Contents - Connect-World

Mobile Data
New technology, new users, new possibilities in China
by Charles Henshaw, Executive Director and Chief Executive Officer, China Resources Peoples Telephone Company Limited
China, the worlds largest cellular area still has low market penetration. Hong Kong has
one of the worlds highest penetration rates. In both, voice drives mobile usage, but data
services are proliferating. In China, the Internet is not yet widely used; mobile handsets
substitute PCs for e-mail and text; SMS bridges between wireless and wired Internet.
Mobile growth in Hong Kong depends upon applications and content availability.
Growth in mobile data is limited while China awaits governmental regulation of 3G.
Charles Henshaw is the Executive Director and Chief Executive Officer of China Resources Peoples
Telephone Co. Ltd. Mr Henshaw joined China Resources Peoples Telephone Co. Ltd. as Chief Technology
Officer in September 1998. Mr Henshaw was responsible for the strategy and implementation of new
technologies within the Company, focusing on enhancements of mobile services into messaging, transaction
and multimedia services.
Previously, Mr Henshaw worked with Ericsson in a variety of telecommunications management capacities
in different countries. He was the General Manager of the Fixed and Cellular Networks of Ericsson
in Hong Kong before leaving for China Resources Peoples Telephone Co. Ltd. Mr Henshaw also sat on
the committee of the Hong Kong Telecommunications Association from 1997 to 1998 and advised on
issues within the HK mobile telephone market.
High-speed wireless data, a
foundation for growth
We are becoming accustomed to seeing
the global subscription numbers
for mobile data services soar as new
applications drive traffic upwards.
High-speed networks based on
advanced technologies such as EDGE,
UMTS, CDMA 1X and WCDMA will
grow steadily during the next few
years.
Although voice continues to drive
mobile network usage, data services
are proliferating rapidly. The outlook
for data services stimulates the mobile
carriers with its promise of future
growth.
IT convergence will play an important
role in the development of data technologies
and markets.
Standardisation of IP-enabled voice,
data and video on next generation networks
will bring a wide range of innovative
multimedia services and generate
new revenue streams for the
mobile carriers.
The future looks good for mobile carriers
that embrace the new database
technologies. However, to realise the
markets potential, service providers
need to work closely with handset vendors
and content developers, to create
appealing products and services that
meet customers needs.
Technology has to be converted into
innovative, compelling, content and
applications.
User experience determines
success
Insight into prices that customers are
willing to pay for data services, the use
that will be made of them, the driving
applications and the types of devices
users want, is essential so that mobile
carriers, content and application
developers and handset makers can
guide themselves. Though a wide
variety of intelligent devices with large
colour displays can be expected, it is
not so much technology as price, usefulness
and usability that will determine
the shape of the market to come.
Users are willing to pay for new data
services, but only at fairly lowaffordableprices.
Users are open to new
technologies, and can absorb new features
so attractive prices and suitable
customer education should result in
rapid adoption.
In view of the intense competition,
customers satisfactions with service
quality and customer care are crucial
to building market share. Users tend
to be uncompromising with regard to
service qualityto signal reception,
voice quality, dropped calls, customer
care, technical support, user guidance
and billing issues.
Wireless data in China
All of this is true in China, the largest
cellular market in the world. China
had 320 million subscribers at the end
55