According to the EnfoDesk recently released by Analysys International, the number of domestic [mobile] internet users was 369 million in Q2, 2011, with a sequential growth rate being 7.6% and a year-on-year increase of 72.3%.
In terms of 3G mobile Internet, however, there is a huge potential for growth. Taking just the global 3G technology leader W-CDMA against the home-grown TD-SCDMA:
– As at 30 June 2011, the total number of subscribers of the China Unicom reached 181.61 million, an increase of 15.7% over the same period last year. Not much considering that the penetration rate of W-CDMA subscribers reached is still 13.2%. (From: China Unicom (Hong Kong) Limited Announces 2011 Interim Results [Aug 24, 2011])
– For China Telecom (CDMA and CDMA 200 EV-DO for 3G) the total number of subscribers reached 120.29 million, of which 31.19 million were 3G subscribers, i.e. 25.9% of the subscriber base. (From the above Marbridge Daily report)
– Meanwhile at 30 June 2011, the total number of subscribers of the China Mobile reached 616.79 million and the penetration rate of TD-SCDMA subscribers reached 5.7% only. (Here and below from: China Mobile Operation Operation Data – Customer Numbers)
– At the end of October 2011 China Mobile had 638.889 million subscribers and the number of 3G subscribers was still just 7.1% of the whole subscriber base.
– Considering the monthly 3G subscriber data from the corresponding operators (till October 2011) we can clearly see that China Mobile’s TD-SCDMA is not only underperforming against China Unicom’s W-CDMA, but that underperformance is getting worse month after month:
The consequence is that the #1 global operator, China Mobile, is fast moving towards a combined 3G/4G strategy now:
China Mobile to add 10,000-20,000 TD-LTE base stations in 2012 [Nov 21, 2011]
China Mobile will set up 10,000-20,000 additional TD-LTE base stations around China in 2012, according to company vice chairman Xi Guohua.
Under the auspices of the China government, China Mobile has been establishing TD-LTE experimental networks in six cities in China and has set up more than 850 base stations in total, Xi indicated. In addition, 50% of China Mobile’ 250,000 TD-SCDMA base stations around China can be gradually upgraded to TD-LTE, Xi said.
China Mobile has been promoting international adoption of TD-LTE through cooperation with mobile telecom carriers in North America, Europe and Asia, with more than 30 TD-LTE experimental networks completed or under establishment as of the end of October 2011, Xi indicated.
Taiwan-based companies are expected to play an important role in China Mobile’s promotion of TD-LTE, Xi said. For example, Taiwan-based IC design house MediaTek has completed development of TD-LTE/3G and FDD-LTE/3G chips for use in smartphones and Quanta Computer has finished development of TD-LTE network interface cards and TD-LTE-enabled tablet PCs.
TDD Camp Sets Out Global Ambitions [Nov 17, 2011]
“Our belief is, LTE is the next GSM,” Bill Huang, general manager of China Mobile Ltd. (NYSE: CHL)’s Research Institute, told a packed seminar organized by Global TD-LTE Initiative(GTI), the industry body set up to promote the technology.
Huang said that by 2013, GTI’s operator members will have 39 percent of the world’s mobile population covered. “But I think it’s not enough. We can cover 50 percent by 2015, or something close to that.”
He also thinks China Mobile should go head-to-head with fixed-line broadband using TDD, “as long as we can get our costs down.”
…
China Mobile guided the technology through the 3rd Generation Partnership Project (3GPP) standards process and was instrumental in gaining the support of other influential operators such as Japan’s SoftBank Mobile Corp. , India’s Bharti Airtel Ltd. (Mumbai: BHARTIARTL) and Vodafone Group plc (NYSE: VOD).
In addition, China Mobile helped form the GTI, headed by former GSMA chairman Craig Erlich, and persuaded some WiMax operators, such as Malaysia’s Packet One Networks (Malaysia) Sdn Bhd. (P1) and Australia’s vividwireless Pty Ltd. to climb aboard. (See P1 Joins Global LTE TDD Group, Another WiMax Operator Converts to LTE, Going WiMax to LTE Down Under and GSMA Names New Chairman.)
…
LTE TDD’s big draw is that it can be deployed by those operators holding licenses for unpaired spectrum, which is currently used to provide WiMax services. FDD’s paired channels work well for voice but are wasteful for data, which is mostly asymmetrical in nature. Additionally, the guard bands in FDD mean up to 30 percent of it is not used, compared with about 10 percent for TDD.
Those capabilities, and the availability of unpaired spectrum, has resulted in a growing interest in LTE TDD — something reflected in the rising prices paid in spectrum auctions, according to Donald Lu, Beijing-based executive director of global investment research for Goldman Sachs & Co.“It’s the unpaired spectrum that has made the difference. The value of unpaired has increased by comparison to paired,” he said.
That said, the majority of awarded spectrum is of the FDD variety: Of the 185 LTE network projects underway globally, just 33 are trialing LTE TDD and of those only about 10 have absolutely committed to the technology, according to the Global Mobile Suppliers Association (GSA). And as Ovum’s McCormick notes, while the FDD players might supplement their existing spectrum with TDD licenses, they’re not going to switch from one to the other.
As a result the global LTE TDD market is not set to be enormous for the coming few years, at least while the ecosystem continues to grow. Goldman Sachs estimates that global LTE TDD capex will total US$15-20 billion during the 2012-2014 timeframe, while 40 million devices will likely be shipped.
China Mobile aims to complete next phase 4G trial by June [Reuters, Nov 15, 2011]
China Mobile expects to finish the second-phase of its fourth-generation (4G) network trials by June, a senior company executive said on Tuesday, as the world’s largest mobile carrier tries to boost its data services to attract high-end users.
China Mobile has built more than 850 base stations in six major cities in China and has made “remarkable progress” in its tests of the new-generation network technology based on TD-LTE platform, Li Zhengmao, an executive vice president, said at an event in Hong Kong. [LTE TDD/FDD International Summit 2011 Hong Kong GTI Summit, Nov 15, 2011]
“With the growing popularity of mobile Internet and smart devices, data consumption is increasing at an explosive speed, which has brought huge pressure to global mobile networks.”
“Under such a situation, the need to speed up the commercialisation of LTE is more compelling.”
China Mobile, the country’s biggest mobile carrier with 633.5 million subscribers — more than the entire population of North America — has been losing out to smaller rivals China Unicom and China Telecom in attracting higher-end 3G users.
China Unicom is the only official iPhone seller among the three Chinese carriers. China Mobile has 10 million iPhone users even though it does not have an agreement with Apple, but iPhone subscribers using the carrier do not have access to 3G download speeds.
Apple has been reluctant to strike a deal with China Mobile due to its inferior homegrown 3G technology called TD-SCDMA.
Apple has promised to make an iPhone compatible with China Mobile’s TD-LTE standard when its next-generation model comes out, the Chinese firm’s Chairman Wang Jianzhou told Reuters last month.
Li said seven telecom equipment makers and threechip makers participated in the first phase of the 4G trial. The Beijing-based carrier has begun purchasing TD-LTE devices, he said.
China Mobile and U.S. 4G operator Clearwire Corp have teamed up to develop high-speed mobile devices and infrastructure. Under their agreement China Mobile will work on chipsets and devices for TD-LTE that both companies are planning on using.
China Mobile and Clearwire Announce Collaboration on TD-LTE Devices [Clearwire press release, Sept 24, 2011]
China Mobile, the world’s largest mobile operator in terms of subscribers, and Clearwire Corporation (Nasdaq:CLWR), a leading provider of 4G wireless broadband services in the United States, today announced a collaboration to accelerate the development of TD-LTE devices. Specifically, the two companies agreed to work together to cultivate a robust device ecosystem that supports multi-mode, multi-band devices with minimum component complexity and cost.
China Mobile and Clearwire both support the global 2.5 GHz spectrum band for 4G deployments along with many other operators around the world. To date, both China Mobile and Clearwire have conducted successful TD-LTE trials and tests using commercially available / production-ready TD-LTE devices from numerous vendors. The two companies will work jointly to further accelerate the time-to-market availability of high volume TD-LTE chipsets and devices that should be commercially available starting in 2012. In addition, the two companies will collaborate to enable worldwide data roaming among TD-LTE, FDD-LTE and other 2G/3G networks.
“The availability and cost of TD-LTE devices are critical success factors for operators to deploy TD-LTE networks,” said Mr. Jianzhou Wang, Chairman of China Mobile Communications Corporation. “The cooperation with Clearwire will leverage economies of scale in the two largest markets in the world to speed up the development of TD-LTE devices. We anticipate the widest variety and most cost effective high performance devices – modems, routers, smart phones and tablets– to provide end users with affordable advanced mobile broadband services.”
“We expect to launch a next-generation LTE network that will offer more capacity than any other 4G network in the United States,” said John Stanton, Executive Chairman of Clearwire. “By working with China Mobile, we fully expect to benefit from a device ecosystem aimed to support billions of potential users worldwide. This unmatched scale should reduce costs and increase choices for our customers in the years ahead.”
Today’s announcement further supports Clearwire’s recent announcement of its intent to add LTE technology to its 4G network. By joining forces on TD-LTE technology, product, deployment and roaming solutions, China Mobile and Clearwire are well positioned to build a viable and competitive TD-LTE ecosystem for the highest demand 4G markets around the globe.
Clearwire gets a boost from China Mobile’s TD-LTE progress [Nov 15, 2011]
In an interview in September with FierceBroadbandWireless, Clearwire CTO John Saw said the primary goal of the partnership is to accelerate the development of a global multi-band, multi-mode chipset that incorporates frequencies between 2.3 GHz and 2.7 GHz. However, because Clearwire’s push into TD-LTE remains on hold while it searches for more funding, China Mobile’s progress is propelling the partnership forward.
…
The next phase for China Mobile is to have the network running for “large scale commercial” use, and the company plans to launch a network demonstration in Beijing’s main Chang An Street and in the city’s financial district. “4G handsets and data terminals are expected to be ready for mass production next year. We will launch 4G services commercially when both the network and devices are ready,” said Bill Huang, the general manager of China Mobile’s Research Institute, according to Dow Jones Newswires.
…
Clearwire, meanwhile, has said it needs $600 million to deploy TD-LTE over its mobile WiMAX footprint. Sprint Nextel (NYSE:S), Clearwire’s majority owner and largest wholesale customer, said it may use a portion of the $4 billion in debt it recently raised to fund Clearwire. Sprint also said last month that it signed a non-binding deal with Clearwire to jointly work on LTE network development. The agreement covers cell site selection, site builds, chipsets for devices and is intended to assure seamless handoffs between Sprint’s forthcoming LTE network and Clearwire’s LTE network.
Clearwire CEO Prusch: We Got Our ‘Big Three’ In Sprint Deal [Forbes, Dec 1, 2011]
In an interview with Forbes this afternoon, Prusch was practically gushing about the company’s new multi-part agreement with Sprint, a development that spurred a 14% jump in the company’s stock price today. Just a few days ago, there were worries that the company might decide not to make a $273 million interest payment on its debt that was due today. Today, the company not only made the payment on schedule, it also apparently reached a detente in its fractious relationship with majority owner Sprint.
“This is a significant event, a foundational event,” Prusch said. “This is the springboard for a lot of different things to occur.”
Prusch said the deal achieved three key objectives: it extends the company’s deal to provide WiMax service to Sprint; they got a commitment to support its planned rollout of LTE service over the current WiMax footprint; and they got a commitment for additional equity funding. “We’re excited about it, clearly,” he said, apparently with no pun intended. “It gives us an avenue to get our LTE build completed as we had suggested we wanted to do by the end of 2012 or the beginning of 2013.” It was, he adds, “a very important step” to have the company’s top shareholder getting behind the company’s expansion plan.
Sprint and Clearwire Announce New Agreements [joint press release, Dec 1, 2011]
– Offers Clearwire Up to $1.6 Billion in Conditional Aggregate Revenues and Funding
– Clearwire to Receive Total of $926 Million From Sprint for Unlimited 4G WiMAX Services in 2012 and 2013; WiMAX Network to Operate Through at Least 2015
– Sprint to Provide Support for Future LTE Services
– Companies Agree on Parameters for Additional Sprint Equity Investment
– Clearwire to Pay $237 Million Total Interest for First-Priority, Second-Priority and Exchangeable Notes as ScheduledOVERLAND PARK, Kan. and BELLEVUE, Wash. – Dec. 1, 2011 – Sprint Nextel (NYSE:S) and Clearwire(NASDAQ: CLWR)today announced agreements potentially worth up to $1.6 billion over the next four years in payments for WiMAX services, possible pre-payments for LTE services and potential equity investments. The agreements further align Clearwire’s LTE network build as a complement to Sprint’s Network Vision strategy.
Also today, Clearwire announced that it has made interest payments totaling $237 million on its first-priority, second-priority and exchangeable notes which were due Dec. 1, 2011.
“These agreements are a result of the technical MOU we outlined during our third quarter results call and extend our relationship with Clearwire,” said Dan Hesse, Sprint CEO. “It provides Sprint improved pricing, allows us to continue to provide WiMAX 4G services to our customers today and to new customers in the future and provides additional LTE capacity to help complement our Network Vision strategy and meet our customers’ growing data demands.”
“Today’s announcement further cements the mutually beneficial relationship between our two companies,” said Erik Prusch, president and CEO of Clearwire. “It is an important step toward meeting Clearwire’s key goals of extending our current 4G network arrangement, securing a commitment to our future LTE Advanced-ready network, and funding the business. We continue to move closer to realizing the full value of our deep spectrum resources as we are uniquely positioned to meet the rapidly growing demand for 4G mobile broadband.”
Wholesale Pricing and 4G Availability
The agreements modify prior wholesale pricing agreements and provide Sprint with unlimited access to Clearwire’s WiMAX network to meet its growing 4G data demands. Under the terms of the agreements, Sprint will pay Clearwire a total of $926 million, approximately two-thirds of which will be paid in 2012, for unlimited 4G WiMAX retail services during 2012 and 2013, subject to certain conditions. The agreements also establish long-term usage-based pricing for WiMAX services in 2014 and beyond. Sprint will have access to Clearwire’s WiMAX network through at least 2015. Sprint plans to continue selling WiMAX devices with two-year contracts through at least 2012 and support those devices through the life of the contract.
In addition, the agreement contains separate, competitive pricing for re-wholesaling by Sprint that provides flexibility for Sprint to grow its 4G WiMAX wholesale business while at the same time providing Clearwire increased pricing flexibility that should allow Clearwire to grow its wholesale markets and attract new customers.
TDD-LTE Collaboration
The agreements also lay the foundation for the deployment of Clearwire’s planned LTE Advanced-ready overlay network and outline the terms for Sprint to gain access to the additional LTE capacity. The TDD-LTE rollout will capitalize on Clearwire’s deep spectrum resources to deliver on 4G capacity needs over the long-term. Under the terms, Sprint will pay Clearwire up to $350 million in a series of prepayments over a period of up to two years for LTE capacity if Clearwire achieves certain build-out targets and network specifications by June 2013. The agreements also establish long-term usage-based pricing for LTE services for 2012 and beyond. The companies have agreed to collaborate on a network build plan and will jointly select LTE macro-cell sites to cover Sprint’s high usage area “hotspots.” Clearwire plans to seek additional funding before initiating the build-out of its LTE Advanced-ready network.
In addition, Clearwire and Sprint will work collaboratively to support the ecosystem for TDD-LTE in Band Class 41 for devices, chipsets and standards. Subject to the timing of the build-out and other factors, Sprint expects to launch devices including laptop cards and phones that will utilize Clearwire’s TDD-LTE network in 2013.
Equity Investment
Sprint has committed to providing additional equity funding to Clearwire in the event of an equity offering. If Clearwire raises new equity between $400 and $700 million, Sprint will participate in the offering on a pro rata basis up to $347 million, consistent with Sprint’s current voting interest of 49.6 percent on the same terms and conditions as other participating companies.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 53 million customers at the end of 3Q 2011 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 3 in its 2011 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at http://www.sprint.com or http://www.facebook.com/sprint and www.twitter.com/sprint.
