China Telecom plans iPhone launch year-end

HONG KONG (Reuters) – China Telecom Corp Ltd plans to offer its 106 million subscribers the Apple Inc iPhone by the end of 2011, sources said on Wednesday, which would make it the second operator to do so in the world's largest mobile phone market.

The move would help China Telecom, the smallest of the country's three telecommunications operators, cement more high-end 3G users in a competitive market in which handset subsidies offered by carriers are squeezing margins. China Telecom operates the country's largest fixed-line network and is a relative newcomer to the mobile market.

"The reason telecom operators are fighting for the iPhone business is because everybody is trying to grab as many 3G users as possible," said Jane Wang, an analyst at UK-based research firm Ovum. "The only way to keep costs down is to build up such a user base." Read more...