Beijing Olympics Stirs Up East Asian Telecom Industry
Success and failure in the telecommunications industry is all about numbers. Number of units sold, number of subscribers, and number of subscribers that upgrade their handset models each time a new technology or feature is available in the market.With a ten-digit population, China alone could already spell a world of difference in winning at these numbers. China accounts for more than 20% of the world population. Therefore, the brand that conquers the Chinese market has virtually conquered the world.
With the 2008 Olympics fast approaching, the telecom industry in China and the world has been working round the clock, to get a better market position.
China is still finalizing its 3G efforts in time for the big event. Meanwhile foreign brands are outwitting one another at getting a chunk of the market. And the easy and effective strategy employed by these foreign companies is to enter into a joint venture and partnership with local brands. Currently, Nortel of Canada, Bell, Ericsson, Siemens, Motorola and neighbor Korea’s LG and Samsung have already established themselves in the dragon’s lair.
In the true fashion of technological developments, China also wants to be the first Olympic host to offer to people the convenience of 3G technology. If plans do materialize, tourists in the mainland will be able to buy tickets and find or reserve restaurants through their 3G cellular phones. The rest of the world will have the option of either receiving regular updates or alerts about their favorite events or watch the games themselves via 3G handsets in real time.
With this latest development, the industry expects the demand for the latest models that support the 3G feature to reach as high as two hundred million. And cellular phone companies with loads of 3G handsets to sell have already set up camps in the mainland to ensure that their aggressive marketing campaigns are able to catch the taste of the Chinese market.
At the end of the day, when all this hype and excitement has subsided and the Olympic dusts have settled, the industry will go back to its seat and again reckon the numbers. Will targets sales be met? Will company growths punch in the right projected values? Everyone is optimistic about the Olympic results as well as the development and progress in the host country that has been its landmark aftermath.