About Clearwire
Clearwire Corporation (NASDAQ:CLWR), through its operating subsidiaries, is a leading provider of mobile broadband services. Clearwire’s 4G network currently provides coverage in areas of the U.S. where more than 130 million people live. Clearwire’s open all-IP network, combined with significant spectrum holdings, provides an unprecedented combination of speed and mobility to deliver next generation broadband access. The company markets its 4G service through its own brand called CLEAR® as well as through its wholesale relationships with companies such as Sprint, Comcast, Time Warner Cable, Locus Telecommunications, Cbeyond, Mitel, Best Buy and United Online. Strategic investors include Intel Capital, Comcast, Sprint, Google, Time Warner Cable, and Bright House Networks. Clearwire is headquartered in Bellevue, Wash. Additional information is available at http://www.clearwire.com.
GSMA: Dual-Mode a Must for LTE Devices [Nov 16, 2011]
For Long Term Evolution (LTE) to succeed, it’s “absolutely critical” that devices be able to support both the TDD and FDD versions of the next-generation mobile technology, according to GSM Association (GSMA) Director General Anne Bouverot.
Bouverot told a conference held by the Global TD-LTE Initiative (GTI), an industry group promoting Long Term Evolution Time Division Duplex (LTE TDD), that it was not enough just to get the products to market.
…
The chipsets are the key. Only four chip vendors — mostly startups — designed and built TD-SCDMA chips, points out Bill Huang, general manager of China Mobile Ltd.’s Research Institute.
Now, though, around 16 chip specialists, including Qualcomm Inc. (Nasdaq: QCOM), ST-Ericsson and Sequans Communications , are doing “various kind of baseband” for LTE TDD, Huang stated.
To date around 35 LTE TDD terminals (mostly data cards or MyFi-style hotspots) have been developed, while ZTE Corp. has already produced a dual-mode card.
But Huang said the problem is not whether the two 3GPP standards will be combined into one chipset, but whether the chips can support all the required spectrum bands. “The question is: What spectrum from TDD or what spectrum from FDD that [the chip] will support?” stated the China Mobile man. “We now have six spectrum bands identified that will cover maybe 80 percent of the world — we may increase that to eight bands to get 100 percent coverage.”
Internet giants have taken over from pure mobile internet players [Nov 11, 2011]
According to data provided by China Mobile, the internet giants, that’s to say Tencent, Baidu and Sina, have become the leading players in the mobile internet market, boosting traffic levels and overtaking the pioneering pure mobile internet players in their respective sectors (See Exhibit 1 below).
Exhibit 1: Traffic of the Top Fifteen Mobile Internet Players (Unit: TB)
Note: 1) By China Mobile we mean related sites such as the Monternet homepage, reading and Mobile Market sites. 2) The highlighted companies are internet players who aim the bulk of their services at the traditional PC-based internet.
Source: China Mobile. Figures are based on traffic data for Fujian, Guangdong, Henan, Jiangsu and Shanghai in August 2011 and August 2010.In the portal sector, both Tencent and Sina have supplanted 3g.cn, the previous market leader specifying on WAP portal. Sina, it should be noted, lagged a long way behind 3g.cn a year ago in terms of traffic (15.1 TB vs. 28.5TB). In the search market, Baidu and Soso more than doubled their traffic within a year and are now much larger than Easou, once the market leader. Easou’s traffic shrank to less than 50% of its previous level. Ecommerce is also extending from internet to mobile internet space. Taobao, the dominant B2C and C2C site, China’s third largest internet site in terms of traffic, secured itself 14th place in the mobile internet industry in August 2011, proof of a dramatic take-off in traffic. Furthermore, transaction volume has also rocketed. Unveiled in 2009, Taobao’s mobile site expects to have a turnover above RMB 10 billion in 2011, up from RMB 1.8 billion and RMB 0.25 billion in 2010 and 2009 respectively.
There are three main reasons for the significant changes in the past year:
- Internet applications and content perform much better on the large-screen smartphones and tablets that have come into widespread use in the past two years. The launch of the iPhone proved to be a critical turning point. Users now find little difference between accessing websites through a PC and through portal devices.
- Internet giants are eagerly promoting services/applications for mobile users. For example, Tencent has launched various SMS+IM packages leveraging its 700 Million strong QQ user base, and Sina has invested heavily in its SMS+weibo (twitter type) service.
- Pure mobile internet players lack differentiation and diversification. Pioneer mobile service providers, for example 3g.cn and Easou, rely totally on mobile ads on WAP sites or search portals. They lack product lines such as SNS, IM, or games which feature high user stickiness.
Among above mobile internet companies, there are a few exceptional cases which are still well positioned and report strong uptake:
- UCWeb has maintained No.2 position thanks to its popular mobile browser. Despite the rapid growth of various App Stores, the mobile browser is still the main access point for mobile internet content. Tencent has in turn unveiled its QQ browser, aiming to gain some share of the market.
- The mobile SNS site Lexun has remained the leader in this sector, unaffected by rapidly growing internet SNS services, such as Renren and Kaixin. However, overall traffic growth on mobile SNS sites remains flat, in contrast to the significant take-off of the mobile internet as a whole.
Looking forward, mobile internet market will see fiercer competition and more players expanding to mobile internet sector with their popular internet applications.
China’s app growth is up by 840% in 2011 [Nov 4, 2011]
China’s mobile applicationmarket is now the second largest in the world, according to research.
Analyticsfirm, Flurry, found that China has had an 840% increase in app usage during this year. The growth is four times more than the rate experienced by other countries.
The country now ranks behind the United Statesin the stakes to become number 1 in the apps market.
Countries within Asiawere also featured in the top 10 of biggest growers, with India at 398% and Thailand at 351%.
China’s growth could be due to the country’s increasing affluence for middle class people, meaning more people are starting to own smartphones.
Peter Farago from Flurry said: “While the top 100 countries are averaging session growth of over 200%, China is delivering more than four times this growth rate, spurred by a massive population voraciously adopting applications.”
Flurry also found that the United States have suffered a decrease in activity, meaning China could overtake the country in the bid to be the top country for app usage by 2013.
The findings are based on the number of customers that downloaded apps from their country’s store, along with how long customers spend on the apps stores.
Farago continued: “As one of the fastest modernizing and largest countries in the world, the adoption of mobile apps in China is unprecedented. Whether studying China by existing app session generated or new demand for apps, the growth rates are similar.”
To learn more about the future of multiplatform apps and how marketers, developers, businesses, brands and operators are benefiting from the market’s rapid growth, visit www.apps-world.net/europe on 29-30 November in London and hear from leading global brands and industry experts.
Smartphones making rapid headway in cities [China Daily, Nov 11, 2011]
About 35 percent of urban Chinese use smartphones, the third-highest level in the world, a survey has found.
China’s smartphone adoption rate follows Singapore’s 62 percent and Australia’s 37 percent, according to the survey by Google Inc and research company Ipsos, which was based on 30,000 interviewees from 30 countries and regions.
“If you consider that the device didn’t exist more than five years ago, the fact that already one-third of the population in the cities has it is actually quite remarkable,” said Ryan Hayward, Asia-Pacific mobile product marketing manager of Google.
“When we look back at how long it took for people to adopt radio and TV, I doubt that one in three had them within four years. That just didn’t happen.”
The survey covered 2,000 people in seven large cities: Shenyang, Beijing, Shanghai, Xi’an, Chengdu, Wuhan and Guangzhou.
“People living in first- and second-tier cities change their mobile phones relatively often,” said Wang Ying, an analyst with domestic research company Analysys International.
“Economic development in the cities has spurred residents’ demand for smartphones, which in turn, led to mobile carriers’ initiatives to promote smartphones,” she added.
Urban Chinese consumers are also most likely to own multiple mobile phones, whether smartphones or regular feature phones. One out of three people in urban China have at least two smartphones, a proportion that is the highest in the Asia-Pacific region, according to the report.
The wide adoption of smartphones has been partly boosted by China’s construction of a third-generation (3G) networks, which which have improved the user experience for smartphone owners with higher speed.
China had more than 100 million 3G users at the end of September, representing more than 10 percent of total mobile phone subscribers, according to the Ministry of Industry and Information Technology.
The smartphone adoption level is probably less than 20 percent nationwide, however, taking less-developed cities and rural areas into account, said Wang. The market needs to be further tapped as these areas gradually adopt 3G networks and people there change mobile phones.
In areas that require advanced technology, such as cloud computing, the US will continue to be a leader for a long time. But in other areas, such as social applications, games and mobile Internet services, there will be promising companies emerging in China in the coming years, Kai-Fu Lee, former head of Google China, said last month at an industry forum in Beijing.
China spurs growth of mobile Internet [China Daily, Nov 1, 2011]
A senior expert said Monday that China will take greater strides in promoting the development of its mobile Internet sector.
Wang Xiujun, chief engineer of the Ministry of Industry and Information Technology (MIIT), said that the government will step up policy support for mobile Internet because it “promotes industrial integration and leads to revolutionary changes in development and technology.”
Wang said the country will speed up comprehensive upgrades for its information networks and boost the development of third-generation technology (3G), especially homegrown TD variants of 3G and LTE (long-term evolution) technology.
Along with the development of information networks, the innovation and development of integrated technologies and businesses should also be highlighted, Wang said during the ongoing fifth International Mobile Internet Conference, which opened Monday in Beijing.
Wang said that the Chinese government will attach more importance to the protection of users’ personal information and their rightful interests and maintain a healthy environment for the development of the mobile Internet sector.
The two-day meeting is sponsored by China Mobile, the world’s largest telecommunications firm by number of users.
“The development speed of mobile Internet is far quicker than what we imagined. Mobile Internet is becoming a reality, and is deeply changing our habits and behaviors,” a statement on the firm’s website said.
The statement said mobile Internet has also had a great impact on the traditional operation and business modules of the mobile telecommunications industry.
MIIT data showed that the number of Chinese mobile phone users hit 952.31 million by the end of September, 102.46 million of whom are 3G users.
According to the China Internet Networks Information Center (CNNIC), the number of netizens in China reached 485 million by the end of June this year. As of the end of 2010, the number of people who accessed the Internet through mobile phones had already reached 303 million.
Mobile Internet users are even expected to outnumber those who access the Internet through computers next year, according to Enfodesk, a think tank engaged in researching of new media economics in China.
Li Zhengmao, China Mobile’s vice president, said the production of smart mobile phones has jumped 50 percent year-on-year globally. Li added that the continuous development and deepened applications of 3G and LTE technologies means that mobile Internet has entered a new phase for rapid growth.
With more than 630 million subscribers, China Mobilehas been pushing for the country’s homegrown 4G standard, known as TD-LTE, or “Time Division-Long Term Evolution,” to become a globally accepted standard.
Huang Xiaoqing, who heads China Mobile’s telecommunications research institute, said the TD-LTE technology will substantially lower bandwidth costs. He said the technology will provide faster broadband wireless services to meet future demand that the current 3G network would be unable to deliver.
China Mobile also announced Friday the incorporation of a new company to accelerate its development of 3G and smartphone technology.
The subsidiary, China Mobile Terminal Co Ltd, will handle customization, testing, procurement, sales and service for the group’s third-generation (3G) devices. The new firm will also speed up the research and development of TD-LTE.
Market Scale of China Mobile Internet Grows to 10.83 Billion Yuan in Q3 2011, Showing Huge Development Potential [Nov 15, 2011]
According to the data of iResearch, market scale of mobile Internet reaches to 10.83 billion in Q3 2011, up 154.6% year-on-year and 38.9% quarter-on-quarter. Meanwhile, growth rate of mobile Internet increases nearly 18% compared with last quarter.
iResearch views competition among mobile devices and mobile operation systems is more fierce, which will accelerate popularity of smart phones and lead growth rate of mobile Internet to a new peak. Besides, traditional Internet enterprises all invest more in mobile Internet, and new applications and commercial modes also attract more companies to participant in the mobile Internet market, which helps growth of the market segments.
Changing track of mobile Internet segments in Q3 is similar to Q2 2011. Share of mobile value-added service market in the mobile Internet will further fall to 43.7% while share of mobile ecommerce obviously become bigger, up to 34.8% from 27.9% in the second quarter. Moreover, with higher awareness of advertisers, development of mobile advertisement network enterprises and increasing number of mobile device users, market scale of mobile advertisement rises to 10.3% from 9.5% in the second quarter. In the other segments, mobile value-added service, mobile games and mobile search develop steadily and their share falls slightly. Mobile Internet market segments will face balanced development.
Mobile value-added service increases 17.7% quarter-on-quarter, which is attributed to the following reasons: Firstly, mobile operators enhance the development of value-added service and pay more attention to product integration. Secondly, a variety of new applications such as mobile reading, mobile instant messaging and location based service develop rapidly and bring more revenue. Therefore, iResearch considers new applications in the mobile Internet develop well and have more users while most commercial modes aren’t mature. As a result, new applications don’t do much contribution to mobile Internet.
Mobile ecommerce maintains strong growth, up 508.1% compared with Q3 2010. It has become a main driving power for the growth of mobile Internet owing to the following reasons: Firstly, traditional ecommerce websites have operated mobile terminals and increased marketing efforts in order to attract a large quantity of users to generate buy deeds. Secondly, some large B2C websites support cash on delivery (COD) instead of mobile payment, which solve the payment problem of many users. Finally, applications of mobile ecommerce more efficiently improve users’ experience and maintain the relationship with clients. Therefore, iResearch holds China mobile ecommerce has showed a trend of accelerated development in Q3 2011 and its share will continue to increase in the future.
As the mobile phones jump into the third generation from the second generation, mobile advertisement as a new marketing method is developing in the content and form. Up to now, advertisers have more mature awareness of mobile advertisement and companies, which provide free applications depending on advertisement platform, achieve profitability. Traditional Internet enterprises expand their business to mobile Internet, producing new demand of marketing and motivate development of mobile advertisement.
Based on the state of mobile Internet market in the third quarter, iResearch views mobile Internet market will continue to rapidly increase in the fourth quarter 2011. In mobile Internet segments, share of mobile ecommerce will expand and Q4 market scale of mobile ecommerce will keep growth rate of 90% or more because mobile ecommerce is attached much attention by traditional ecommerce enterprises and users have gradually cultivated the habit of mobile online shopping; Mobile advertisement will rapidly grow in the process of exploration because it has solved the problem in the profit model of mobile medial even though it remains in the initial stage; Traditional mobile value-added service will develop steadily; Mobile reading and mobile video remain in the search of profit model and may give initial result in the fourth quarter; Mobile games will have a slower growth compared with other mobile Internet segments.
About iResearch
iResearch is China’s leading internet research company, dedicated to providing high quality products and services to deepen our clients’ understanding of China’s internet industry.
For more information, please visit www.iresearchchina.com.
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More Views & Reports www.iresearchchina.com/report.aspx.
CNC report from Beijing [Sept 15, 2011]
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By the end of 2010, cell phone internet subscribers reached 303 million in China – accounting for 66 percent of total internet users in the country.
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Weibo is China’ s version of Twitter.It’ s the most popular online social media site in the country. And, one of the major reasons many people in China began logging on more frequently.
As of June, the number of Chinese people using Weibo and other blog sites reached 195 million – an increase of 209 percent in just one year!
And, just like Twitter, many users have become addicted.
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TITLE: THE FUTURE OF MOBILE WEB IN CHINA
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Some of the most influential leaders of the mobile internet industry in China recently gathered in Beijing for the China Mobile Internet Industry Investment Forum.
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Mobile internet is quite new in China.In fact, it wasn’t introduced until 2009.
As a result, some people in the country are weary of the new technology.
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Education is key, but something many people won’t receive until they can afford to try out the technology.And, the cost of mobile internet in China, is preventing many people from making the purchase.
SOUNDBITE(CHINESE): HOU WEIWEI, OFFICE STAFF
“It costs me about 3 US dollars per month for a 250 Mbyte package. I have to pay extra bills if I surf the net too much, so I would have to go to places that offer free Wi-Fi.”The cost of the service isn’t the only complaint from customers.
