China Mobile to focus on cloud, network technology, Internet of Things and Wireless City initiatives

Telecom Lead @ GSMA MOBILE ASIA EXPO 2012: China Mobile
chairman Xi Guohua said the operator can overcome the major challenges by
focusing on cloud computing, faster network technology, the Internet of Things
and its Wireless City initiatives.

The value chain is changing. In the past the value chain was dominated by
operators, but now it’s operators, device manufacturers, content providers and
everyone is taking a great role in this value chain. The ranking of operators
in the FTSE 500 is dropping, while others are improving,” said Xi Guohua during
his keynote address.

The major challenges facing China Mobile include increasing network pressure.
Last year saw mobile data levels on its network increase by 70 percent, a
figure expected to increase to more than 150 percent this year. While data
traffic has brought income for operators, they then have to invest in the
network, so we have to strike a delicate balance.

Other challenges include overcoming the perception that operators are dump pipe
providers, and embracing the fact that the traditional telco business model is
facing competitive threats.

Operators are very good at providing stable services,
but the Internet business is characterised by faster cycles and agile
developments. The traditional business model and strength of operators has
therefore become a constraint in the new business world,” he added.

Despite obstacles, Xi Guohua noted that industry growth will create big
opportunities for operators, fuelled by a 2.1 billion mobile Internet customer
base by 2015 driving CAGR of 24 percent.

Key to China Mobile taking maximum advantage of this
growth will be a focus on cloud computing and the Internet of Things:

In the next two years more than 3.5 billion industrial
product units will be connected via Internet and mobile communication. Users of
internet of things for China Mobile have been increasing at 60 percent.

The company plans to deploy 20,000 TD-LTE base stations in 13 cities by end of
this year.

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