15 Nov, 2007
China Mobile CEO Wang Jianzhou has revealed the company is in talks with Apple to sell the iPhone but expressed reluctance to accept its partnership demands. “We still think we can maintain the operator-centric model because we have the customers,”he told attendees of the Mobile Asia Congress.
“We're discussing with Apple people but haven't any agreement. Our customers like this kind of fashionable product, and I think the big problem is with this model.” Apple expects to launch the handset in Asia next year following 2007 launches in the US and Europe. Wang indicated it is keen to continue its strategy of an exclusive operator partner with a strong revenue-share component.
It remains to be seen whether Apple will relent - China Mobile boasts nearly 350 million subscribers, which could translate into massive profitability just on handsets alone. Its stringent terms already saw Verizon decline an alliance in the US while the company agreed to launch the iPhone in France despite a law requiring it to sell unlocked handsets within the next few months. China Mobile is also unlikely to expend much effort in negotiations based on its subscriber trump card, tosay nothing of its membership in the recently formed Google Open Handset Alliance.
Meanwhile, the operator is on track to finish construction of its first eight metro TD-SCDMA networks this year. Wang said China Mobile will conduct a commercial trial once the builds are completed in anticipation of a 3G license award. The operator is widely expected to adopt the homegrown wireless standard following its inevitable spectrum win. "Once everything has been done, we will review the results accordingly," Wang told reporters.
China is expected to finally award 3G licenses following a restructuring of the nation's telecom industry. Wang declined to comment on possible changes, but said China Mobile was actively seeking to list A shares on a mainland bourse.
