Mobile Virtual Networks opening in China – Business opportunities for Finnish companies

1. Mobile Virtual Networks
opening in China – Business
opportunities for Finnish
companies
Pietro Karjalainen
Finpro Market Opportunity Day
9.5.2014

2. What’s happening in the market?
• More and more consumers
have access to smart
phones
• Mobile internet subscribers
overpasses fixed internet
user in spring 2014
• China issued in December
2013 11 mobile virtual
network operator licenses
and in January 2014 8 more
licenses to Chinese
companies
• The mobile communications
market is opening to private
companies
09/05/2014 2© Finpro

3. License holders have various backgrounds
• The background of Chinese
license holders vary.
Licensees include for
example
– E-commerce giants
– Mobile phone vendors
– Companies involved in
software/media/gaming
industries.
• Companies have different
plans on what services to
offer ranging from normal
mobile communications and
text/data services and from
healthcare to mobile office
solutions
09/05/2014 © Finpro 3

4. Licence holders need to differentiate from each
other
• Mobile virtual network
operators need solutions
enabling service to their
customers.
– For example business
support services and
platforms such as
customer care, billing
system, mobile commerce
platforms and more
advanced services
platforms such as SMSC
or Voicemail
– Typical value added
content such as games
and applications to
differentiate from other
service providers
– In the long run also
offering that is more
specific and targeted to
selected consumer groups
09/05/2014 4© Finpro

5. Operators want to develop concepts to serve
selected clients
• Many of mobile network
license holders will develop
concept to answer certain
segment’s needs.
• For example;
– Funtalk is targeting its
services at active people
with high concern for
personal health.
• This segment will be
offered health related
special services, such as
health management
terminals integrated into
the mobile subscription
– China Telling
Communications aims their
services to segments of
people who love sports,
who take care of health and
family members.
09/05/2014 © Finpro 5

6. Why Finnish provider?
“We will be open for co-op with foreign and domestic
suppliers for development. Finland experience and solutions
can be helpful in the future for MVNOs.”
- Chinese mobile virtual network license holder
• Finland was one of the first countries to issue mobile virtual
network licenses
• Good reputation and technology experience that the local
companies might lack
• Finnish technology providers have both total and partial
solutions
09/05/2014 6© Finpro

7. Finpro in China
09/05/2014 7© Finpro
• Finpro has a strong presence
and networks in the market
• Experts in Finpro trade
center’s are identifying
business opportunities for
Finnish companies

8. Business and growth from China
• Even a small business action in China can bring great cash
flow to a Finnish company
• Key elements to success in China:
– Local business understanding
– Right partners
– Path to the decision makers
09/05/2014 8© Finpro

9. MVNO licensed companies (February 2014)
1st batch (26.12.2013)
天音通信有限公司, China Telling Communications (subsidiary of Telling Telecom Holding (www.chinatelling.com)
浙江连连科技有限公司, Lianlian Technology (www.lianlian.com)
北京乐语世纪科技集团有限公司 Funtalk Century Telecommunications Equipment Retail Chain (www.funtalk.cn)
北京华翔联信科技有限公司 Beijing Huatong Telecom Co., Ltd (www.huaxiangtelecom.cn)
京东世纪贸易 Jingdong Century Trading (operator of B2C e-commerce platform Jingdong) (www.jd.com)
北纬通信 Bewinner Communications (www.bisp.com)
中国万网 HiChina Technology (subsidiary of e-commerce conglomerate Alibaba Group) (www.net.cn)
迪信通 Beijing Digital Telecom, D.Phone (www.dixintong.com)
SoShare在线网络技术 SoShare Online Network Technology (www.soshare.com)
巴士在线控股 Bus Online Holding (www.busap.com)
话机世界 Telephone World Group (www.zjhjsj.com)
5/9/2014 9© Finpro

10. MVNO licensed companies (February 2014)
2nd batch (issued 29.1.14)
苏宁云商 Suning Cloud Commercial (www.suning.com)
国美电器 Guomei Electrical Applicance (www.gome.com.cn)
爱施德股份有限公司 Aisidi Stock Co., Ltd(www.aisidi.com)
厦门三五互联科技股份有限公司 Xiamen 35.com Technology Co., Ltd(www.35.com)
苏州蜗牛数字科技股份有限公司 Suzhou Snail Game Tech Co., Ltd (www.snailgame.net)
中期集团有限公司 Cifco Investment Group Co. (www.cifco996.com)
长江时代通信股份有限公司 Yangzi River Time Communication Stock Co., (www.cjtc.net.cn)
远特(北京)通信技术有限公司 Yuan Tel(Beijing) Communication Tech. Co. (www.yuantel.com)
5/9/2014 10© Finpro

11. Thank you!
pietro.karjalainen@finpro.fi
09/05/2014 11© Finpro