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China Mobile Announces Big LTE Push, No Progress on iPhone Negotiations

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Original poster
Apr 12, 2001
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The Wall Street Journal reports that China Mobile -- the largest cellular carrier in the world -- is planning to spend $7 billion on its LTE network this year, paving the way for the company to support the iPhone 5. Until now, China Mobile hasn't sold the iPhone, though more than 15 million iPhones are used on its networks, but at extremely slow data speeds.

However, China Mobile says there has been "no progress" to report in negotiations with Apple.

Apple-iPhone-5-
While China Mobile has been in talks with Apple for years over a potential deal to offer the iPhone, Chief Executive Li Yue said that there had been "no progress" to report. In January, Mr. Xi met Apple Chief Executive Tim Cook in Beijing and discussed cooperation, raising expectations that China Mobile would soon begin offering the iPhone.

China Mobile would be a key partner for Apple, which faces fierce competition from Samsung Electronics and other rivals offering smartphones powered by Google Inc.'s Android operating system.
Click to expand...
China has accounted for much of Apple's recent record growth, and Tim Cook has traveled to China several times to meet with China Mobile representatives to make a deal.

Article Link: China Mobile Announces Big LTE Push, No Progress on iPhone Negotiations
 
Article Link
https://www.macrumors.com/2013/03/14/china-mobile-announces-big-lte-push-no-progress-on-iphone-negotiations/
Rocketman

Rocketman

macrumors 603
Dec 2, 2001
6,191
1,186
Claremont, The intellectual capitol of the world.
I would expect China Mobile, which is not technically a capitalist firm, to focus heavily on TD-LTE to differentiate it from the rest of the world and be the first large carrier to focus on VoIP and SMS to replace voice and text over data signals. The fall-back access over 3G and voice is a transition for 2-3 years after which all handsets will be data only and prepaid only.

Rocketman

http://www.reuters.com/article/2013/03/13/usa-banks-spying-idINDEE92C0EH20130313
 
O

orangebluedevil

macrumors 6502
Jun 28, 2010
323
17
Rocketman said:
I would expect China Mobile, which is not technically a capitalist firm, to focus heavily on TD-LTE to differentiate it from the rest of the world and be the first large carrier to focus on VoIP and SMS to replace voice and text over data signals. The fall-back access over 3G and voice is a transition for 2-3 years after which all handsets will be data only and prepaid only.

Rocketman
Click to expand...

Why would the largest network in the world, which is owned by the government, has a captive audience, and has 1B subscribers...need to differentiate.

Come on.
 
thelink

thelink

macrumors regular
Jun 29, 2012
114
10
It would seem that if there was a way to provide free wifi everywhere then people wouldn't need cellular service at all. I may just be ignorant of how this would actually be achieved.

Just my $0.02...
 
HiRez

HiRez

macrumors 603
Jan 6, 2004
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orangebluedevil said:
Why would the largest network in the world, which is owned by the government, has a captive audience, and has 1B subscribers...need to differentiate.

Come on.
Click to expand...
Every company needs to keep growing, expanding, and looking ro the future, even huge and profitable ones. Kind of the same "problem" facing Apple right now.
 
R

roow110

macrumors regular
Jul 1, 2011
110
26
If Apple wants to compete worldwide, it really needs to find away to tap into the low-income market. They will not succeed selling their phones for $1000 there...
 
DipDog3

DipDog3

macrumors 65816
Sep 20, 2002
1,191
812
Instead of the iPhone 5S, Timmy is going to introduce the iPhone 5C in China.
 
D

dave420

macrumors 65816
Jun 15, 2010
1,426
276
thelink said:
It would seem that if there was a way to provide free wifi everywhere then people wouldn't need cellular service at all. I may just be ignorant of how this would actually be achieved.

Just my $0.02...
Click to expand...

WiFi is difficult to cover large areas. In my house I can barely get WiFi reception in every room. And in some places it is nowhere near good enough to stream.
3G/4G data services are designed to be used in large areas with lots of users. That is the economical way for data to be available to a large area. Don't expect WiFi everywhere. Of it it is then don't expect it to be as cheap or reliable as cellular service.
 
iGrip

iGrip

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Jul 1, 2010
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Looks like Apple needs China Mobile a whole lot more than China Mobile needs the iPhone.
 
TheHateMachine

TheHateMachine

macrumors 6502a
Sep 18, 2012
846
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dave420 said:
WiFi is difficult to cover large areas. In my house I can barely get WiFi reception in every room. And in some places it is nowhere near good enough to stream.
3G/4G data services are designed to be used in large areas with lots of users. That is the economical way for data to be available to a large area. Don't expect WiFi everywhere. Of it it is then don't expect it to be as cheap or reliable as cellular service.
Click to expand...

Consume grade wifi routers are really low powered and cheap and incapable of doing what he wants. However, when you get into business grade APs you can cover vast amounts of areas and support large amounts of users. With that said... these kind of Wireless APs do not come very cheap. They run into the thousands.
 