Many people don’t like the high cost of apps that are needed to take full advantage of mobile technology.
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Price. Education. And, other hiccups in the expansion of the mobile internet industry are constant topics of discussion at events like the China Mobile Internet Industry Investment Forum.
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The number of mobile internet users in China is expected to reach an estimated 800 million people within 5 years!
Picture: Mobile Internet is innovation and entrepreneurship and investment boom [Aug 29, 2011]
China Internet Network Information Center released the <<28th China Internet Development Statistics Report>>, as of June this year, China’s mobile phone users reached 318 million, accounting for 65.6% of the total number of Internet users. Most of the increase in business class application remains such as the online shopping rate increased to 35.6%, 12.15 million new users six months, the user growth rate of 7.6% in six months.
CCID Consulting: China’s Mobile Internet Industry Sees Equal Strengths in South and North with Rise in West [Aug 25, 2011]
BEIJING–(BUSINESS WIRE)–Mobile Internet, an integral part of the new-generation information technology, has been recognized as one of China’s strategic emerging industries and given priority by China’s Ministry of Information and Technology in its 12th Five-Year Plan scheme. As such, CCID Consulting has drawn a map of China’s mobile Internet industry in the coming years based on analyses on its current characteristics and growth trends.
“One Belt (the Circum-Bohai Sea, the Yangtze River Delta and the Pearl River Delta in a line) Plus One Triangle (the West Triangle)”
Equal Strengths in South and North with Rise in West; Guangdong Province Taking the Lead
In 2010, China’s mobile Internet industrial recorded an output value of RMB 293.69 billion, to which the four major regions, namely the Pearl River Delta in the south, the Circum-Bohai Sea in the north, the Yangtze River Delta in the east and the West Triangle centered on Chengdu, Chongqing and Xi’an, contributed over 90 percent.
Figure 1 China’s Mobile Internet Industry Size
http://event.ccidconsulting.com/en/images/en-0824-1.jpg
Source: CCID Consulting Mobile Internet Industry Database, May 2011In China, Guangdong Province is the champion in the mobile Internet industry with an annual output value of more than RMB 100 billion leveraging its strength in terminal manufacturing; the Circum-Bohai Sea is China’s second largest mobile Internet base with significant strengths in mobile terminal manufacturing, mobile Internet software and services; the Yangtze River Delta is also of great importance to China’s mobile Internet industry, which is strong in mobile Internet-related software and services, but relatively weak in terminal manufacturing; the West Triangle is enjoying the greatest growth potential in China’s mobile Internet industry.
“One Belt Plus One Triangle”
The layout of China’s mobile Internet industry is described as “One Belt (the Circum-Bohai Sea, the Yangtze River Delta and the Pearl River Delta in a line) Plus One Triangle (the West Triangle)”. The major cities on “One Belt Plus One Triangle”, including Beijing, Guangzhou, Shenzhen and Hangzhou in the east and Chongqing, Chengdu and Xi’an in the west, are all well equipped in industrial development conditions to support the mobile Internet industry
Figure 2 Key Cities of China’s Mobile Internet Industry
http://event.ccidconsulting.com/en/images/en-0824-2.jpg
Source: CCID Consulting Mobile Internet Industry Database, May 2011Overall Development with Highlighted Clusters and Evolution in Echelons in Future
In the coming decade, China’s mobile Internet industry will usher in an age of overall development as its industrialization advances to facilitate the transformation of the telecommunications and Internet industries, while the existing industrial clusters will remain the focuses of the industry.
Meanwhile, the evolution of the mobile Internet industry will feature multiple echelons at different growth levels. The first echelon will include the Circum-Bohai Sea, the Yangtze River Delta and the West Triangle, with Beijing, Shanghai, Hangzhou, Shenzhen, Guangzhou, Chengdu, and Chongqing staying in a leading position in the fields of mobile terminal design & manufacturing, mobile software and application R&D. Wuhan, Zhengzhou, Changsha, Xiamen and other second-tier major cities located in the second echelon of Wuhan-Changsha Cluster and the Western Taiwan Straits Economic Zone will specialize in mobile terminal manufacturing and mobile software and application development. Other provinces and regions including Yunnan, Guangxi, Shanxi, Inner Mongolia, Gansu and Ningxia will start with infrastructures construction and promote mobile Internet applications with the local governments and operators playing a major role.
Mobile Terminal Manufacturing Sector to Shift to Lower-cost North and West
As the comprehensive cost in coastal cities stay high, the cost-sensitive mobile terminal manufacturing sector has accelerated its shift to Central and Western regions with lower labor and operation costs. For example, the leading OEM Foxconn has shifted part of its capacities to Henan, Shandong, Sichuan and Chongqing. In addition, the related upstream and downstream sectors including chip manufacturing and mold manufacturing will follow the same trend.
Mobile Software and Application Sector to Continue Relying on Industry-Academy-Research-Application Chain
The mobile software and application sector, both intelligence-intensive and capital-intensive, requires educated and highly skilled talents, innovative technologies as well as high market-penetration of software and applications. Hence, of the sector will continue to focus on major cities in the first echelon where the industry, academy, research, and application forces are tightly integrated.
About CCID Consulting Co., Ltd.
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated 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, Wuhan and Chengdu with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China. With its powerful industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services. The company’s customers range from industrial users in electronics, telecommunications, energy, finance and automobile to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming China’s No.1 advisor for enterprise management, No.1 consultancy for government decision and No.1 brand for informatization consulting.
New China-made smartphone unveiled [Xinhua, Aug 30, 2011]
A new smartphone made by a Chinese high-profile Internet startup has the potential to shake the world’s largest mobile phone market driving prices down for high-performance handsets.
The low-cost but high-specification phone was unveiled by Lei Jun, founder of Xiaomi Technology Co. that produced it, at a presentation in Beijing on Aug. 16.
Xiaomi Phone, which runs a MIUI ROM on top of Android, is 125mm x 63mm x 11.9mm in size and weighs 149 grams — so it’s both a little heavier and bigger than the iPhone 4.
Lei said that his phone stands out with its fast dual core processor, big screen, high-quality signal, and large battery capacity.
But most impressively perhaps is its 1,999-yuan (313 U.S. dollars) price tag, 3,000 yuan cheaper than the iPhone 4.
“The success of Apple encourages others to follow suit. It has become a trend to promote platforms with terminals and promote App stores with platforms. The question is whether somebody else can be the winner after Apple,” said Sun Taoran, the founder of e-payment service company Lakala.
Lei, also board chairman of Chinese software company Kingsoft, has dismissed comparisons by Internet users between him and Apple’s just-retired CEO Steve Jobs, saying on his microblog that he didn’t imitate Jobs in clothing and “Jobs’ charm is matchless.”
But he did compare his phone with the iPhone several times during the product’s launch.
A total of 16.81 million smartphones were sold in the Chinese market in the second quarter of the year, up 7.5 percent from the previous three months, according to the IT consulting firm Analysys International.
Analysys has said that the number of smartphones sold in China could reach 95 million for this year.
Phones produced by Taiwan-based company HTC, Lenovo’s LePhone and the iPhone are among the best sellers in China.
Lenovo claimed recently in a report that it sold 34 percent more cellphones in the first quarter year-on-year. Its 2,900-yuan LePhone has been selling well, and, according to recent reports, through its sales the company holds a 10 percent share of the middle and high-end domestic smartphone market.
Also, Lenovo this month unveiled its second smartphone, the A60, which has a 88.9-mm touch screen and uses the Android 2.3 operating system, priced at 959 yuan.
But the real change in China’s smartphone market is that domestic Internet firms are starting to compete in it.
Last month Alibaba.com, a major Business-to-Business electronic commerce company, released its smart phone which runs “ALI cloud” OS.
Also, China’s online search giant Baidu is planning to launch its own mobile phone OS Qiushi.And the country’s leading web-portal Tencent is also working on its own brand Qphone mobile phone and operating system, according to Beijing-based International Herald Leader newspaper.
“The companies including Alibaba, Tencent and Baidu have successfully produced PCs. However, as people are spending more and more time on mobile terminals, their influence could decline,” said Li Yi, secretary general of the China Mobile Internet Industry Alliance.
Competition in the smartphone market may get fiercer as international competitors look to grab a bigger slice both in China and worldwide.
Google Inc. has agreed to buy Motorola Mobility Holdings Inc. for about 12.5 billion U.S. dollars, the largest purchase for the Internet search giant that will allow it to compete more directly with other mobile phone makers.By the end of the first quarter this year, Nokia, Apple and RIM, the leading three smart phone producers enjoyed more than a half stake in the global market. And it is estimated that more than 100 million smartphones were sold worldwide in the first quarter this year.
But, so far, Chinese companies have only captured a small piece of the global market.
Zhu Junmin, a Beijing-based telecom expert, said domestic companies’ smartphones are still lagging behind in terms of designing. “Foreign brands do better in industrial and user-oriented designing. Lack of innovation makes domestic companies to have to follow and imitate.”
Ma Zihui, chief economist of Samsung Economic Research Center also expressed his worries about the lack of novelty of domestic companies. “Without creativity, a company can hardly compete with foreign counterparts and make ideal profits.”
Survival of the smartest [Global Times, Aug 1, 2011]
For many months now, Beijing’s swankier cafes have been filled with people perusing the Internet not on a laptop computer but on their smartphones.
However, while the mobile Internet has taken off in China, it has remained dominated by foreign platforms, such as Apple’s iPhone OS, Google’s Android and RIM’s Blackberry – until now.
That could be set to change as Chinese companies prepare to launch their own operating systems (OS), with two Chinese companies launching smartphone OS products this month alone.
Xiaomi Tech, a high-tech company set up in April last year, launched MIUI, a system based on Android, on July 8 and plans to launch its own MIUI mobile phone – the M1 – in September. It is a new system with more than 100 personalized services, including free voice call options.
Xiaomi’s founder and CEO Lei Jun, who is also chairman of Chinese software developer Kingsoft and an angel investor in the mobile Internet sector, announced on July 12 that the company had attracted $41 million investment from Morningside Group, Qiming Venture Partners and IDG Capital. The company is valued at about $250 million.
Alibaba Group, China’s e-commerce giant, launched its Ali Cloud Mobile OS Thursday. The Ali Cloud Mobile OS uses cloud computing technology and not only uses Alibaba Group’s own text input software, search engine and e-mail, but also embeds its business services, such as group-buying business Juhuasuan, online retailing marketplace Taobao.com, mobile instant messaging service Ali Wangwang and online buyer community Taobao Girl.
The OS provides users with 8GB storage volume on the phone and over 100 GB storage space on the company’s cloud server side. Users don’t need to download software or applications, they just register to enjoy various applications developed by the company and other developers based on Android OS, with software and applications stored and run on the cloud server side.
Though China’s biggest Internet company Tencent has so far denied that it is developing its own smartphone OS, industry experts believe it is working on one.
“Tencent did a lot of market research on users’ expectations for its QPhone since 2009. Tencent hopes the QPhone brand can cover both the high-end market to compete with iPhone and Google’s Android phones and low-end market to compete with Nokia in China,” a Tencent marketing official said, requesting anonymity.
Tencent partnered with Intel in April 2010 to cooperate on Intel’s smartphone OS MeeGo. Tencent will carry out its own research and development based on the MeeGo OS to make it more suitable for the Chinese market and Tencent’s products and services, which in other words means MeeGo will be used in Tencent’s QPhone.
China’s biggest search engine Baidu also has plans for a smartphone OS. Rumors have swirled since last July that Baidu will launch its Android-based smartphone OS in November this year.
China Mobile started earlier than the country’s Internet giants. It put its OMS (Open Mobile System) into commercial use in 2009. Currently many handset manufacturers produce customized terminals using the system for China Mobile, including Motorola, HTC, Lenovo Mobile and Dell.
Crucial moment
But why are so many big companies rushing to enter what is already a fiercely competitive sector?
“Smartphone OS is the way forward in the mobile Internet industry. Just like the importance of the PC-based Windows OS for the Internet industry, how the smartphone OS field develops is very important for the future market structure and competition pattern,” Chen Yanshu, analyst of IT market research company eShip Consulting said.
Once a company has the advantage in the competition between the different smartphone OS, it can attract more users and application developers and develop new business models based on these resources.
“Selling applications to users through mobile phone application stores is a popular business model now. If a company’s smartphone OS gains more support from users and developers, it will attract more and more other users and developers, which means it has more potential buyers,” said Chen.
“Handset manufacturers, telecom operators and application developers will all cooperate together. But in the ever-changing mobile Internet sector, more and more business models will appear. No one wants to miss this chance. So they have all started to develop a smartphone OS to try to occupy the entrance.”
Multilevel competitionHowever, achieving market-leader position is far from easy.
“Currently, the competition in China’s smartphone OS area is happening in two dimensions, between industries and between domestic companies and international giants,” Chen said.
Domestic IT and Internet giants are very active in developing smart phone OS because they own a lot of content and applications.
Alibaba Group has established a sound ecosystem in its e-commerce business, which has 370 million registered C2C buyers and sellers, an excellent online payment system, widely used instant messaging services and many others. But the company is looking to shift all this onto the mobile Internet via a smartphone OS.
Tencent has 647 million users of its instant messaging service QQ. Its online community, microblogging, online shopping mall and online games can also be migrated to mobile Internet. The same is true for Baidu’s search engine, map service, location based services, video broadcasting service and so on.
But the difficulties for IT and Internet companies are huge.“The mobile Internet is very different from the standard Internet. On the standard Internet, things are more open and a company can get users only if it provides excellent products and services. But in the mobile Internet industry, there are many more participants, such as telecom operators, mobile phone chipset manufacturers, mobile phone designers and manufacturers and application software developers,” said Chen.
“The competition is not simply in better products and services to users, but also related to partners, negotiation ability, the business ecosystem construction and many others. This is a new problem for IT and Internet giants. Just copying what they did in the past won’t get them success.”
China’s domestic mobile phone manufacturers are not as strong as international giants such as Nokia and Google and have lagged behind in developing a smartphone OS, according to Chen.
“They cooperate with telecom operators. Lack of power is one reason. Another reason is that traditionally the telecom operators are at the top of mobile Internet industry. The mobile Internet is accessed over their networks. They have big influence on the industry. But what they don’t have is what the IT and Internet giants do have – content and applications,” Chen said.
Samsung push for bada in 2012 and other Linux based devices–with Tizen UPDATE: 1st Tizen devices in 2013
‘bada’ = the Korean word for ‘ocean.’
It is a Linux based proprietary operating system by Samsung which is otherwise rooted in MOCHA (Modular & Configurable Handset S/W Architecture), later evolved into SHP (Samsung Handset Platform) on which the bada OS has been running since 2010 as the smartphone enhancement of the SHP.
Samsung also started a longer term pure Linux based mobile platform development effort in 2007 with the LiMO Foundation (XO v1.0) which has evolved into Samsung Linux Platform (SLP) the v2.0 version of which became LiMo Release 2 and as such the platform for Vodafone 360 smartphones in late 2009.
As the Android tide has killed the Vodafone 360 and similar carrier initiated smartphone platforms Samsung made an alliance with Intel in which SLP and MeeGo will form the basis of a new open source, Linux based device platform, called Tizen, targeted for HTML5/WAC applications. See the Tizen article on Wikipedia for independent and community based description continuously updated, as well as the Tizen project site (tizen.org) site and the related Tizen Association site from the industry consortium dedicated to providing in-market support and actively shaping the industry presence of Tizen.
The latest state of the Tizen effort has been described in:
Update: Tizen 2.0 Magnolia SDK and Source Code Release [Tizen project, Feb 18, 2013] (see also the Tizen 2.0 Release Notes)
We are pleased to announce that Tizen 2.0 source code and SDK are now available at https://developer.tizen.org/downloads/sdk. Tizen 2.0 represents a major milestone for software developers and device vendors. We encourage you to download the new SDK, and let us know what you think of it after you have installed and used it. If you have questions, or need to submit bugs, please visit our community page.
