• 报告人 : 杨志强，中国移动技术部副部长

China Mobile Communications Corporation

Mofang Li

Feb 19, 2003

Opportunities and Challenges in Mobile Communication Market of China

MPTMPT

1992

MPT

Sale & Production

Telecom

Posts

UnicomUnicom1994

Telecom

Mobile

Satellite

Paging1999

CNCCNC1999

1999

2000

2001

1998

MIIMIIMPT ME

2002

Telecom Industry Reform Milestones

37. 4%

32. 5%

12. 1%

16. 6%1. 4%

Market Share of Each Domestic Carrier

＋

Market Share of Each Carrier by the end of 2002

Rapid Growth in China Mobile Communication Market

0

5000

10000

15000

20000

25000

1996 1997 1998 1999 2000 2001 2002

Growth in Mobile Subscriber Base Growth in Mobile Service Revenue

0

500

1000

1500

2000

2500

1995 1996 1997 1998 1999 2000 2001 2002

• The number of mobile subscribers has reached 206.61 million, among which thatof China Mobile totaled 138 million by the end of Dec. 2002; • The revenue from mobile services has reached RMB 214.56 billion, accounting for 47% of the telecom industry as a whole by the end of Dec. 2002.

Unit: 10 thousand Unit: 100 Million

Source: MII

CMCC CMCC

0

50

100

150

200

250

1999 2000 2001 2002

Data Communication Market in China

Growth in Data Communication Users Growth in Data Service Revenue

The number of Internet users exceeded 50 million in 2002; the data service had a

revenue of approximately RMB 20 billion in 2002, among which China Mobile accounts for RMB

5.21 billion.

CMCC0

1000

2000

3000

4000

5000

6000

7000

1998 1999 2000 2001 2002

CMCC Development Strategy for Data Services

MONTERNET

GoTone M-Zone ShenZhouXing

SMS Platform GPRS Platform

1 Model

2 Platforms

3 Key brand

The Business Model of “All-Win Cooperation” Focusing on Monternet

Information Charge: SP charges to users based on month or on traffic volume, and China Mobile shares 9%-15% of the

revenue.

Partnering ICPs and ISPs In Monternet

5

15

30

1000

500

200

万元 数量

Growth in Revenue of Monternet ISPs and ICPs, 2002

313

500

0

100

200

300

400

500

600

2001 2002

Growth of Monternet ISPs and ICPs

The stock prices of China’s .COMs soar in Nasdaq(Netease flies to $16 from less than $1)

More than 500 Partners, including domestic and international websites ， media, governments, public service institutions and businesses.

Set up and Improve SMS PlatformsChina Mobile has established a nationwide Coverage SMS network, with more then 100 SMSC and Monternet SMS gateways. .

BSS

BSS

MSC

MSC

SMS center

Monternet sms ce

nterIntercommect SMS Gatewa

yInternational Interconnect SMS Gateway

SP platform

GSM

CMNET

International operator Other operator

SCP

GPRS Network

GPRS Trial in 7 Provinces

GPRS Phase 2 Expansion

Commercial Trial in 25 Cities

Commercial Launch on May 17

1999

2001

2002

Currently China Mobile has built 273 GPRS local networks, almost covering the whole country and providing good bearer networks for the development of mobile

data services.

Building Various Service Platforms Step-by-Step

China Mobile has built WAP and MMS platforms and will build other service

platforms such as JAVA, Micro Payment, Location-based Service , etc.

