COMPUTER-CHINA

China is the largest 3G mobile phone market in the world, with 583.5 million users at the end of April, according to figures from the Ministry of Industry and Information.

Benjamin Tan, director of Microsoft’s Mobile Communications Business in China, said the company is also teaming up with local retailer D.Phone to open retail stores in China selling various phones using the Windows Mobile software.

Microsoft has opened nine such stores with D.Phone since October 2007 and plans to open a total of 50 by July of 2009.

In addition, Microsoft has opened 21 retail outlets selling 3G mobile phones with electronics distributor Digital China Holdings Ltd.

The retail stores represent a new sales model tailored to the China market, where most consumers buy their phones and operator subscriptions separately.

“Greater China is different from North U.S and Europe. Operators are not as involved in promoting phones to consumers,” Tan said.

Demand for advanced smartphones that carry the Windows Mobile operating system will be boosted in China by the introduction of third-generation wireless services, which allow a higher-speed mobile connection, Tan said.

The Internet habits of China consumers show they are particularly well-suited to take advantage of the faster connection speeds that a 3G phone would provide.

For instance, 80 percent of China consumers use the Internet for streaming media, the highest percentage in the world, while less than 50 percent use the Internet for email, Tan said.

“The China do not have the same legacy that almost holds back other markets from broad adoption of the latest technology, and we believe that when fast connections are available on 3G mobile phones this will carry over very naturally,” Tan said.

Over the weekend, China announced a restructuring of its telecommunications industry that will merge six telecom companies into three. Once the restructuring is complete, the government will issue licenses for 3G services.

MICROSOFT Corp. expects sales of 3G mobile phones with its software in China boom up in the next fiscal year beginning July from close to 2 million units estimated for the year ending June 30, a company executive said yesterday.

more COMPUTER information

"Various influencing factors are transitioning to a point where embedded 3G will become superior from a cost perspective compared with previously used alternatives, such as Wi-Fi hotspots and hotel broadband for wide-area use," said Leslie Fiering, research vice president at Gartner.

Gartner said the high cost of the hardware and steep monthly charges have so far convinced businesses to shy away from investing in 3G Notebook computers. But the analyst believes this will start to change by the end of 2008.

"Our standing recommendation against embedding wireless WAN (WWAN) cards in notebook computers -- except for applications with a clear return-on-investment justification -- has been based on lack of global coverage, high costs and poor asset protection," said Ken Dulaney, vice president and distinguished analyst at Gartner.

"However, new technologies and pricing due by the end of 2008 have the potential to eliminate the problems of embedded, wireless 3G notebook computer purchases."

Gartner said 3G Notebook computers would become a viable proposition for "moderate to extensive travelers" in 2009 following the availability of chipsets that combine multiple technologies and frequencies to provide nearly "universal geographic coverage."

The analyst said such technologies promise a three-year "useful life." 3G operators are also beginning to recognize the value of going beyond two-year contracts to include daily and monthly rates, as well as programs for letting international travellers use local rates on pay-per-day plans, Gartner said.

Notebook computers with embedded 3G capability could become a must-have for businesses from next year, with new technologies and pricing plans making them more viable purchases, according to Gartner.