This release includes many new features and improvements over Tizen 1.0 released in April, and Tizen 2.0 alpha in September, 2012. As a Tizen 2.0 developer, you will find strong HTML5/W3C APIs and a new native framework.
Highlights of this release include:
- Enhanced Web framework that provides state-of-the-art HTML5/W3C API support
- Web UI framework, including full-screen and multi-window support
- Additional Tizen device APIs, such as Bluetooth and NFC support, and access to the device’s calendar, call history, and messaging subsystems
- Web Runtime framework supporting new configuration elements for specifying the required features and privileges, and providing the basic runtime environment for NPRuntime plugins
- Native framework supporting full-featured application development and providing a variety of features such as background applications, IP Push, and TTS (Text-To-Speech)
- Core and native reference applications including Calendar, Contacts, Gallery, Phone, Settings, and Video Player
- Enhanced Web IDE providing WYSIWYG design environment, Chrome-based JavaScript inspector, and JavaScript log viewer
- Native IDE providing a project wizard, WYSIWYG design environment, unit test tool, and dynamic analyzer
Go to https://source.tizen.org/release for more information on the release. If you are interested in building Tizen for your own devices, documentation on development and tools is found here: https://source.tizen.org/os-development.
We strongly encourage developers to attend the Tizen Developer Conference, to be held in May 2013 in San Francisco. The conference will cover a variety of Tizen-related topics, including presentations on both application and platform development. The call for papers and the registration for this conference are now open, seehttps://www.tizen.org/events/tizen-developer-conference/2013.
The Tizen Technical Steering Group
Update: Samsung reveals lessons learnt from early Tizen work [Mobile World Live, Oct 3, 2012]
LIVE FROM APPS WORLD [*], LONDON: The evolution of the mobile OS Tizen has taught its development team a number of lessons ahead of the first handset launch next year, according to Samsung’s lead evangelist for Tizen, Cheng Luo [**].
[*Discover the future of multiplatform apps]
[**audio record: Tizen: Yet another open source project or a different one?
abstract: This presentation will answer the question whether Tizen is just another open source project like Maemo and Moblin or it has its unique and different approach to developers and the market. It will focus on the USP [Unique Selling Proposition] of the Tizen platform from different aspects.]Discussing the development of the Linux-based platform for smartphones, which marries the former MeeGo efforts of Intel and Nokia with the work of the LiMo Foundation and is backed by Samsung (among other industry heavyweights), Luo said that the need for all participants to use open standards such as HTML5 when developing the OS has become apparent.
However, he added that HTML5 has been overhyped; despite a lot of “cool stuff”, it is limited by its frame rate. Luo added that the technology should not be used to compete with native apps but more to “fill in the gaps” in functionality.
In terms of licensing and governance, the best long-term strategy has been found to be “transparent governance”, according to Luo.
Luo also stressed the importance of industry support for Tizen to succeed. “To make open source projects move ahead we need strong leaders. You can’t build a healthy ecosystem without industry leaders,” he said. As well as Samsung, Tizen is backed by the likes of Docomo, Intel, NEC, Panasonic, Orange, SK Telecom, Sprint and Vodafone.
The alpha version of the Tizen 2.0 SDK was recently launched, including an improved integrated development environment, user interface framework and a greater number of device APIs. The first Tizen-powered device is due to be released next year, Luo confirmed.
as well as in Tizen 2.0 Alpha SDK and Source Code release [Tizen blog, Sept 25, 2012]:
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Tizen 2.0 alpha has additional features, tools, and other improvements, including:
- Enhanced Web framework that provides better HTML5/W3C API support and more Tizen Device APIs
- Multi-process Webkit2-based Web Runtime which provides better security and reliability for Web applications
- Advanced HTML5 features such as video subtitles and captions, battery status API, screen orientation API, <keygen> and <details>, and more
- New Tizen Device APIs for file transfer, notifications, and power control
- Advanced IDE & SDK for Web application development
- Install manager support for snapshot-based network installation
- Enhanced support for OpenGL ES
- New Platform SDK that helps platform development based on OBS [Open Build Service]
More information on the release can be found here: https://source.tizen.org/release
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Documentation on development and tools can be found here: https://source.tizen.org/os-development
As it stands now the Qt technologies in Meego will not be included into Tizen although number of parties are heavily agitating The Linux Foundation for Qt inclusion as well.
Update as of August 10, 2012: After acquiring the Qt commercial licensing business in March 2011 from Nokia, the Helsinki based, ~1000 people strong Digia, with 2011 sales of 121.9 million Euro, yesterday acquired all the rest of the Qt business from Nokia. More details in the Digia extends Its commitment to Qt with plans to acquire full Qt software technology and business From Nokia [Digia’s Qt Commercial Blog, Aug 9, 2012] and Digia Committed to Thriving Qt Ecosystem [KDE.NEWS, Aug 9, 2012] posts from Digia’s R&D director Tuuka Turunen. With this all pre-Windows Phone software platform commitments except the Java based S40 (evolved in the new Asha range) have strategically been revoked by Nokia.
Other updates:
– It’s a Wrap! Tizen Developer Conference Overview [Tizen blog, May 25, 2012]
– Tizen Developer Conference 2012: Converting your web app to Tizen [TheLinuxFoundation YouTube channel, May 16, 2012]
– The slides of the Cheng Lou’s presentation on the conference
– Opening Keynote – Jim Zemlin [TheLinuxFoundation YouTube channel, May 15, 2012]
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– Other Keynotes: Imad Sousou & Jong-Deok Choi; Dr. Kiyohito Nagata; James Pearce [TheLinuxFoundation YouTube channel, May 15, 2012]
– Tizen Developer Conference Agenda and Tizen videos on linux.com
– Tizen Developer Conference [Tizen site, March 29, 2012]: “… engages and educates developers on Tizen technology and HTML5 app development for Tizen devices … at the downtown Hyatt in San Francisco, CA on May 7-9th, 2012 … Platina Sponsor OpenMobile …“
– Framingham company breaks the apps barrier [The MetroWest Daily News, Jan 23, 2012]: “… OpenMobile has developed the only compatibility layer that actually takes the Android run time and makes it portable to non-Android devices. This is not a virtualization; OpenMobile’s ACL leverages the actual Android virtual machine and makes it run transparently in the native environment. This is a much deeper and pure engineering integration that provides seamless integration, allows every app to appear as though it was created for the target operating system you are running and provides exactly the same performance as though it were running on a similar Android platform. …“
– With OpenMobile ACL for Tizen there is even much more chance for Android Device Makers Are Mutinying, Says Insider [Technology Review by MIT, April 4, 2012]: “… Nobody wants to just be a manufacturer for Google. You see that with what Amazon has done, where they made it their own, and you also see a whole host of manufacturers taking Android down their own path. …“
– Tizen Developer Conference Agenda [Tizen blog, April 10, 2012]
– 4Q FY2011 Earnings Conference Call [Samsung presentation, Jan 27, 2012]
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…
…
– Tizen releases source code and SDK previews [Jan 18, 2012]
The nascent Tizen project unveiled its first set of materials on January 9, consisting of “preview” releases of the operating system source code and SDK, both intended to elicit feedback from developers. The announcement was accompanied by the launch of two new mailing lists and online documentation of the project’s architecture and APIs.
…
[Overview of sources, Web APIs and the SDK]
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A related development on the project management front was the sudden disappearance of the LiMo Foundation web site, which was replaced by the Tizen Association on or about January 1. The Tizen Association is essentially a re-branding of the LiMo Foundation, and, as yet, Intel itself has not finalized its membership. The Association’s site describes its goal as enabling “key stakeholders to actively shape the industry role of Tizen and develop its market presence” by the “gathering of requirements, identification and facilitation of service models, and overall industry marketing and education.” The project itself will continue to be hosted by the Linux Foundation.The specifics of Tizen’s project governance have not been fleshed out, but those are probably details that should come after the code itself has been released and developers have had a chance to work with it. In retrospect, the MeeGo project was very organization-heavy (as it was marketing-heavy), and in the end that did not help it make an impact in the marketplace. Tizen may still be a long way from shipping on commercial devices, but starting with the code rather than the other trappings of a large distributed project is a good first step.
Tizen Association Launched to Drive Industry Engagement for Tizen™ [Tizen Association news release, Jan 9, 2012]
WHAT:
Further to the announcement of 27 September 2011 from LiMo Foundation and Linux Foundation, Tizen Association has now been formed to drive industry engagement and in-market support for the Tizen software platform.Tizen Association comprises mobile industry leaders (see company list below) serving as a Board to guide Tizen and its application ecosystem to fulfill the broad industry requirement for a software platform that enables flexibility in service selection and deployment.
Tizen (www.tizen.org) is a Linux-based open source, standards-based, cross-architecture device software platform, including an operating system, HTML5 application framework and customizable user experience. Tizen will span multiple device categories including smartphones, tablets, smart TVs, netbooks and in-vehicle infotainment systems.
The industry- and market-facing role of LiMo Foundation has now been incorporated into Tizen Association, while the engineering of the Tizen software platform is taking place within the Tizen open source project hosted by Linux Foundation.
The alpha version of Tizen was released today as open source through the Tizen.org project page.
WHEN:
Tizen Association was formed on 1 January 2012. The alpha release of Tizen was made available on 9 January 2012.
WHERE:
For more information on Tizen Association visit www.tizenassociation.org. To participate in or learn more about the Tizen Project visit http://www.tizen.org.
WHO:
Tizen Association is led by a Board of Directors which guides the industry role of Tizen, including gathering of requirements, identification and facilitation of service models, and industry marketing and education. The Tizen Association Board of Directors includes representation from:
- Intel
- NEC Casio
- NTT DOCOMO
- Panasonic
- Samsung
- SK Telecom
- Telefonica
- Vodafone
CONTACT:
Vivian Kelly for Tizen Association ( viviankelly@interprosepr.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it. ).
# # #
LiMo is a trademark of the LiMo Foundation. The Linux Foundation and Tizen are trademarks of The Linux Foundation. Linux is a trademark of Linus Torvalds.
Developers (page on Tizen Association site):
Tizen will provide a robust and flexible environment for application developers, based on HTML5 and Wholesale Applications Community (WAC). With broad capabilities and cross platform flexibility, HTML5 is rapidly becoming a preferred development environment for mobile apps and services. The Tizen platform supports Web applications (HTML, Javascript, CSS) and provides a rich set of services that include the application framework, along with content, location, messaging, multimedia, network, social, and system services.
Tools will be made available to help developers use HTML5 and related web technologies to write applications that run across multiple device segments and software platforms. These applications can then be distributed via the Tizen app-store, which offers a flexible and customizable storefront and a common Tizen application catalog to service providers and OEMs . In addition, developers can take advantage of broad distribution of their apps on a wide range of devices coming to market that will support the standards based HTML5 and WAC application framework.
More details on how developers can create, distribute and monetize Tizen applications will be available soon.
End of updates
Tizen has much wider scope than Bada. It will support multiple device categories, such as smartphones, tablets, smart TVs, netbooks, and in-vehicle infotainment devices. It is still unclear how Samsung intends to use Tizen for smartphones. One possibility, nevertheless, is to enhance a future bada version with Tizen. Meantime Samsung is starting to put heavy emphasis on bada-based smartphones, with 2012 target of a 17% device share in its offerings.
Considering that in the Q3 2011 Samsung surpassed Apple and took the #1 position on the smartphone market this could bring a very significant change to the current ecosystem wars.
Below you can find all the detailed and relevant information for the above, i.e. the overall situation, bada related information, other Linux activities from Samsung, and Tizen.
The Overall Situation
Samsung’s Won-Pyo Hong on the Mobile Phone Wars: The Full AsiaD Interview (Video) [Nov 11, 2011]
Samsung Bada 2.0 demo on the Wave 3 [Nov 3, 2011]
Samsung wants Bada on 17 per cent of its devices [Nov 4, 2011]
Keith O’ Brien, head of content at Samsung mobile … said, “Next year we expect there to be some changes. 2011 has been about Android and next year, Android will have 66 per cent of Samsung device share and Bada and Windows will have 17 per cent each.”
O’Brien said that Samsung’s strategy is to go for as wide a reach as possible, adding, “Each [OS] gives you a choice. Bada is perfect as it is created in tandem and Bada for us represents a strategy we have always had.”
He admitted, though, “It’s been an Android year and Android has dominated sales.” O’Brien added, “Next year, the market will increase significantly and the size of the smartphone market will increase, with all three platforms growing at the same time.”
…
O’Brien hinted that Samsung is also working on further integrating all of its electronics devices through content, with Bada seen as the perfect OS as it belongs to the electronics firm.
Samsung Takes Top Spot as Smartphone Market Grows 42.6% in the Third Quarter, According to IDC [IDC press release, Nov 3, 2011]
Samsung became the new leader in the worldwide smartphone market, with total smartphone shipments topping the 20 million unit mark for the first time in the company’s history. As in previous quarters, its Android-powered smartphones drove volumes higher, and joining the product mix was Samsung’s refreshed Galaxy S II. In addition, its bada-powered smartphones continued to gain salience in the market, and a new Windows Phone smartphone is expected to launch in 4Q11.
Apple, after taking the number one spot last quarter from Nokia, slipped to the number two spot worldwide. But even after relying on the iPhone 4 for five quarters and the iPhone 3G S for nine, demand for the iPhone remained strong enough for Apple to realize double-digit growth year over year. Now that Apple has launched its iPhone 4S and re-priced its older models in multiple countries, Apple stands poised to challenge Samsung for the leadership position.
Nokia maintained its third place position on the strength of its Symbian phones. Its most popular smartphones included older models, including the 5230, C5, and the C7. In addition, Nokia launched four models based on its newly enhanced Symbian Belle OS, including the Nokia 600, 603, 700, and 701 as well as its first MeeGo-powered smartphone, the N9. While these new models kept Nokia’s selection fresh, the N9 is expected to see limited availability and the Nokia 600 has been cancelled.
HTC moved up one spot and maintained its upward momentum during 3Q11. During the quarter, HTC acquired several companies to complement its devices, including Dashwire for cloud-based sync, Zoodles for kid-oriented applications, and a stake in audio company Beats. At the same time, HTC launched several devices for specific segments, including the multimedia-optimized Sensation, female oriented Rhyme, and the entry-level Explorer. HTC expects to ship similar volumes in 4Q11.
Research In Motion began shipping its new BB OS 7 smartphones to the market during 3Q11, including updated versions of the BlackBerry Bold, BlackBerry Curve, and the BlackBerry Torch. But, as in previous quarters, the company’s volumes were primarily comprised of older and less expensive models, leading to the company’s first quarter of year-on-year decline and landing in the number 5 position worldwide. Still, this was enough for Research In Motion to maintain a presence among the top five vendors worldwide, with a sizable margin ahead of the remaining vendors.
|
Vendor |
3Q11 Unit Shipments |
3Q11 Market Share |
3Q10 Unit Shipments |
3Q10 Market Share |
Year-over- |
|
Samsung |
23.6 |
20.0% |
7.3 |
8.8% |
223.3% |
|
Apple |
17.1 |
14.5% |
14.1 |
17.0% |
21.3% |
|
Nokia |
16.8 |
14.2% |
26.5 |
32.0% |
-36.6% |
|
HTC |
12.7 |
10.8% |
5.9 |
7.1% |
115.3% |
|
Research |
11.8 |
10.0% |
12.4 |
15.0% |
-4.8% |
|
Others |
36.1 |
30.6% |
16.6 |
20.0% |
117.5% |
|
Total |
118.1 |
100.0% |
82.8 |
100.0% |
42.6 |
Source: IDC Worldwide Quarterly Mobile Phone Tracker, November 3, 2011
Samsung Electronics Announces Third Quarter 2011 Results [Samsung press release, Oct 28, 2011]
Highlighting the quarterly performance, the Telecommunications businesses recorded all-time high quarterly sales of 14.90 trillion won [US$13.4B], up 37 percent from the previous year, with growth mainly driven by strong sales of Samsung’s GALAXY smartphones. Operating profit for the businesses also hit a record 2.52 trillion won [US$2.3B].
