“3G service will definitely be available during the Olympic Games.” That was the commitment from the Chinese government, and to some extent, it was honored.
During the Olympics, nearly 100,000 volunteers got to use free TD-CDMA mobile phones provided by China Mobile. The TD-SCDMA services included Push-to-talk over Cellular (PoC), volunteer information distribution, an Olympic information package, Olympic express, mobile TV and an Olympic-themed multi-media ringtone.
In a bid to encourage overseas visitors to try China’s homegrown third-generation service, China Mobile spent over RMB50 million (US$7.3 million) on 20,000 TD-SCDMA mobile rental phones. The international sporting event was the debut of TD-SCDMA.
The Olympics were a rare opportunity to promote TD-SCDMA. With prodding from the newly established Ministry of Industry and Information Technology (MIIT), China Mobile showed unprecedented determination. One month before the Olympic Games, TD-CDMA development was fast-tracked: bidding for the second batch of 200,000 TD-CDMA devices finished; a television advertising blitz was launched; incentives were handed out to encourage new users; and a batch of Mobile Subscriber Integrated Service Digital Network (MSISDN) numbers were introduced across the country.
From 20,000 users in early April to 100,000 users during the Olympics, China’s 3G standard has successfully taken advantage of the grand event to promote itself. The accelerated pace of commercialization of TD-SCDMA has given it a leading 3G market advantage. However, the strategy has now created more expectations for post-Olympic development of the technology, and that means a lot more pressure for developers.
The Olympic Pressure Cooker
The 2008 Olympic Games resulted in a big jump forward for TD-SCDMA in the 3G arena. It also got a lot of support from the MIIT. When Li Yizhong became the new Minister in April, the commercialization for the standard had just started. Li was a strong supporter of TD-SCDMA. In mid-June, Li sat down with TD-SCDMA experts and operators to discuss the strategy for the development of TD-SCDMA’s service. Promoting TD=SCDMA and other 3G technologies was one of his top priorities.
By early July, the MIIT had defined two “priorities” for the Olympic TD-SCDMA campaign: building more TD-SCDMA base stations in Beijing to ensure voice quality; and begin trying out TD-SCDMA mobile TV during the Olympics. The Olympic Games would play a decisive role in the accelerated commercial deployment of TD-SCDMA.
Under the orders of the MIIT, China Mobile rapidly improved the coverage of TD-SCDMA in Beijing with vastly improved infrastructure. Construction of base stations in major Olympic cities was accelerated, especially in Beijing. China Mobile also added more than 500 additional base stations before the Olympics. During the Games, more than 3,000 engineers fanned out across the city to provide real-time monitoring of the 2,300 outdoor and 1,200 indoor sites in Beijing.
China Mobile also boosted spending on TD-SCDMA marketing and promotions. RMB100 million (US$14.6 million) was earmarked for subsidized phone purchases and services. Subsidies ranged up to RMB1,500 (US$219) for every phone buyer. In cooperation with Samsung, China Mobile delivered about 15,000 TD-SCDMA packages to the Beijing Olympic Organizing Committee (BOCOG), including SIM cards, phones and nearly RMB3 million (US$438,000) in traffic charges. To lure more consumers, China Mobile devised a special one-month refund offer on all domestic call charges. As one official with China Mobile put it, “We promoted TD-SCDMA in an unusual manner.”
To meet the Olympic commitments, the entire TD-SCDMA eco-system was mobilized. On July 31, Lenovo Mobile joined with Spreadtrum to deliver the Lenovo TD900 mobile phone, a TD-SCDMA product that supports digital TV, to China Mobile. Despite the fact China Mobile belatedly revealed its requirements for TV-enabled TD-SCDMA phones, several manufacturers miraculously managed to deliver them by the end of July. They managed to complete the design-to-delivery process in about 30 days.
After so many setbacks, China’s 3G standard finally made its high-profile debut. The event provided an opportunity for ordinary Chinese users to understand what 3G and the TD-SCDMA technology are. In this context, the Beijing Games marked a major milestone for development of TD-SCDMA. “If TD-SCDMA missed the opportunity offered by the Olympic Games, it might be marginalized,” says Li Jinliang, a senior engineer with China Electronics Technology Group Corporation. “Given that TD-SCDMA was at a turning point, if the participants were able to leverage the Olympic opportunity to promote commercialization, the TD-SCDMA industry might charge ahead. However, if it missed the chance, the industry might stop or even fail.”
However, from another perspective, TD-SCDMA might not be able to maintain the momentum it got from the Olympics. Problems and uncertainties continue to linger around. In fact, there are many questions about TD-SCDMA development that remain unanswered.