A

arbourable

macrumors member
May 24, 2010
36
0
iGrip said:
Looks like Apple needs China Mobile a whole lot more than China Mobile needs the iPhone.
Click to expand...

So, you infer that Apple is in the weaker position because there is no deal. You need to justify that.

On the other hand, could it be that China Mobile think they're big enough to tell Apple what the deal is, and Apple have been patiently explaining to them that they're wrong?
 
M

Marlor

macrumors regular
Jun 21, 2005
233
65
tigres said:
It would appear that the days of board members stampeding to pick up the apple soap at the negotiation tables are dwindling.
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China Mobile has never been like that.

Even when they had their agreement with Nokia, it came with very large strings attached... like handsets specific to China Mobile, and a large cut from sales on the Nokia Ovi store (which was once the world's largest app store).

The new Nokia deal involves putting Mobile Market (China Mobile's own app store) onto Windows Mobile phones.

I'm sure that is one of the major sticking points right now. China Mobile won't do a deal without either receiving a cut from Apple App Store sales, or putting their own app store on the phone.
 
G

genovelle

macrumors 68020
May 8, 2008
2,100
2,677
Apple Corps said:
Steve has quite a list of accomplishments. Cook OTOH, IMO, is squandering Apple's innovation trajectory. The missteps under his leadership have been enumerated in many threads and a chorus of opinions to replace him is growing.
Click to expand...
Oh the missteps are huge! They only had the best quarter in the history of the company and have only missed wall streets crazy numbers that they never said they would do. Cooks only mistake is trying to be more open with the public and investors. They decided to give more realistic guidance and made that clear. The problem is wall street continues to use the same factoring to come up with their numbers. They should go back to extremely conservative guidance which I think they may have done for this quarter.
 
A

atsang

macrumors member
Jan 25, 2007
90
10
orangebluedevil said:
Why would the largest network in the world, which is owned by the government, has a captive audience, and has 1B subscribers...need to differentiate.

Come on.
Click to expand...

Does it matter why? They've gone TD-LTE full steam ahead regardless of "Why". TD-LTE is the future where we can expect 50-100Mbps down in the real world (assuming the infrastructure is built). Eventually Softbank in Japan will have it too, as well as carriers from Brazil, Russia, India, Sweden, and Saudi Arabia. It is not a question of "Why" but "When"?

The big question mark here in the US is, how will we all have access to a TD-LTE network, when AT&T and Verizon don't seem to have any plans to migrate? Sprint/Clearwire essentially have a huge headstart on them, but their deal with Softbank is still not done, and rumors have their TD-LTE network behind schedule.
 
R

rMBP13

macrumors member
Feb 3, 2013
91
0
These two companies need each other, come on Apple! Supply China Mobile with your lower-priced iPhones!
 
melgross

melgross

macrumors 6502
Jan 23, 2004
446
394
New York City
orangebluedevil said:
Why would the largest network in the world, which is owned by the government, has a captive audience, and has 1B subscribers...need to differentiate.

Come on.
Click to expand...

It's not a captive audience. Customers move between the carriers just as they do here. It doesn't have a billion subs either. More like 675 million. And it's a semi private company.

----------
iGrip said:
Looks like Apple needs China Mobile a whole lot more than China Mobile needs the iPhone.
Click to expand...

Don't be too sure about that. They are losing customers to the other big carriers because of 3G issues.

----------
Apple Corps said:
Apple is not a drop in the bucket compared to China's economic scale. This is just another example of Tim Cook's inability to close the deals and squandering the lead Apple once had.
Click to expand...

I don't know about that, Jobs failed to close the deal for years.

----------
Apple Corps said:
Steve has quite a list of accomplishments. Cook OTOH, IMO, is squandering Apple's innovation trajectory. The missteps under his leadership have been enumerated in many threads and a chorus of opinions to replace him is growing.
Click to expand...

Not true!

What you don't seem to know is that the big sticking point with China Mobile is they they have been demanding a percentage of the money from the App Store. I'm not sure if they are demanding from iTunes as well.

This is a problem that Apple can't let slide. If China Mobile succeeded with this, every carrier around the world will demand the same thing. It's more important for Apple to not give in on this than it is to get a deal with China Mobile.

If in your genius, you can think of how to "close the deal" without giving that up, by all means, tell us.
 
C

CShort

macrumors regular
Aug 2, 2011
109
0
TheHateMachine said:
Consume grade wifi routers are really low powered and cheap and incapable of doing what he wants. However, when you get into business grade APs you can cover vast amounts of areas and support large amounts of users. With that said... these kind of Wireless APs do not come very cheap. They run into the thousands.
Click to expand...

It's just a different frequency. Wifi is high frequency that doesn't travel very far. 2G/3G/4G operates on much much lower frequencies that travel very far.
That's the physical difference, so large scale wifi deployment is really a pointless exercise.
 
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