…
“Despite the difficult business environment due to the economic slowdown in developed markets, Samsung achieved a solid performance and recovered its double-digit operating profit margin in the quarter, driven by strong sales of our smartphones,” said Robert Yi, Vice President and Head of Investor Relations.
…
Record Profit Driven By Smartphone Sales Growth
The Telecommunications businesses – including mobile communications and telecommunication systems – posted a record operating profit of 2.52 trillion won on revenue of 14.90 trillion won. This represents an operating profit margin of 16.9 percent for the quarter.
Samsung’s Mobile Communications Business saw revenues rise 39 percent year-on-year to 14.42 trillion won [US$13B]. Handset shipments rose more than 20 percent quarter-on-quarter, driven by growth in the smartphone segment where sales were up more than 40 percent on-quarter and 300 percent year-on-year. Samsung continued the global rollout of its flagship GALAXY SII, which has now sold more than 10 million units in the five months since its introduction.
Despite enhanced price competition, the average sales price of Samsung’s handsets increased on-quarter, while sales volume for the GALAXY Tab portfolio of tablets increased with the expansion of the 8.9- and 10.1-inch devices into the lineup.
Samsung expects strong seasonal demand to drive sales of its diverse portfolio of smartphones in the fourth quarter assisted by the launch of new premium devices, including GALAXY Nexus which features the latest Android 4.0 operating system for the first time in a smartphone, and the 5.3-inch GALAXY Note which is opening a new mobile device category. Strong demand in developed countries will sustain tablet growth in the quarter.
For the Telecommunications Systems Business, sales and profitability improved year-on-year due to the expansion of its 4G Long-term Evolution (LTE) business and 3G network upgrade business. Samsung expects strong network sales growth with expansion of LTE business in North America and Asia as well as 3G network upgrade business globally.
Q3 2011 Earnings Release presentation [Samsung, Oct 28, 2011]

My comments:
– The Telecom segment has become the #1 profit center of Samsung in a year by increasing its contribution from 24% in 3Q ’10 to 59% in 3Q ’11. The profit margin has grown from 10.7% to 16.9% at the same time. The revenue contribution from 27% to 36%. This is only because of the Mobile Communications Business subsegment since the rest of the Telecom segment essentialy experienced no growth, having a revenue of 0.46 Trillion Won [US$414M] in 3Q ’10 and 0.48 Trillion Won [US$432M] in 3Q ’11, which constituted only 4.2% and 3.2% of the whole Telecom revenue subsequently.
– This is a quite remarkable change for Samsung since the profit margin of the previous #1 profit center, the Semiconductor segment, has decreased from 32.1% to 16.8% at the same time, and its revenue contribution from 26.5% to 23%.
– Even more important is that — according to the Q&A part of the earnings call webcast — the absolute amount of revenue growth and the contribution to the cash flow are more important in longer term for the Mobile subsegment than either keeping the currently achieved profit margin or buying market share agressively by joining the price competition.
– In fact for 4Q they intend to maintain profitability by introducing new premium products in the high-end (Galaxy Nexus and the new category, Galaxy Notes) as well as new ones to the mass-market (Galaxy Y for moving into the mid low-end and Galaxy Y Pro).
– Please note that on the corresponding presentation slide showing their 4Q flagship products (see the excerpt above) there is also a Windows Phone-based model as a premium offering and a bada based new model as a mass-market offering. This is a clear indication that they intend to work on lower end of the market with their own platform.
– See also: TI’s OMAP4460 in Samsung GALAXY Nexus with Android 4.0 [Oct 21, 2011]
– Samsung celebrates 30 million global sales of GALAXY S and GALAXY SII [Samsung press release, Oct 17, 2011]
GALAXY SII has set a new record for Samsung, generating more than 10 million sales – quicker than any device in Samsung’s history. … Launched in 2010, Samsung GALAXY S reached almost 20 million unit sales, making it the highest-selling mobile device in Samsung’s portfolio to date, and another record-breaker for the company and the mobile market.
– GALAXY Note hits European markets [Samsung press release, Oct 21, 2011]:
GALAXY Note features the world’s first and largest 5.3” HD Super AMOLED display. This is an expansive high-resolution smart screen that provides an immersive and best in class viewing experience while ensuring smartphone portability and on the go usability. Additionally, an advanced pen-input technology, called the S Pen, combines with GALAXY Note’s full touch screen to introduce a unique user experience. Taking full advantage of the large display, GALAXY Note users will be able to multi-task, create and consume more, with fewer interruptions, while on the go.
The incorporated digital S Pen can be used for accurate sketching and artwork, while superior handwriting recognition allows ideas to be freely captured and shared with other devices without the need to perform any additional digitization; handwritten text is accurately converted into digital characters.
“GALAXY Note is a revolutionary product to open a new category in the mobile industry and I am very proud of this accomplishment,” said JK Shin, President and Head of Samsung’s Mobile Communications Business. “Samsung GALAXY Note will redefine and enhance mobile communication by offering a more advanced, productive and creative user experience with its new innovative features such as S Memo, S Planner and S Choice.”
– Other information from the earnings call webcast:
- Regarding 3Q 2011 performance:
– Success of the high-end flagship Galaxy SII: 10 million units in the first 5 months, as well as the strong Galaxy brand: mass-market smartphones Galaxy Ace, Galaxy Mini.
– Units 20% YoY, smartphone sales (revenue): 40% QoQ, ~300% YoY - Regarding technology support from the other segments for the future:
– Flexible display: 2012, first in handsets
– Securing baseband technology for the AP business: currently looking for any possible solution — from inside or outside of Samsung — with regard to baseband technology
Samsung Y Smartphone – For the Young and the Restless [product page on Reliance Digital site in India, Oct 17, 2011, excerpted on Dec 29, 2011]
…
So make a SMART CHOICE – Buy the Samsung Galaxy Y S5360 Smartphone from any Reliance Digital Store… And we will make a SMART OFFER – 10% cash back on purchase! or 6 months easy finance on credit card at 0% interest and no processing fee!!
MRP : 7830
Offer Price : 7,399 (Gujarat, Kolkata, Madhya Pradesh, Maharashtra, Tamil Nadu)Offer Price : 7,249 (Rest of India) [ US$137 ]

Quick Specs:
Specs Value Dimension 104 x 58 x 11.5 mm (97.5 gms) Display 3.0″ QVGA TFT (320 x 240) Camera 2.0 Megapixel FF cameras – Panorama Shot, Smile Shot Mobile Apps Samsung Apps / Android Market – Various applications downloadable Social Hub Integrates all SNS, email, and calendar accounts – Integrated Calendar (Google/Outlook) TouchWiz for Android Multiple Home screen, Hybrid Widgets Bluetooth BT 3.0 HS USB USB 2.0 FM FM Radio + RDS Music Music Player with SoundAlive – 3.5 mm Ear Jack – MP3/ AMR-NB/ AMR-WB/ AAC/ AAC+/ e-AAC+/ i-Melody/Midi (SMF)/ WAV/ OGG Video Video Playing (VGA@30fps), Video Recording (QVGA @ 15fps), Codec ( H.263, H.264, MPEG4), Format(3GPP, MPEG4, MKV) Operating system Samsung Android 2.3 (Gingerbread) Processor 832 MHz (BCM21552) [Broadcom] Memory 180 MB + MicroSD 2 GB inbox (Up to 32 GB) Battery Standard li-on (1,200 mAh), Standby time – 400 hrs (2G), 350 hrs (3G), Talk time – 560 mins.(2G), 300 mins. (3G) Network HSDPA 7.2 900/2100 – EDGE/GPRS 850/900/1800/1900 Sensor Accelerometer Sensor, Proximity Sensor, Digital Compass Integrated email Gmail, MS Exchange ActiveSync Additional Features SWYPE, Document Viewer, Multi Touch zoom-in & out
(Yonhap Interview) Samsung bullish on smartphones, tablets [July 18, 2011]
Samsung Electronics Co. is expected to outdo its smartphone sales target this year, with the popularity of its latest Android devices and upcoming bada phones, which run on its own mobile software, and a ramp-up in low-cost smartphones, … said Shin Jong-kyun, president of Samsung’s mobile communications and digital imaging.
“We will likely sell more than 60 million smartphones this year,” Shin said in an interview with Yonhap News Agency in his office in Suwon. “The Galaxy S2 has been well-received not only in Korea, but also in Japan, Europe and other regions, and responses to other smartphones have been positive as well.”
In February, Shin estimated Samsung’s annual mobile handset sales will hit a record high of 300 million this year, including 60 million smartphones. The company, which is only behind Nokia Corp. in terms of mobile phone shipments, sold 280 million cell phones in 2010, including 25 million smartphones.
“For the first time, Samsung’s cell phone sales will top 300 million this year. It is a very meaningful and important event,” he said. “To meet the goal, Samsung should manufacture and sell 1 million phones on a daily average and secure components for 1 million handsets every day, which isn’t an easy task.”
Part of its strategies is to boost its smartphone lineup outside Google Inc.’s Android system, including handsets running on its own proprietary mobile software, bada, and Microsoft Corp.’s Windows-based phones, Shin said. Samsung will release more “noteworthy” bada smartphones during the rest of the year, with some of them to be featured during a September trade show in Berlin.
It will also raise the production of low-cost smartphones as mid-range smartphones are replacing low-end cell phones that cannot surf the Web or download applications. Shin forecast that mass-market smartphones will become available for as low as US$150 and Samsung will try to advance into that price bracket before December.
Under Shin’s leadership, the electronics giant nimbly transformed from a smartphone laggard into a leading player in the highly profitable, fastest-growing segment of the wireless market in a mere year.
…
On the software front, Samsung plans to break into the cloud computing system, following Google, Amazon and Apple, Shin said.
“We have plans. We will respond,” he said without elaboration.
bada related information
Samsung opens Bada 2.0 to developers [Nov 4, 2011]
At a Samsung developer day yesterday, the phone maker announced that Bada 2.0 is now live, with a development kit and new features, and that the Wave 3 smartphone is coming to the UK “later this year”.
Samsung mobile UK MD, Simon Stanford said that Bada “will be a big focus” for the company “in 2012 and beyond”.
The firm claims to have so far seen 5,300,201 downloads of Bada in the UK with 300,000 Bada devices sold in the UK and eight million worldwide.
A Trio of new bada 2.0-powered ‘Wave’ Smartphones to Debut at Berlin [Samsung Tomorrow, Aug 30, 2011]
Samsung Electronics has announced the launch of the flagship 4” chic smartphone Wave 3, the social-powerhouse Wave M and the smart-start Wave Y. These all wave smartphones will be on display at Samsung’s Stand at IFA 2011 in Berlin.
All three devices, borne of Samsung’s heritage in innovation, are powered by Samsung’s own new Bada 2.0 platform which brings together a wide variety of new capabilities including multi-tasking, Wi-Fi Direct, voice recognition and Near Field Communication.
ChatONis Samsung’s proprietary mobile communication service that works across all major mobile devices. A global cross-platform communication service links all your friends and contacts instantly. Micro-communities can be set up through group chat, while a web client allows the sharing of content and conversations between mobile and PC.
Samsung Apps, an integrated application store for Samsung smartphones, is also available. With an improved UI and enhanced store features, Samsung Apps offers a wide variety of applications from globally well-known content to locally-customized applications.
“Smartphones are gaining popularity by the day. The new additions to the Wave portfolio are the first to benefit from the power of our bada 2.0 platform; the full extent of our commitment is clear to see in each device. We’ve produced easy-to-use smartphones that will inspire the market,”
– JK Shin, President and Mobile Communications business
bada 2.0 Interview (Justin Hong, VP with Samsung Mobile Communication) [Aug 26, 2011]
Samsung Wave [Sept 1, 2011]
The new bada 2.0 products summarized in a table view:
The Chronicles of Bada OS [Samsung Tomorrow, Oct 17, 2011]
Bada is an exclusive operating system (OS) for mobile devices developed by Samsung Electronics. Development was underway in 2010 when the smartphone wave started sweeping the worldwide mobile phone market. Since then Samsung has been gradually ramping up its mobile phone market share, selling mobile phones that are equipped with its latest OS, Bada 1.2. The main goal of Bada is not to compete with iOS or Android but to make easy-to-use and cost effective devices for everyone.
Smartphones which run Bada have proven extremely popular in Europe where consumers are more financially conservative, and the Bada-equipped phones have even ranked as the best selling smartphones in France. As far as market share is concerned, they beat Microsoft’s Windows OS smartphones.
Also, Bada offers support for running Samsung Apps with the purpose of creating its own mobile eco-system, with the total number of apps recently hitting 100 million downloads.
Launched at the same time as Galaxy S, Wave, (the first Bada-based flagship model), Wave37 and low-end Wave578 as well as Wave723 were most popular in Europe.
Bada 1.2 and the latest version, Bada 2.0, have a long history since around the year 2000. Of course, 10 years ago, the smartphone market wasn’t what it is now. Smartphones began to gain momentum only a couple of years ago whereas Bada has been around and constantly evolving over more than 10 years.
Bada OS runs on SHP (Samsung Handset Platform), which originates back to MOCHA (Modular & Configurable Handset S/W Architecture). MOCHA was developed by Samsung Electronics Software Laboratory which was looking ahead to the future growth of software segment. The laboratory aimed to develop an easily replicable platform that was able to easily multi-task.
Based on this platform, the first video-capable 3G mobile phone (SGH-Z100) was released to the European market. After its successful launch, MOCHA was replaced by SHP, a further developed version of MOCHA, which is now applied to many 3G mobile phones. Each year, about 50 to 60 million handsets with SHP are shipped out of Samsung’s 200 million annual production volumes.
SHP has claimed a very important part of Samsung Electronics Mobile Business Division for over 10 years and the platform was upgraded in 2010 to keep pace with the popularization of smartphones. The new generation contains such features as multipoint-touch, 3D graphics and an enhanced User Interface (UI) among other features. A middleware layer, called OSP (Open Service Platform), was added to the platform to be later renamed Bada, on which you could develop various applications or download apps from the Samsung app store.
Samsung enhances its own mobile platform with the launch of ‘bada 2.0’ [Samsung Tomorrow, Aug 25, 2011]
Unveiled at Mobile World Congress in February 2011, bada 2.0 includes many compelling, new features. Borne of Samsung’s heritage in innovation, bada 2.0 brings together a wide variety of new capabilities including multi-tasking, Wi-Fi Direct, Near Field Communication (NFC) and voice recognition. It enables smartphone users to experience advanced services such as mobile payment, transport pass-card recharge and file sharing without Internet networking.
With the improved support for web applications including Flash and HTML 5, users can experience enhanced web capabilities. It also means that smartphones based on bada 2.0 can run any web application developed with Flash or HTML. Samsung expects that this upgrade will help to greatly expand its developer community into Flash and JavaScript as well as the existing C++ community.
A key feature for developer partners is the introduction of In-app Ads. Using the Ads API (Application Programming Interface) developers for bada 2.0 can easily insert advertisements, creating new revenue opportunities. Samsung has also upgraded and strengthened its application development environment, providing developers with increased support. An Emulator has been added to foster a development process suitable to the target environment. Tools such as Profiler optimize the device’s performance ensuring that resources like memory and processing power are used to their fullest capacity.
Samsung has enhanced the ‘Samsung Apps’ retail store and expanded full availability through to 121 countries worldwide. With this 2.0 version, more differentiated functions will be offered from Samsung Apps, including new purchasing options and recommendations.
In the third quarter this year, three new Wave smartphones, powered by bada 2.0, will launch the market; the devices will range from premium models with enhanced performance to entry-level devices that focus on affordability. Bada 2.0 SDK can be downloaded from the bada developer site (developer.bada.com).
