Tag Archives: competition

Abroad, mobile but virtual

China Telecom, the largest fixed-line provider in China, is going mobile in the UK…

Neither the mode of entry via a mobile virtual network operator (MVNO) nor the segment targeted (Chinese tourists) may sound very threatening to established mobile operators like Vodafone or O2. While such a low-key market entry carries little downside risks, it also provides little upside benefits. Nevertheless, it sends a mighty signal to carriers across the world that Chinese operators are no longer only concerned about their domestic market.

In spite of China’s accession to the WTO a decade ago and the ensuing  ”liberalization” of the telecommunication market no foreign operator has really ever managed to crack the Chinese market. Competition may now take place elsewhere and, given the deep pockets of Chinese operators, it may be fierce.