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China Mobile Increases Subsidies For TD Terminals

According to China's Huaxia News, China Mobile is making a big change on policies regarding TD-SCDMA and one of the major changes is to increase the subsidy for TD-SCDMA terminals from the current of less than CNY200 to about CNY1000.

An unnamed TD-SCDMA mobile phone manufacturer said that China Mobile will greatly increase the subsidies for TD-SCDMA terminals, which is an important message for nearly all the manufacturers in the TD-SCDMA sector

By May 20, China Mobile had issued TD-SCDMA numbers to about 15000 users, but it only sold about 3000 TD-SCDMA mobile phones, which account for about 1/6000 of the country's mobile phone user increase in a month. China Mobile reportedly has realized the market's mediocre response to TD-SCDMA and wanted to change the situation by increasing the subsidies for it.

In addition, China Mobile will change the sales channel for TD-SCDMA terminals. Instead of selling the terminals at few of its 3G demonstration halls, the company will open 20% of its self-owned business halls in eight Chinese cities by the end of May and open 50% of them by the end of June to the terminals.

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