Other Linux activities from Samsung
Samsung Linux Platform v1.0 / v2.0 (Nov. 2008 ~ Present)
Samsung Linux Platform (SLP) is a mobile operating system based on the Linux 2.6 kernel and X.org server. Evolving from XO v1.0, SLP changed and developed several features, such as the replacement of the window system to X Window, as well as the support of EFL (Enlightenment Foundation Library) for applications. Furthermore, SLP has gradually expanded its target devices from mobile phones to TVs, cameras, MP3 players, tablets, and laptops. Not only has SLP been compatible with LiMo, but the SLP team has become LiMo foundation’s leading contributor. SLP’s design is based on the principles of the standard Linux desktop, suitably adapted for the mobile environment. SLP reuses a large number of Open Source components. Hence, its software architecture is easy to understand for anyone familiar with a standard Linux desktop. The SLP software stack has a layered architecture consisting of applications, middleware, and the Linux kernel.
Members: approximately 300 developers…
Vodafone 360 H1 / M1 – Linux-based SNS Specialized Smartphones (Jun. 2009 ~ Sep. 2009)
Based on SLP2, Vodafone 360 H1 and Vodafone 360 M1 are smartphones, the first LiMo Release 2 products that provide Vodafone’s specialized 360 online service focused on SNS. H1 is a high-end model based on TI (Texas Instruments)’s omap3430 CPU, which has the SGX340 GPU core. M1 is a lower-priced model based on SEC (Samsung Electronics)’s S3C6410 CPU. The Vodafone 360 H1 features a large 3.5-inch WVGA AMOLED display, a 5-megapixel autofocus camera with the capability to shoot 720p high-definition video, 16 GB of onboard storage, integrated GPS, plus Wi-Fi and Bluetooth wireless networking capabilities. It also supports EDGE/GPRS 850/900/1800/1900 and HSDPA mobile broadband capabilities. The M1 scales back slightly, providing a 3.2-inch TFT display, 1 GB of memory (with microSD expansion), a 3-megapixel camera, and integrated GPS. The M1 lacks Wi-Fi, but still offers HSDPA. Both phones feature a unique 3D interface that enables users to have a depth-based chronological view of mail and calendar items, as well as tie into exclusive Vodafone services.
Members: over 500 developers
XO v1.0 – LiMo Compatible Linux Platform (Sep. 2007 ~ Oct. 2008)
XO is a Linux-based mobile platform that provides high level features, performance, and reliability, while supporting multiple sets of BSP, Window System, and Mobile Browser. XO is compatible with LiMo Release 1. The LiMo Platform is a modern Linux-based Operating System for mobile handsets. As a window system, XO adopted DirectFB, a thin library that provides hardware graphics acceleration, input device handling and abstraction, integrated windowing system with support for translucent windows, and multiple display layers, not only on top of the Linux Frame Buffer Device.
Members: about 120 developers
Vodafone kills 360 at last [Oct 19, 2011]
Its attempt to create its own-branded mobile web experience will be closed down by year end
Vodafone is to shut down its 360 cloud-based service by the end of the year, in another blow to carriers’ hopes of creating web offerings under their own brands to fight back against Google and Apple.
In many ways, 360 was forward looking when it was introduced in 2009. It offered storage and synchronization across multiple devices in the cloud, long before iCloud or Amazon Cloud Drive came to Android, and it unified key user experiences such as social networks around a single address book and UI. It also included a portal for accessing music and video content, a number of third party widgets, and an application store.
There were several problems though. For one, Vodafone wanted 360 to be more than just a useful service to go a step further than simpler cloud offerings like O2’s. It wanted it to be a vehicle to assert its own independence in the software platform, so it ran the initial offering on LiMO, a Linux-based OS which was the latest attempt to create a carrier-controlled mobile environment (it is now merged with MeeGo to form Tizen). As with other such attempts, developers and consumers remained largely indifferent, putting their efforts into the mass market Android and iOS, and so after a while Vodafone scaled back its ambitions and transferred key elements of 360, such as the address book, to the Google OS.
However, the LiMO plan had cost it the interest of many handset makers and developers, and by the time it reworked the offering, other cloud services had appeared. Its main smartphone partner for LiMO and 360 was Samsung, but despite a friendly user interface, the 360-branded handsets were never as heavy hitting as models such as Galaxy Sand eventually they were axed altogether, relegating 360 to a service available on a range of smartphones.
Vodafone compounded its problems by trying to use its new-found Android support to push its 360 agenda. It caused a storm of negative publicity for its service when it forcibly downloaded 360-branded apps and UIs when customers upgraded their Android release on certain HTC handsets.
All these missteps meant 360 was pushed to the back of the Vodafone armory, along with its loftier cloud ambitions, and this week it confirmed it would phase out the brand over the next few months. It sent text messages to customers advising them to copy any contact details, emails or photos currently stored in the cloud before December 31. The writing has been on the wall for this round of Vodafone’s over-the-top endeavours for a while – a year ago, its head of internet services, Pieter Knook, poached from Microsoft two years earlier, resigned.
Samsung’s Software Prowess: Big Changes are Coming! [Samsung Tomorrow, Oct 14, 2011]
Dubbed as the Next Generation Software R&D Group, Samsung’s elite crew of programmers and experts endeavor to develop software for next generation media. It’s always hard to predict the future, but this group continues to move forward, based on media-market analyses and ongoing research. We had a chance to speak with some of the folks about the development.
…
Q. What does your team do?
Lee: The team develops the right software for the next generation mediabased on our research and analysis as to what types of media will prevail in the market. Bada, Android and iOS are currently in equal positions, allowing users of these devices to download applications from their own proprietary online application stores, such as “App Store” or “Android Market”.
In contrast, web-based OS will be using a cloud-based approach rather than individual users running applications installed on their devices. With the advent of web OS, users on any browser-enabled mobile device will be able to access a whole slew of services on the web without the bothersome task of installing. It is our top priority to develop web OS-specific software accessible to everyone.
Kim: It started with a big idea of building an open web application platform allowing you to run apps online written for any devices. Just to be clear, “next generation software” means applications distributed across web servers or online or running inside the cloud. We’ve been trying to explore possibilities for better solutions, continuing to engage in research and development to get geared up to be the market leader in the future.
Q. Can you share a bit more specifically what you do?
Kim: My team is currently developing UI related functions for a SLP browser. I’m sure it’s safe to say we’re the end user’s first point of contact, as they first come face-to-face with the UI when using the browser.
Lee: I’m looking after a script engine that converts JavaScript, being the only dynamic language on the web, into programming languages, which will help speed up PC gaming.
Park: I’m working on webcore, linking UI with the script engine.
Q. Tell us about your future goals.
Lee: We are looking at about 3 years for the emergence of a huge market for the web-based standard OS, creating an integrated ecosystem for mobile applications. Wouldn’t it be nice for us to take the lead?
This group debuted back in January, consisting of 40 professional engineers assembled and organized from the ground up within Samsung. Keeping up with the unprecedented pace of emerging technology, this team is now in the midst of developing web OS-specific software accessible to everyone. Samsung has a lot of confidence in its group of excited, passionate and able engineers. Shouldn’t be long before you have something made by this group running in your hands.
Tizen
Welcome Tizen to the Linux Foundation [Jim Zemlin, Executive Director of the Linux Foundation, Sept 27, 2011]
Tizen is a Linux-based, open source platform designed to address the future of HTML5-based applications across a variety of device types.
Welcome to Tizen [Dawn Foster, Community Manager for MeeGo, Intel, Sept 27, 2011]
Tizen will support multiple device categories, such as smartphones, tablets, smart TVs, netbooks, and in-vehicle infotainment devices.
…
The Tizen application programming interfaces are based on HTML5 and other web standards, and we anticipate that the vast majority of Tizen application development will be based on these emerging standards. These APIs will cover various platform capabilities, such as messaging, multimedia, camera, network, and social media. For those who use native code in their applications, the Tizen SDK will include a native development kit. We will open the entire Tizen software stack, from the core OS up through the core applications and polished user interfaces.We expect the first release of Tizen and its SDK in the first quarter of 2012.
What’s Next for MeeGo [Imad Sousou, Meego’s technical steering group co-leader, Director, Intel Open Source Technology Center, Sept 27, 2011]
I want to personally thank everyone who has participated in MeeGo over the past year and a half, and I encourage you to join us at Tizen.org.
Limo Foundation And Linux Foundation Announce New Open Source Software Platform [LiMo Foundation™ and the Linux Foundation global press release, Morgan Gillis, Executive Director of LiMo Foundation, Sept 27, 2011]
Tizen combines the best open source technologies from LiMo and the Linux Foundation and adds a robust and flexible standards-based HTML5 and WAC web development environment within which device-independent applications can be produced efficiently for unconstrained cross-platform deployment. This approach leverages the robustness and flexibility of HTML5 which is rapidly emerging as a preferred application environment for mobile applications and the broad carrier support of the Wholesale Applications Community (WAC). Tizen additionally carries a state-of-the-art reference user interface enabling the creation of highly attractive and innovative user experience that can be further customized by operators and manufacturers.
…
… a well-timed step change which unites major mobile Linux proponents within a renewed ecosystem with an open web vision of application development which will help device vendors to innovate through software and liberalize access to consumers for developers and service providers.
(and see also LiMo&Tizen for what’s actually happening there).
Tizen Summit Asia 2011 coming! [Oct 27, 2011]
Nomovok organizes Tizen Summit Asia 2011 at Beijing Marriott Hotel City Wall 8-9 December. The event gathers together Open Source Vendors, OEMs, operators and other Tizen project contributors, together with local Open Source contributors in China. Check the event website and register here!
Dear Intel & Samsung, Can Tizen have some Qt ? [Oct 24, 2011]
Is banking everything on HTML5/JS/CSS3 the best way forward ? I think Not. Could we not have HTML5 + Qt Support in Tizen ? Already Nomovok have announced that they will provide Tizen with integrated Qt, but for this to work we need it to be adopted by the project as a whole. If we lose Qt then we Lose a lot of Developers that believe in it and NOT in HTML5 and have not bought into being able to make the move to HTML5. For the wholesale of applications HTML5 seems like the one, but for more specialist applications Qt is a Development Framework that a lot of development companies prefer and that is a fact that you can’t get away from.
….
sleeve says: October 26, 2011 at 10:33 pm
@uncle steve: now intel says no to qt?
no, samsung says no to qt as it is open source LGPL and any improvement or deployment would help Nokia tiny 1% – Samsung afraids. Samsung is happy with its vaporware BSD-licensed englightement without even one stable release in 11 yearsbecause the license allows to close any single bit if needed. If enlightenment fails samsung will use the backup tech aka HTML5 as already plans and no qt at all. Again, because in their flawed perception that would give nokia a point. All in samsung’s SLP/Limo – 4 bloody years without even single flawed release. The korean giant is strong in pushing hardware that’s all about it. Otherwise bada would be such a success for them.
Yeah Intel apparently HAPPILY supports qt on its part of tizen on its hardware and in AppUp stores. Intel wants apps SO qt will give what enlightenement wont.
More info about Tizen… [Florent Viard, Oct 24, 2011]
Hi all,
I want to share with you all the info the MeeGo Network France gathered from unofficial sources about Tizen.
Some of these info could be inaccurate, so consider them with care.
When the Tizen project was announced, it was more a “political” decision about a view for a future system than the announcement of an already existing new technical platform.
Ever since then, the Linux Foundation, Intel and Samsung are working on how they could create it based on MeeGo and Limo. It looks like they are still not sure of the architecture and this is certainly why they haven’t disclosed any technical info yet.
A big part of Tizen will be to have a framework and the corresponding SDK to support HTML5-WAC applications. Native applications development should also be supported through the usage of the EFL (Enlightenment_Foundation_Libraries –
http://en.wikipedia.org/wiki/Enlightenment_Foundation_Libraries) with the SDK. So we could suppose that the reference UI of the system will also be based on the EFL.How the merge between MeeGo and Limo will be done? MeeGo will give a big part of the system with the components that are not QT-based, and Limo will provide the EFL components. More components of Limo will be used for the handset stack of Tizen. So, the overall appearance of the system should be similar to MeeGo and it should not be too hard to have derived version with the QT-things for those who want it.
In the current planning, the first version of Tizen is supposed to be released in February 2012 with the SDK. But we don’t know if the development and sources will be opened to everyone before this.
>From the governance side, the reassuring thing that we heard is that Samsung and Intel really want to have Tizen be a common system shared with other manufacturers and not be seen as their own system, so they gave the leadership to the Linux Foundation. And that is why there is currently not so much communication coming from Samsung or Intel about Tizen, because it is of the responsibility of the Linux Foundation to decide what and when communicate and if there could be community involvement or not in the first stage of Tizen.
So, our questions go to the Linux Foundation to know when they will start to disclose more info? If nothing will be available before February 2012, maybe it will be good to at least release MeeGo 1.3?
Don’t hesitate to reply if you want to correct things or if you have more details.
++
Florent
MeeGo Network France
Re: More info about Tizen… [Dawn M Foster, Community Manager for MeeGo, Intel, Oct 26, 2011]
On Oct 26, 2011, at 6:32 AM, Arnaud Delcasse wrote:
> Novomok looks like actually being the organizer, yes. But Linux
> Foundation people are announced for keynotes and presentations.
> On IRC, Paimen from Novomok said that he would send more
> informations on the mailing list “later today”.
>
> Short things I’ve read from him on IRC :
> – this would be an “unofficial” summit (14:16:56 Paimen | so
> basically this is unofficial event for community and vendors)
> – it replaces a “MeeGo summit” which should have been organized in
> Asia (14:18:19 Paimen | well it supposed to be meego summit
> and because of current events we decided to change it for open forum
> for tizen)Yes, it is being organized by Nomovok as an unofficial summit, but we’ve known about it, and I have also been talking to Pasi Nieminen about this summit. We’ll work with Pasi and others to help clear up this confusion shortly.
Re: More info about Tizen… [Akira Tsukamoto, Oct 26, 2011]
Hi all,
I work for Nomovok and I would like to add some comments about Tizen summit in Asia: http://tizensummitasia2011.com/
- I understand your frustration having no public information released from the Linux Foundation and relevant companies yet. Please be patient for a while because they are preparing the background to make the information public.
- I understand that when the Linux Foundation frozen the all the MeeGo development infrastructure such as wiki, build server and repository, equivalent Tizen infrastructures are not hosted yet. It is also ongoing and please be patient.
- As Ms. Dawn Foster from Intel mentioned that Pasi is the CEO of the Nomovok and coordinating the Tizen Summit 2011 in Beijing with the Linux Foundation and relevant companies, so it is concrete event.
- The main purpose of having the Tizen Summit is to get all the people interested on Tizen to have face to face gathering and share the information together. This activities should improve the speed of project of Tizen process.
I Hope thing gets clear with the above.
Jukka Raninen is also the person who has clear situation for the event.Thanks,
Akira
Will Intel’s Tizen mobile operating system succeed where MeeGo failed? [Dr. Axel Rauschmayer, Oct 20, 2011, ]
Tizen [1], Intel’s new mobile operating system, is supposed to succeed where MeeGo failed. However, the article “From MeeGo to Tizen: the making of another software bubble” by David Neary for VisionMobile expresses doubt:
One thing which has not changed from MeeGo is the wide range of participants being targeted by the project. At the moment, the target audience can best be summarised as “everyone”. Tizen is aimed at platform developers, integrators, vendors, application developers, and mobile enthusiasts. That’s a very wide range of target audiences, each with different needs and expectations. Not knowing your target customer is a surefire way to throw money down the drain.
Technology-wise, there are also many cooks:
We also know is that the primary APIs for 3rd party developers are targeting HTML5 and WAC environments. WAC stands for Wholesale Applications Community, a set of APIs for building and delivering rich HTML5 applications, based on APIs from JIL (Joint Innovation Labs) and BONDI (a platform specified by the now-defunct Open Mobile Terminal Platform, OMTP). The Enlightenment Foundation Libraries (EFL), are also set to be a key part of the platform. We can infer two things from this: Qt will be taking a back seat in Tizen, if it is part of the platform at all, and it appears that SLP [the Samsung Linux Platform] will be the basis of the Tizen platform.
Explanations:
- WAC is an organization run by telecom companies – not by handset makers. Supporting its standards smells like a marketing decision, not a technical decision. At least it makes sense in the HTML5 context. Compare: RIM supporting Android apps on the PlayBook where a completely different technology is hosted by the native QNX.
