Phone firms ride the recession

   Date:2008/11/04     Source:

TELECOMMUNICATIONS giants, including Vodafone, China Mobile and Nokia, will continue to increase investment in technology despite recession jitters, industry officials said yesterday.

China, the world's biggest mobile phone market, will be less influenced by the credit crisis as it's a relatively separate market, according to analysts.

Sir John Bond, chairman of Vodafone Group said in Shanghai that the company wouldn't be stopping its 4G development with China Mobile despite the current economic landscape.

"I think the 4G network will be rolled out. The clients want them whatever the surrounding economic circumstances," Bond said. "We are hoping that there are as many cell phones to sell as they were in the past. But, seriously, if people are losing their jobs in some of the western countries, then I think they will look to reduce a certain amount of mobile phone usage. But it varies from country to country."

Vodafone will continue its cooperation with China Mobile on 4G and the development of green technology, Bond said.

The 4G technology supports wider coverage and faster data rates.

Meanwhile, China Mobile is introducing the second phase of its 3G networks in 28 cities in China's mainland.

The services will be available from the middle of next year.

China's mobile phone sales are expected to hit 193 million units this year, 8.9 percent lower than previously forecast.

The 2007 sales volume was 176 million units, according to Gartner, a US-based IT research firm.

Nokia, whose net profit dropped 30 percent year-on-year globally in the third quarter, said it would retain the leading market share in China, at about 40 percent.


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