BSS

BSS

MSC

SGSN

SMS Center

JAVA OTA

Download center

SMS Gaterway

WAP/JAVA ON-

LINE Service GSM

CMNET

GPRSGGSN

NAS

MMSC

LBS platform

Small Amount Payment Platform

LBS Service

WAP Gateway

MMS Service

Montenet SMS Servic

e

Micro Payment Service

Building Data Service Management Platforms for diversified services

GSM/GPRS/SS7GSM/GPRS/SS7BSS

BSS

SMSG

Micro Pay

MMSC

JAVA

WAP

LBS

CMNET

DSMP

NMTNMT BOSSBOSS

SP

SP

SP

Corporate Info. Distribution System

Ring tone, image download

Headlines For The Hour

Email(SMS/WAP)

KJAVA

Color Website

MMS

WAP PUSH

Public Security and Police System

Dedicated Access to Banks

Remote Access to Office

Wireless WAP Office

Interactive Game

Cartoon

My Photo Album

Music Card

Who am I ？Mobile Yellow Pages

Shortest Route

Location-based Service

Products for Individuals

Corporate Products

Platform Support

Small Amount Payment Platform

QoS GuaranteeMobile Securities

Info. Sources Billing

Mobile Football Lottery

Xinhua News

Mobile Chat

Rolling Stone

IVR

Mobile Flash

Service Planning based on services platforms

time

Brand Framework

ChinamobileChinamobile

GotoneGotone M_zoneM_zone shenzhouxing

shenzhouxing

MoternetMoternet

Group Total solution （ M － GROUP ）Group Total solution （ M － GROUP ）

Launch Brand based on market segmentation

企业品牌

主品牌

与 SP 合作的个人移动数据业务统称面向集团客户的业务统称

全国性品牌： M_Zone

品牌主驱动力：品牌形象、 新业务、资费套餐

全国性品牌： GoTone

品牌主驱动力：品牌形象、服务、回馈、有针对的产品

全国性品牌： ShenZhouXing

品牌主驱动力：品牌形象、资费

全国性品牌

时尚化的品牌，针对年轻、时尚用户

商务型的、优质服务的、可提供多种增值服务的品牌，针对中、高端用户

面向大众的、资费灵活的品牌，针对低端用户

A rapid growth from

1999-2002

300 million Messages sent

in 1999 and 80 billion in

2002

SMS is a main driving

force for the development

of data services.

CMCC SMS Development

3 10

159

800

0

100

200

300

400

500

600

700

800

900

短信量（亿条） 3 10 159 800

1999 2000 2001 2002

CMCC SMS Development (1999 － 2002)

CMCC Huge Growth in GPRS CMCC Huge Growth in GPRS

Since the CMCC GPRS commercial launch on May 17, 2002, the traffic volume has reached 6.25 million MB by the end of December

0

200000

400000

600000

800000

10000001200000

1400000

1600000

1800000

2000000

GPRS traffi c 109555 292370 406550 581561 696819 961791 1E+06 176806

5 6 7 8 9 10 11 12

Traffic Volume Per Month After Commercial Launch on May 17, 2002 (MB)

MMS Widely Accepted

Shortly after MMS was launched in Oct.2002, the messages

sent totaled 3.8 million by the end of Dec. 2002.

170571

942445

2624508

0

500000

1000000

1500000

2000000

2500000

3000000

10 11 12

Monthly Traffic After Launching MMS

2002

• It is expected that the volume of data

communications market would be RMB

75.3 billion, among which mobile data

will account for RMB 30.1 billion,

representing 40% of the total.

• The annual compound growth rate of

data communications market would be

51% from 2001 to 2005.

• The annual compound growth rate of

fixed data communications market

would reach 35% from 2001 to 2005.

• The annual compound growth rate of

mobile data communications market

would reach 131% from 2001 to 2005,

far beyond that of fixed data services.

