China United Telecommunications Corporation (China Unicom), the country's second largest mobile operator, announced yesterday that it is soon to start dual-mode mobile phone services, according to Thursday's China Daily.

"Problems concerning the technical level for the service are all solved and ready now," said Zhang Zhijian, general manager of China Unicom's Technology Department, yesterday in Beijing.

"We are very confident about the new service as it will enable our customers to enjoy the services from both our networks and provides a new communication experience," said Yu Yingtao, deputy general manager of the Marketing Department of China Unicom.

With the brand name of "World Wind," the dual-mode mobile phone service supporting both GSM (global system for mobile communications) and CDMA (code division multiple access) networks enables users to transfer from GSM and CDMA networks automatically.

China Unicom is the only telecom operator that runs the two different networks.

Though Yu didn't say when the service would be finally unveiled, he said rumours of a start-up date on July 19, the anniversary of the company, were not correct.

Analysts believe the service will be a key strategy for the company to ensure the sustained development of the two networks and make the two more complementary.

According to Yu, international roaming will be one of the most promising selling points for the service as there are inconsistent telecommunication standards worldwide.

He said the service does not only work on both GSM and CDMA mobile networks in China but also operate in other countries.

"The birth of the dual-mode phone service will greatly boost the development of the telecommunications industry as it ensures seamless communication and offers a whole new way of communication," Yu said.

Analysts say the service is part of China Unicom's efforts to differentiate its services.

"We are targeting high-end users," Yu said.

Yesterday, three dual-mode handsets were displayed by Motorola, Samsung and LG Electronics, the first three handset makers designated by China Unicom.

Yu said the price for the dual-mode phone will be very competitive.

Analysts believe that the price for the handset is likely to be set around 4,000 yuan (US$481).

"We are going to roll out a series of promotion activities to attract more customers who are interested in high-end products," he said. But he refused to elaborate on that.

It is reported that China Unicom is to purchase more than 500,000 dual-mode handsets this year.

Analysts said the dual-mode solution was a powerful revenue generator this year as the Chinese Government was unlikely to release 3G licences until next year.

According to the company's blueprint, the "World Wind" is scheduled to be officially kicked off first in 15 major cities such as Beijing, Shanghai and Guangzhou.

The company projects that telecommunications customer demand will remain strong this year, and there will be more intense competition in the domestic market.

Source: China Daily

(China Daily)