Enterprise superiority play

Jane Wang, Ovum
17 May 2011

Chinese operators are developing different enterprise strategies and emphasizing their different network assets and existing user bases. Despite all just starting, after one to two years of deployment and experience, we can already see strategic differences between them and future development moving in different directions.

Enterprise customers have always generated a significant share of China Telecom's revenue. After obtaining its 3G license in 2008, it has developed an enterprise mobility strategy that includes plans to offer integrated fixed-line and mobile services to enterprises. China Telecom's large base of fixed-line enterprise customers is a key competitive advantage and a significant addressable market for mobility services that will generate new sources of revenue.

Compared to other competitors, China Telecom has developed more advanced enterprise mobility solutions and services than its competitors, but there are a few gaps on its services and product portfolio to be addressed. China Telecom still has difficulty sourcing CDMA/EVDO devices.

China Telecom will enhance integration capabilities required to provide integrated fixed and mobile services and advanced mobility solutions for large enterprises. It also will need to reinforce its mobility expertise quickly to protect its large enterprise customer base. It needs to establish strategic partnerships with key vendors to form a comprehensive product portfolio and develop customized approaches to key verticals. The operator also needs to invest in its mobile network quality, which is the core of its mobility offerings.

China Mobile has China's largest market share in terms of mobile subscribers, a mature 2G mobile network and a consistent technology roadmap for the next generation of mobile services for enterprises. However, compared to China Telecom and China Unicom, China Mobile has few existing enterprise customers and lacks the fixed-line networks needed to support fixed-mobile convergence (FMC).

Therefore, China Mobile's enterprise customer strategy is to highlight its mobile advantages to overcome its fixed infrastructure limitations and to attract enterprise users from its competitors. In addition, while it tries to develop systems integration capabilities that are required to approach large enterprises, China Mobile is now focusing more on the SME market and developing standardized and modular offerings.

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