- EFL is a portable user interface library that originated with the X11 (Unix) window manager Enlightenment. It has bindings for several languages, including Python, JavaScript, Perl, C++, and Ruby.
The world could really use a truly open mobile operating system. Using HTML5 for the user interface layer also makes a lot of sense. I’ve always wondered why Intel does not go it alone. So far it has not had a lot of luck with its partners; and with Tizen, it is already doing all the talking, while Samsung is largely silent. Another paragraph from the article explains the reason:
Tizen seems set to be another victim of misaligned incentives across several industry partners. Samsung is bringing SLP to the “standards” table simply to find a new home for it, now that LiMo [the organization that previously backed SLP] is winding down. Intel is seeking another marriage of convenience, trying to tempt a major OEM to ship significant x86 chip volumes.
Related reading:
TD-SCDMA: US$3B into the network (by the end of 2012) and 6 million phones procured (just in October)
Updates: China government not expected to issue TD-LTE operating license for the time being [Jan 16, 2012]
While China Mobile has been actively promoting TD-LTE, the China government is not expected to issue a TD-LTE operating license to China Mobile for the time being, according to industry sources.
China Mobile finished initial TD-LTE trials in seven selected cities in China around the end of 2011 and has proposed a second-round of trials, but the China government has not yet approved the plans, signaling the government’s attitude to slow down promotion of TD-LTE in China, the sources indicated.
This is because 3G mobile communication services are taking off in the China market and therefore the government does not want to issue a TD-LTE operating license out of consideration for China Telecom and China Unicom, the sources said.
– China Outstrips U.S. in Smartphone Market [Nov 23, 2011]
Deliveries of smart phones to operators and retailers in China grew 58% in the third quarter from the previous quarter to 24 million units. That surpassed 23 million units delivered to the U.S. market, down 7% from the previous quarter …
Nokia Corp. had the largest share of China’s smartphone market in the third quarter, with 29%. … Samsung Electronics Co. Ltd. is chasing hard with 18% of the Chinese market …
Strategy Analytics estimates that 57% of the world’s handsets were manufactured in China in 2010. … two of Nokia’s eight production facilities are based in China and the company said China is also one of its bigger suppliers of mobile handset components. …
End of updates
China Mobile Begins New Round of TD-SCDMA Procurement [Oct 12, 2011]
China Mobile (NYSE: CHL; 0941.HK) recently began its fifth-round TD-SCDMA equipment tender. China Mobile will further expand its TD-SCDMA 3G network by deploying base stations in county-level cities and other key urban areas, with total base stations expected to reach approximately 300,000 by the end of 2012. Mobile network equipment vendors have received tender orders and will place bids this week.
China market: China Mobile to expand TD-SCDMA network, says report [Oct 14, 2011]
China Mobile will invest an estimated CNY19 billion (US$2.97 billion) to expand its TD-SCDMA network, adding 53,000 base stations around China, according to China-based media DoNews.
China Mobile has established about 210,000 TD-SCDMA base stations around China, the report indicated.
The second-round value was not disclosed only the following became known (China Mobile Releases TD-SCDMA Tender Results [Nov 17, 2011])
The second round TD-SCDMA tender, with a scale 1.53 times that of the first round, involved 23,000 wireless base stations in 28 Chinese cities.
The third-round had a value of RMB8.6 billion ($1.26 billion), see: China Mobile releases 3rd-round TD-SCDMA bidding results [May 11, 2009]
According to China Mobile to Release Results of Phase Four of TD-SCDMA Tender [TD Forum, July 1, 2011]
China Mobile is expected to procure around 102,000 base stations for the TD-SCDMA network in 101 cities, close to the total number in the previous projects.
In the previous three TD-SCDMA network construction projects, China Mobile set up 108,000 base stations in total, with a combined investment of over CNY90 billion (USD13.16 billion).
According to Winners of New TD-SCDMA Bid [June 9, 2010]:
CMC has spent about 103 billion yuan ($15 billion) on three phases of TD-SCDMA construction so far. Insiders estimate the new round will cost about 90 billion yuan ($13 billion) based on the number of BTSs that will be 2.5 times over the previous phase. Actual spending may be different because more or less BTSs may be needed as project goes along. Previously, CMC announced a phase-down in capex to reach about 80 billion yuan ($12 billon) by 2012 from 123 billion yuan ($18 billion) in 2010, a reduction of 35% in three years.
CMC’s goal is, after the fourth phase, TD-SCDMA coverage will be available in all major cities with improved signal quality and low drop ratio. However, user experience can be very different. Even in cities where the service is available people still complain about shaky connection and jagged video especially in moving vehicles or traveling toward the edge of city. CMC officials say an objective of fourth phase is to “replenish” blind spots in existing networks missed from previous phase, a weakness that has put CMC behind its rivals in quality of service.
If everything goes smoothly, construction is expected to begin in August or September.
According to Chinese vendors take 70% of [4th round] TD tender: report [July 28, 2010]:
China Mobile has built out its network in 238 cities over the last two years. It spent 129 billion yuan ($19b) on its 2G and 3G networks in 2009-10 and this year expects to invest 123 billion yuan, of which 106 billion will go to its combined 2G/3G rollout.
CMCC to Invest CNY 19bn to Construct TD-SCDMA Network [Oct 13, 2011]
BEIJING, Oct 13, 2011 (SinoCast Daily Business Beat via COMTEX) — The insider disclosed on October that CMCC (China Mobile Communications Corporation) is to invest CNY 19 billion to construct TD-SCDMA network in different counties and important villages and towns in China.
Meanwhile, the existing TD network topology in cities will be perfected. It is reported that CMCC plans to construct 53,000 new TD base stations. Through the first four phases of construction and continuous blind compensation, CMCC has constructed 210,000 base stations by the beginning of this year.
The invitation for the bidding started from the later half of September and has entered into the crucial bidding returning stage at present. According to the requirements of CMCC, manufacturers have to return the tenders today.
It is specially required by CMCC that the TD-SCDMA network to be newly constructed should be smoothly upgraded to TD-LTE network with the same frequency, namely, the TD-SCDMA network should be upgraded and evolved to the future LTE-frequency network in terms of wireless equipment, core network equipment, transmission and supporting facility at current frequency.
Source: http://www.sina.com.cn (October 13, 2011)
The current subscriber data (from the corresponding operators, till August 2011) is indeed showing that China Mobile TD-SCDMA needs a significant boost in the subscriber numbers:
China Mobile had 627.628 million mobile subscribers as of August 31, 2011, and 40.318 million 3G subscribers, that is only 6.4% of the overall.
China Unicom meanwhile had 186.1 million mobile subscribers as of August 31, 2011, and 27.868 million 3G subscribers, that is as much as 14.97% of the overall.
China Mobile to purchase 6 million TD-SCDMA mobile phones [Oct 9, 2011]
According to a notice issued to all mobile phone manufacturers , China Mobile has launched a new round of TD-SCDMA mobile phone purchases before National Day [Oct 1], and plans to purchase six million universal TD mobile phones.
All procurement of universal TD handset
A relevant mobile phone manufacturer said this purchase is called “universal G3 mobile phone” centralized procurement project, the procurement of universal G3 mobile phone estimates about 6 million, including 3.6 million low-end TV terminals , 2.4 million mid-end TV terminals.
The mobile phone manufacturers received invitation to tender on the September 29th 16:00 to 18:00 and September 30 9:00-18:00 .
The TD phones purchases maybe related to the fourth round TD-SCDMA network Construction. The construction is currently underway and will be extended to almost all cities of the country. In this case, the demand for TD mobile phones increased.
Chipmakers are ready to support that:
First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]
especially because: Kinoma is now the marvellous software owned by Marvell [Feb 15, 2011]
Spreadtrum is the other big player in that:
China Mobile To Adjust Subsidies For TD-SCDMA Terminals [Oct 17, 2011]
China Mobile (0941.HK) plans to adjust the subsidies given to buyers of its TD-SCDMA terminals in order to expand the pool of its 3G users following several unsuccessful attempts to introduce Apple Inc’s iPhone, reports yicai.com.
Li Liyou, the C.E.O. of a TD-SCDMA chip maker [chairman of Spreadtrum], said the largest mobile operator in China has cut the procurement of TD-SCDMA terminals by two-thirds, and buyers of TD-SCDMA phones which are included under the operator’s list of TD-SCDMA phones will now be able to enjoy fee rebates.
According to Li, 2012 will be the year in which GSM mobile phones are replaced by TD-SCDMA phones as the difference in production cost per phone is reduced to less than $2, and TD-SCDMA smartphones currently cost about $60 to make, and can be sold to customers at 700 yuan each.
Procurement by China Mobile currently accounts for less than 30 percent of total TD-SCDMA terminal sales volume, said Gao Guiming, vice president of Changhong Communication and Digital Information.
Spreadtrum Meets Milestone for China Mobile TD-SCDMA Grant [Sept 30, 2011]
Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced that in 3Q 2011 it has met the last major milestone of a TD-SCDMA research and development grant awarded by China Mobile to the Company in 2009. This marks successful completion of the project and will enable the Company to recognize more than US$8 million in research and development grants as an offset to operating expenses in the third quarter of 2011, including subsidies recognized from both the China Mobile and other government projects. Spreadtrum’s TD-SCDMA customers include more than 30 global and domestic tier-1 manufacturers and design houses who have introduced more than 72 feature phone and smartphone models in 2011 using Spreadtrum’s baseband solutions.
Spreadtrum now commands more than 50% market share of TD-SCDMA shipment volumes. Dr. Leo Li, Spreadtrum’s president and CEO commented, “We are the clear leader in the feature phone and fixed wireless segments of the TD-SCDMA market, which account for the majority of industry shipments so far this year. Our 40nm-based single-chips with TD-SCDMA/EDGE/GPRS/GSM, multi-media and power management features have enabled customers building handsets on our platform to achieve breakthrough standby and talk times, at a retail price point that is attractive to 3G handset buyers. We further expect to expand our footprint in the smartphone segment following the launch of our low-cost single-chip smartphone product.”
Dr. Li added, “In addition to today’s news and in response to recent shareholder inquiries, we would like to provide additional clarification on our corporate structure. Our primary operations in China are conducted through a wholly foreign owned enterprise (WFOE), distinct from the variable interest entity (VIE) structures that are common in the China Internet sector and that have been the subject of recent press speculation with regards to possible PRC or US government review. There is no active investigation that we are aware of by either the China government or the US Department of Justice of our corporate structure or accounting practices, which adhere to conservative interpretation of US GAAP.”
Spreadtrum Counts on Taiwan’s Chipmakers to Win 3G Battle In China [Oct 3, 2011]
Spreadtrum Communications Inc. of mainland China has contracted Taiwan Semiconductor Manufacturing Co. (TSMC) and Advanced Semiconductor Engineering Inc. (ASE) to make its baseband chips designed on 40nm process rule amid white-hot competition among the mainland’s 3G chip vendors.
Spreadtrum has commanded a 56% share of the mainland market for the wireless chips specifically designed for mobile phones that are built on the TD-SCDMA (time-division synchronous code division multiple access) 3G format, which is spearheaded by China Mobile Co., Ltd.
The chip vendor recently completed a 40nm chip design, which it claimed consumes only two thirds of the electrical power that a 65nm chip does and brings down the cost of TD-SCDMA phone close to that of the 2.7G EDGE handset.
Spreadtrum has designated TSMC to make the chips and ASE to package the chips for it in conjunction with China Mobile’s plan to promote TD-SCDMA handsets during the 2012 Chinese New Year holidays, which will begin on Jan. 23.
The vendor will begin pilot production of its chips for the 4G TD-LTE (time division long term evolution) phones at the end of this year also at TSMC and ASE.
Industry executives expect Spreadtrum to retain the championship in the mainland’s market for the TD-based chips given that it has shied away competition against Taiwan’s MedaTek Inc. for a slice on WCDMA (wideband code division multiple access) market, where competition is keener among chip vendors than on TD-SCDMA market. In addition to MediaTek, competitors in the mainland’s WCDMA market include MStar Semiconductor Inc., Qualcomm Inc. and ST-Ericsson Inc.
The mainland now has around 100 million subscribers to 3G telecommunications service, which is mostly provided by China Telecom on CDMA2000 network, China Unicom on WCDMA network and China Mobile on TD-SCDMA network.
New high-tech and direct investment relationships between the US and China?
With more than $3.2 trillion in foreign currency reserves, out of which $1.17 trillion is in US Treasury bonds while also heavily constrained to have just a mere 0.1 percent of the total foreign direct investment in the U.S., China is extremely worried about the safety of the country’s dollar assets. China’s state-run Xinhua News Agency made it quite clear in Beijing’s first official response to the Standard & Poor’s decision to downgrade the U.S. credit rating that:
After historic downgrade, U.S. must address its chronic debt problems [Xinhua, Aug 6, 2011]
The days when the debt-ridden Uncle Sam could leisurely squander unlimited overseas borrowing appeared to be numbered as its triple A-credit rating was slashed by Standard & Poor’s (S&P) for the first time on Friday.
Though the U.S. Treasury promptly challenged the unprecedented downgrade, many outside the United States believe the credit rating cut is an overdue bill that America has to pay for its own debt addition and the short-sighted political wrangling in Washington.
Dagong Global, a fledgling Chinese rating agency, degraded the U.S. treasury bonds late last year, yet its move was met then with a sense of arrogance and cynicism from some Western commentators. Now S&P has proved what its Chinese counterpart has done is nothing but telling the global investors the ugly truth.
China, the largest creditor of the world’s sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China’s dollar assets.
To cure its addiction to debts, the United States has to reestablish the common sense principle that one should live within its means.
…
International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currencymay also be an option to avert a catastrophe caused by any single country.
For centuries, it was the exuberant energy and innovation that has sustained America’s role in the world and maintained investors’ confidence in dollar assets. But now, mounting debts and ridiculous political wrestling in Washington have damaged America’s image abroad.
All Americans, both beltway politicians and those on Main Street, have to do some serious soul-searching to bring their country back from a potential financial abyss.
The way out of the uncertainty about the safety of dollar assets has clearly been indicated by Xinhua journalist Deng Yushan today:
Better open the U.S. door wider than scapegoat RMB [Aug 19, 2011]
With U.S. Vice President Joe Biden in China, the yuan has once again become fodder for the headlines of some Western newspapers amid pretty serious reports that the guest from Washington would press Beijing to allow the Chinese currency to appreciate more rapidly.
Any speculation about the alleged undervaluation of the yuan is indeed wide of the mark. In the past decade, so much has been said about the Chinese currency, also known as the renminbi or RMB, in the West, and it is always like beating a dead horse.
Simply put, the exchange rate has never been the real cause of the huge U.S. trade deficit with China.
For starters, the Chinese currency has already appreciated more than 20 percent against the U.S. dollar since China unpegged it from the greenback in the 2005 reform of its exchange rate regime. In the first half of this year, it gained 2.33 percent.
The U.S. trade deficit with China, meanwhile, has persisted. According to Chinese statistics, it was about 114 billion U.S. dollars in 2005, but it increased to over 180 billion dollars in 2010.
Washington and Beijing may quarrel about the “real figures” of the trade deficits by using different calculations. But the plain fact is that large U.S. trade deficits with China continue to exist even as the Chinese currency has appreciated against the U.S. dollar significantly in the past six years.
Meanwhile, China has been making serious efforts to create a more flexible exchange rate regime in a gradual way, taking into account both internal realities and external conditions. History has repeatedly demonstrated that radical exchange rate fluctuations are a recipe for financial and economic calamities.
As the second largest economy next only to the United States and an important powerhouse for global economic growth, China has to maintain financial stability and economic soundness. A volatile Chinese economy is no good news for the United States and the broader world.
Rather than misplaced blame and charged rhetoric, sensible and viable options are on the table for U.S. policymakers to wipe away much of the red ink and catch hold of the elusive balance. Ready ones include Washington relaxing its restrictions on high-tech exports to China and Uncle Sam opening his door wider to Chinese investors.
