Chinese Believe WCDMA Phones Superior to CDMA and TD-SCDMA Models

­Over half (58%) of Chinese customers believe that WCDMA phones are the best 3G network in the country, followed by CDMA2000 (14.1%) and just 4.3% saying that TD-SCDMA handsets are the best.

In addition, 16.4% of the consumers responding to a CCID Consulting survey, thought that the networks are different between the three systems but they did not know the details. Corresponding to this, for their first-choice 3G service provider, 44.2% of the users chose China Unicom, 26.2% China Mobile and 18.4% China Telecom.

The survey results show that 3G terminals have become the primary factor affecting consumer perception of 3G operational effect. Among the three 3G systems, CDMA2000 can be smoothly upgraded from 2G. Consequently, China Telecom has certain advantages in 3G network building at the current stage. Though TD-SCDMA made a late start, China Mobile nevertheless provides a sound guarantee for the development of TD thanks to its operating power in the 2G era and big user numbers. WCDMA is still in a stage of trial commercial use. Its network coverage, business promotion and user numbers are still very limited. One reason for high consumer recognition of WCDMA network services is the media coverage of successful WCDMA operation experiences abroad. Another primary reason is that WCDMA is supported by international mobile phone vendors including Nokia, Sony Ericsson and Apple iPhone. The influence of terminal brands has produced a potential impact on consumer cognition of 3G network services.

Consequently, in the 3G promotion period when services have yet to mature, consumer concerns are more concentrated on handsets. Carriers should use high quality and diversified terminals to nurture consumer perception of the 3G demand and promote services brands, and take this as the entry point for promotion, and strengthen user adhesion through diversified services. Meanwhile, as 3G services mature, less emphasis on technical standards and strengthened service brands will help promote 3G services.

3G services need to be more diversified, and the services market still has huge potential

The survey shows that in the use of 3G netcard and netbook services, 31.7% of the users selected web page browsing, while 28.1% mobile office and mail receiving/sending, 16.1% download services and only 8.9% simple online games. As for 3G mobile phone applications, 44% of the users selected high-speed Internet access through mobile phone, 18.9% videophone, 16.8% mobile TV and video and around 10% mobile phone music and mobile phone games.

Expenses have become the biggest obstacle for users to experience 3G

The survey shows that almost half of those surveyed users who had not bought a 3G mobile phone made it clear that they did not want to buy it, and a majority of consumers who intended to buy still took a wait-and-see attitude and would make a decision after people around them have bought one. 45.5% of the surveyed users said that they would not buy a netcard in the near term. The figure was 63.7% for a netbook. As for the reasons why they had not bought a 3G mobile phone, the factor of expenses (including use fees and mobile phone price) accounted for 43.8%, while application services, network and mobile phone variety factors accounted for 15.8%, 15.5% and 14.1%, respectively.

Given that the majority of the samples surveyed online actually show a high degree of acceptance to 3G products, users in the real market may have a clearer wait-and-see attitude towards 3G. Expenses have become the biggest obstacle for users to experience 3G services. Regarding this situation, carriers and mobile phone makers not only should jointly develop and introduce 3G mobile phones with a high price/performance ratio, but also need to use the free sharing model for Internet basic services in order to strengthen services promotion and ensure customer adhesion. Moreover, they may also provide optional personalized value-added services to raise their profit level.

Carriers' business hall is still the main channel for users to buy 3G products, while channel diversification makes a slow start

The survey reveals that as for 3G sales channels, 52.3% of the surveyed consumers chose carriers' business hall, 16.7% Gome, Suning, Carrefour and other malls, 14.6% online shops and 13.6% computer malls.

The survey shows that the carriers' business hall has become the top-choice channel for consumers to buy 3G products. There is a strong link between 3G terminals and services. Carriers will mostly adopt the model of bundle sales of terminals and services packages. This will greatly increase the share carriers' channels have in terminals sales. However, due to the low coverage of business halls and consumers' shopping inertia in buying mobile phone from social channels, carriers need to step up their efforts to sell 3G terminals through social channels while improving their own channel building. Carriers are now strengthening their cooperation with mobile phone malls and other social sales channels, and have expanded their cooperative services from mobile phone sales to serial terminal services, including network entry, number supplement, fee payment and value-added services. However, consumers' current cognition and selection of 3G product sales channels show that carriers' channel diversification and publicity effects have not produced satisfactory results. It is necessary for them to provide more convenient channel support for the large-scale marketing of 3G terminals.

Posted to the site on 28th October 2009