Data Communications Market Forecasts

145.60

211.87

305.99 472.35

10.40

22.59

50.49

129.95 296.92

748.82

10.7%

16.5%

27.5%

39.7%

7.1%

0

100

200

300

400

500

600

700

800

2001 2002 2003 2004 2005

Mar

ket S

cale

(R

MB

100

M)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Prop

ortio

n

National Data Service Market Mobile Data Communications

Proportion of mobile data service in all data services

Source: Research Company of China

Mobile Data Market Unfolds Great Prospects in China

Delays in GPRS, WAP and MMS terminal

launch

Inconvenient set-up, with no user-friendly

interface

Trouble for ISP to create new services without open API

Poor terminal interconnectivity among

manufacturers

How to control

terminals effectively

Challenges － Terminal

Poor Interoperbility

Poorly Standardized ！

How to manage service platforms with high efficiency

Great Variety

Challenges － Service Platforms

Diversified and personalized services

lead to difficulties in promoting

and managing services

Diversified and personalized

services increase

costs of the businesses

Promoting

CostsHow to adapt to diversified,personalized and variablemarket demands

Challenges － Service Management

Service managementService management

enablers enablers

OperatorApplication

xSPApplication

各种手机各种手机

Cellular networkCellular network

互联网接入互联网接入

Web Server

终端设备商 / 用户 移动运营商

Application

Servers

终端 API 运营商 API xSP / 合作方APIS

erv

ice In

teg

ratio

n

IF

服务提供商 / 企业

GPRS /GGSN

MSC /HLR

OSS

NMS

SMSC MMSC WAP GW

messaging

网络传输层

Radio sub

Backbone

CSD-to-IP

Design Engine

Components JAVA

ProvisioningUser Profile

Authentication

Delivery

中间件层

xSP and/or corporate J2EE Application environment

下载

浏览 消息 OperatorApplicationOperator

ApplicationOperator应用

运营商应用

Content Formats

xSPApplicationxSP

ApplicationxSP应用

应用层

DRM

Location

Identity Charging

The setup of OMA give us confidence

The objectives of the Open Mobile Alliance are to:

• Enable consumer access to interoperable and easy to use mobile services across geographies, operators and mobile terminals

• Define an open standards based framework to permit services to be built, deployed, and managed efficiently and reliably in a multi-vendor environment

• Establish one mobile industry standards forum, the Open Mobile Alliance, to function as the driving force responsible for creating service level interoperability

• Drive the implementation of open services and interface standards, through the user centric approach to ensure the fast wide adoption of mobile services

OMA has achieved a lot since it set up

•Over 300 companies from worldwide technology and industries have joint OMA.

•Many fora of the industries have integrated in OMA

•External Liaisons with many leading standard body (e.g. 3GPP/2, GSMA, ITU-T, IETF, JCP )

•Has successfully held 4 interim meetings and 3 TP meetings

•13 WGs established to cover all technical areas of the industry

China Mobile’s Contributions to OMA

China Mobile’s Contributions to OMA

•BoD member of OMA

•Attended almost all OMA meetings

•Submitted 4 contributions to OMA meetings

•Actively take part in REQ, ARCH, LOC, MG and other WGs in the period of TP meetings and through email discussion

•GSMA BoD and EMC member, actively attend some OMA relative jobs such as ******

Willing to do more in OMA community

•Establishing a testing bed in China Mobile Lab

•2G/3G radio and core network

•IP network interconnecting to the Internet

•Data Service Platform such as

•SMS, WAP, MMS, Java, Location etc.

•Terminals

•We’d like to do some IOT job if needed

Willing to do more in OMA community

•Initiating a Mobile Terminal Forum

•Operator

•Terminal vendor

•ISP/ICP

•We’d like to cooperate with OMA to promote the standardization of mobile data terminals

We hope OMA……

•Concern more about requirements from China

•China has the most complicated mobile network infrastructure in the world

•The largest scale in the world

•Complex charging and settlement system

•Devices provided by almost all leading vendors in the world

•Developing very rapidly

•China is urgent to see a standardised mobile data industry

We hope OMA……

•Balance the demand of standardization and flexibility

•Guarantee IOP in a multi-vendor environment

•Keep characteristic of different operators

•Improve the development of OMA job

•The process in OMA

•How to utilize use cases to refine the output of WGs

•……

We believe OMA will give Mobile data industry

A bright future!