Washington has its due security concerns while selling products of super-sensitive technologies. However, as U.S. Ambassador to China Gary Locke said last year when he was commerce secretary, some of the export regulations “make no sense” as many items on the control list have already been readily available from companies around the rest of the world.
While reshaping its unnecessarily tight export policy toward China, the United States can also take off its behind-the-times colored glasses and take in more Chinese direct investment so as to better redress the general imbalance of the economic and trade exchangesbetween the two giants.
Chinese investment fully deserves fair treatment. A recent joint study by the New York-based Asia Society and the Washington-based Woodrow Wilson International Center for Scholars points out that China now accounts for a mere 0.1 percent of the total foreign direct investment in the U.S., while Chinese firms in the U.S. are estimated to have created more than 10,000 local jobs.
As many from both sides of the Pacific Ocean have appealed over and again, Chinese investment in the U.S. should be encouraged, and the U.S. process of screening investment for national security concerns should be insulated from political interference.
China’s FDI to help US growth [China Daily US Edition, May 5, 2011]
WASHINGTON – Political fear mongering about Chinese direct investment in the United States could cause the US to miss out on employment and investment opportunities, American scholars said.
The warning was sent by scholars on Wednesday in the form of a recent study on Chinese foreign direct investment (FDI) in the US. Entitled An American Open Door? – Maximizing the Benefits of Chinese Foreign Direct Investment, the study shows that increases in China’s direct investment in the US in the coming decade will help with economic growth and job creation in the country.
Over the past two years, the value of Chinese FDI assets in the US has grown 130 percent annually, said Daniel Rosen, an economist and one of the two authors of the study.
He and economist Thilo Hanemann estimate that in 2010 alone, Chinese investments in the US amounted to $5 billion.
By combining data from professional databases, media reports and industry contacts as well as documenting real-time Chinese investments, they show that Chinese firms have opened businesses in at least 35 states and created some 10,000 jobs.
Profitability is the essential motive behind the Chinese investment, Rosen said, adding that Chinese firms are likely to “place some $1 trillion to $2 trillion in direct investments around the world over the coming decade”.
Stapleton Roy, former US ambassador to China, said that the study offers “informed basis for potential controversy that tends to rise as China shifts its global posture from being a net absorber of FDI to a major provider of FDI, a trend that has begun to emerge in the last few years“.
The study has “brought together the best factual bases for understanding both positive aspects of Chinese FDI in the US and potential risks that exist with FDI in advanced countries”, said Roy, who is director of Kissinger Institute on China and the United States at the Woodrow Wilson International Center for Scholars, which co-sponsored the study with the Asia Society Center on US-China Relations.
The two authors addressed the national security issue that has aroused outcries particularly in the US Congress, saying that the US should continue its screening through the Committee on Foreign Investment in the US (CFIUS), a group headed by the Treasury department with members coming from defense and intelligence departments.
While Rosen defended CFIUS’ role, he did admit that Huawei’s continued failures in major mergers and acquisitions in the US along with other much publicized cases has “already planted seeds of mistrust among Chinese entrepreneurs and Chinese firms that are considering operating in the US or Germany or Canada and someplace else“.
The flow of investment from China to the US constitutes “one of the fundamental changes in US-China relations”, said Orville Schell, director of the Asia Society Center on US-China Relations.
Schell said the US “will suffer” if it cannot find ways to “be as open to Chinese capital as we are to other firms”, even with national security issues considered.
Background(from Xinhua or Xinhuanet sources):
China increases U.S. Treasury holdings in June [Aug 17, 2011]
(Photo: China Daily)
BEIJING, Aug. 17 (Xinhuanet) — China purchased another $5.7 billion of US Treasuries in June, an investment described by one expert as “the best of a bad bunch”, amid growing calls for the country to diversify its foreign reserves.
June was the third consecutive month that China increased its holdings in US Treasury bonds, despite concerns over the safety of dollar assets.
The new purchase boosted China’s holdings to $1.17 trillion as of the end of June, a period when global investors were worried about the outcome of the US debt ceiling debate.
China added to its holdings by $7.6 billion in April and $7.3 billion in May, according to data from the US Department of the Treasury.
As the largest creditor of the US, China has been closely watched for its investments in dollar assets, especially after Standard & Poor’s downgraded the credit rating of the US.
Japan, the second-largest holder of US Treasuries, reduced its holdings by $1.4 billion in June, leaving them at $911 billion. Britain boosted its holdings from May’s $346.8 billion to $349.5 billion in June.
Yuan Gangming, a researcher at the Center for China in the World Economy at Tsinghua University, said the purchasing of US Treasuries reflects China’s limited choice regarding its $3.2 trillion foreign exchange reserve.
“Increasing the holdings despite the slow economic recovery in the US and signs of looming debt problems is ‘choosing the best of a bad bunch’, meaning there are no better places for China to put such a large amount of money,” Yuan said.
Yuan believes that activity in US Treasuries by Japan and Britain has more to do with their own domestic situation rather than the actual value of the bonds.
Although the US economy has been overshadowed by the rating downgrade, the country’s fundamentals in the long term remain strong, Yuan said.
Ken Peng, senior China economist with BNP Paribas, said increasing the holdings in US bonds is not too significant.
“What really matters is the proportion of China’s newly increased US dollar assets (including Treasury bonds) to the newly increased foreign exchange reserves,” he said. “Though there is no way to get the figure, we estimate that the proportion is gradually dropping.”
He said that the key method to address China’s foreign reserves dilemma is to achieve a trade balance.
“If the country’s foreign exchange reserves continue to grow at a fast pace, there is little chance of getting out of the cycle,” Peng said. “You have to do something with the accumulated dollars.”
China’s trade surplus surged to $31.5 billion in July, the highest level in more than two years, as exports rose to a record level, the General Administration of Customs said last week.
Analysts said that while there is not much that China can do in the short term with its foreign reserves, it should nonetheless try to diversify.
“Gold probably tops the list, besides euro-denominated assets and debt of the emerging markets,” said Yao Wei, China economist with Societe Generale in Hong Kong.
“The share of gold in China’s foreign exchange reserves is significantly lower than other countries. The pace of diversification will be subject to the situation in global financial markets and China’s own currency reform.”
Zhu Zhiqun, a professor of political science and international relations at Bucknell University in Pennsylvania, said China should be “more creative” and diversify investments.
“Chinese companies can help failing US businesses through acquisitions and purchases. The US Congress is likely to block Chinese investment in key sectors related to US national security, such as the oil industry, but it is not opposed to Chinese investment in less sensitive businesses,” Zhu said.
(Source: China Daily)
China to allow faster currency appreciation: analysts [Aug 11, 2011]
BEIJING, Aug. 11 (Xinhuanet) — China, backed up by rising exports, is expected to allow a faster appreciation of its currency, which also enables the country to stave off hot money inflows and combat inflation.
The People’s Bank of China, the central bank, set the official medium trading price at 6.4167 yuan against one U.S. dollar Wednesday, marking a new record high of the Chinese currency trading the greenback since Beijing embarked on the yuan’s revaluation reform in July 2005.
Wednesday’s value surge marks a steep rise of 168 basic points from Tuesday’s 6.4335 yuan trading one U.S. dollar. So far this year, China’s currency has appreciated by about 3 percent.
Most Chinese experts predict that Beijing would allow an appreciation of the yuan against the greenback at a magnitude higher than the 5 percent last year.
Foreign trade surplus for July hit $31.5 billion, the highest in two and a half years, thanks to higher-than-expected export growth, particularly to the European Union and emerging economies like Indonesia, Argentina, Brazil and India.
The gains in both exports and imports in July – hitting $318 billion according to the General Administration of Customs – tell that China’s economy remains on a solid track, which will give the authorities in Beijing replenished confidence to raise the value of the yuan, experts say.
The $31.5 billion monthly trade surplus is the highest since February 2009 and has come at a time when the world’s second largest economy faces uncertain outside demand, typically from sputtering economic engines in the U.S and Japan.
As a countermeasure to independent rating agency, the Standard & Poor’s, downgrading U.S. government credit from the top-notch AAA to AA+ for the first time in history, the Federal Reserve came out Tuesday with a surprise policy statement, asserting America will extend its extremely low interest rates through 2013.
The U.S. central bank hinted it could also launch another round of “quantitative easing” by purchasing more government bonds.
Chinese analysts believe that if QE3 is started, a considerable proportion of the generated credit will flow to China, like QE2, attracted by China’s solid growth and higher interest rates.
To thwart the flooding-in of the hot money, Beijing will be forced to increase the value of the yuan, experts say. China’s central bank has amassed a total of more than $3.2 trillion in foreign currency reserves by June this year. The accelerated hot money inflows have ratcheted up yuan supplies to the market as the central bank has to buy them with local currencies.
China faces rising pressure of inflation as inflation has kept building up this year. It reached a 37-month high of 6.5 percent in July.
(Source: People’s Daily Online)
Chinese investment, a real threat to U.S. national security? [Aug 27, 2010]
BEIJING, Aug. 27 (Xinhua) — The United States has repeatedly blocked investment from Chinese companies on national security grounds, a protectionist move that will only harm its own interests, analysts say.
Eight U.S. congressmen recently asked the Obama administration to scrutinize a deal between Chinese telecom equipment giant Huawei and the American operator Sprint Nextelon national security grounds.
It was not the first time Huawei’s attempts to break into the U.S. market have been stymied. Earlier its buyout attempt of 3Com was summarily dismissed by the U.S. government.
Citing national security concerns again, a bipartisan group of 50 lawmakers in July requested that the government investigate an investment project of China’s Anshan Iron and Steel Group(Ansteel), China’s fourth largest steelmaker, which plans to establish a joint rebar venture with a U.S. partner in Mississippi.
“It is inappropriate for some U.S. lawmakers to label regular business behavior as a move that threatens national security,” Yao Jian, a spokesman for the Ministry of Commerce, recently said about Ansteel’s investment plan.
“I hope the United States can create a better investment environment for Chinese enterprises,” he said.
Chinese analysts said the actions were sheer protectionism, adding that national security concerns is only a lame excuse by U.S. authorities, whose true intention is to protect the interests of domestic enterprises and industries.
Moreover, standing up to China’s allegedly unfair trade practices can easily earn the congressmen much needed political chips in the upcoming mid-term election in November, the analysts said.
The setback that Huawei and Ansteel suffered is only the tip of the iceberg. Actually, blocking investment from Chinese companies in the name of national security has morphed into a knee-jerk reaction that could only harm America’s own interests.
Emcore Corporation, a U.S. fiber optics producer, announced in late June that it has abandoned a joint venture in partnership with China’s Tangshan Caofeidian Investment Corporationbecause the Committee on Foreign Investment in the United States “has certain regulatory concerns about the transaction.”
Another State-owned enterprise, Northwest Nonferrous International Investment Company, was also forced to withdraw a purchase of 51 percent stake in Firstgold Corp., a gold mining firm located near a U.S. military base in Nevada.
“Some U.S. politicians still see China through tinted glasses,” said Chen Fengying, a senior strategist with the China Institute of Contemporary International Relations.
In their eyes, China is still a planned economy under a totalitarian regime, she said.
“As a result, they begin to politicize Chinese investment and make it become an issue of security even before Chinese companies carry out any business activities there,” she said, “It is not fair for the Chinese enterprises,” whose regular business behavior has been constantly mischaracterized.
Chen said that compared with the difficulties Chinese firms face in the United States, it is much easier for American companies to invest in China.
According to Ministry of Commerce officials, U.S. companies operating in China report annual profits of at least 80 billion U.S. dollars.
By last June, the total number of U.S. investment projects in China had exceeded 57,000 and the value of accumulated U.S. investment in China reached 61 billion dollars.
According to the American Chamber of Commerce in China’s 2009 White Paper, about 74 percent of American businesses in China made profits and 91 percent chose to stay in China to expand their business.
On the other hand however, the total value of accumulated Chinese direct investment in the U.S. was only 3.1 billion dollars by last June, according to ministry statistics.
Chen said opening the American market wider to Chinese companies will definitely create many more job opportunities in the United States, a fact that U.S. politicians can’t afford to ignore as the country is still haunted by an unemployment rate as high as 9.3 percent.
American politicians should abandon their bias and discrimination against Chinese enterprises and free themselves from the Cold War mentality, Chen said.
“After, solving the problem of unemployment could bring much more tangible benefits for the American people,” she said.
Note that this is in sharp contrast to the current state of Chinese direct investments in other parts of the world:
– China-Qatar cooperation benefits both countries [Xinhua, June 23, 2008]
– Tenth anniversary of China-Africa forum observed in Egypt [Xinhua, Nov 11, 2010]
Chinese direct investment in Africa increased from 210 million dollars in 2000 to 1.44 billion dollars [?yearly?] in 2009, according to Song [Aiguo, Chinese new ambassador to Egypt]. More than 2,000 Chinese enterprises have set up branches in the continent.
– Cooperation benefits all people [China Daily via Xinhuanet, Nov 7, 2011]
Chinese investment in Africa has expanded steadily. In 2008, Chinese direct investment in the continent amounted to 5.49 billion dollars. The existing stock of investment had reached 7.8 billion dollars and more than 1,600 Chinese companies had invested in Africa by 2008, covering a wide range of areas from product processing to agricultural development. Substantial progress has been made in infrastructure cooperation.
Chinese enterprises have undertaken the construction of some major projects in Africa, including the east-west expressway in Algeria, the expansion of the Lobito Port in Angola and the Bui hydro-power station in Ghana, which have been widely applauded by local governments and people. After years of efforts, China-Africa trade and economic cooperation has shifted towards a diversified and interactive pattern encompassing trade, investment, aid and project contracting, playing an irreplaceable role in the economic development of both sides.
– Sino-Russian trade back on fast track: officials [Xinhua, Aug 20, 2010]
Mutual investments also surged this year, as Chinese direct investment to Russia jumped 58.5 percent during the first half of 2010and the Russian investment to China up 18.3 percent, they said.
Russia is interested in continuing cooperation in such areas as electric power, nuclear energy, logistic infrastructure, [Russia’s Economic Development Minister Elvira] Nabiullina said.
Chen [Deming her Chinese counterpart] said Chinese companies are willing to increase investment in Russian enterprises and to take part in their infrastructure construction.
He noted that China would take active measures to promote the import of Russian mechanical and electrical products, and also hopes that in return Russia will open its market to more Chinese cars.
– Full text: Report on China’s economic, social development plan [Xinhua, March 17, 2011]
5. Reform and opening up were further intensified.
We vigorously implemented the “go global” strategy and made further progress in a number of major outward investment projects. Non-financial outward direct investment for the year amounted to $59 billion, an increase of 36.3%.
– Full Text: Report on China’s national economic, social development plan [Xinhua, March 16, 2010]
6. Reform and opening up continued to deepen.
China’ s foreign exchange reserves stood at $2.3992 trillion at the end of 2009, an increase of $453.1 billion year on year. Outbound investment cooperation soared despite the financial crisis, with new progress made in joint exploitation of energy and resources, overseas mergers and acquisitions, contracted projects and labor services. Chinese direct investment (excluding financial sector investment) in other countries reached $43.3 billion in 2009, an increase of 6.5%, and the volume of business in overseas contracted projects amounted to $77.7 billion, an increase of 37.3%.
– Full Text: China’s economic, social development plan [Xinhua, March 20, 2008]
Special Report: NPC, CPPCC Annual Sessions 2008
Chinese enterprises did more investing overseas and increased cooperation with foreign companies, resulting in Chinese direct investment in other countries, excluding financial investment, reaching US$18.7 billion in 2007, an increase of 6.2% over the previous year.
– Hu’s visit to further promote Sino-Vietnamese ties [Xinhuanet, Oct 30, 2005]
By September 2005, Chinese direct investment in Vietnam rose to 710 million dollarswith 346 projects.
The two countries are implementing a series of cooperative projects using preferential loans offered by the Chinese government, such as those in the Thai Nguyen Iron and Steel Plant and the Bac Giang Fertilizer Factory.




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