Network Switching Worries China Unicom (NYSE:CHU), Threatens To Freeze Accounts
Tuesday, November 23, 2010 3:28 PM

Related Stories



China United Network Communications Group (NYSE: CHU), China's only mobile operator offering Apple Inc's (NASDAQ: AAPL) iPhone, is very disturbed with customers replacing its SIM with its rival's network on Apple iPhones.

The company has warned that it will take strict actions against those who will separate the bundled subscriber identity module card from iPhones. Unicom Group has announced on its website that customers may get their deposits frozen if they indulge in such activities. The company said that iPhone4 is in short supply because some buyers purchase them and resell them after separating the SIMs.

China Unicom  has entered into an exclusive deal with Apple for iPhones in the country. In the 3G space, it is facing tough competition from its rival China Mobile Communications Corp (NYSE: CHL).

According to data released by the companies, China Mobile added 1.7 million 3G subscribers last month in comparison to Unicom's 1.1 million subscribers.  Apple's iPhone 4 user base has contributed 10 percent of China Unicom's newly added 3G users. So, China Unicom would not like to loss this customer base at any cost.

The pressure is high on China Unicom to restrict Apple iPhone 4 users from switching on to China Mobile's network. Customers of the rival company don't switch over to China Unicom's network. The recently issued warning will help China Unicom to retain its existing subscribers and increase its new subscribers. Currently, there's a huge demand for Apple iPhone 4 in China. 

At the end of last month, China Mobile had a total 575 million mobile phone subscribers including 16.98 million 3G users.On the other hand, Unicom had a 163.8 million mobile subscriber base including 11.66 million 3G customers.

China Unicom's Hong Kong listed unit dropped by 1.7 % to HK$10.28 on Monday, whereas, China Mobile's unit listed with the same market dropped by 1.4% to HK$77.80.

Regarding short supply of Apple iPhone4 in the country, China Unicom has said that the shortage may continue till the end of this year.

 

Sponsors

Symbol :

Advertisement

Market news:

  • Gov't re-interviews Edwards witness Mar 31, 2011 09:08 PM

    • WASHINGTON - Prosecutors investigating former Sen. John Edwards spent several hours Thursday re-interviewing the man who posed as the father of Edwards' out-of-wedlock baby during the 2008 presidential campaign, suggesting they are weighing the strength of their chief witness before deciding whether to indict the former candidate.
    • The interview is particularly notable because of its timing.
    • Young has already been questioned by a grand jury investigating Edwards in 2009 and the Justice Department is considering whether to move forward with an indictment.

      • Ohio police, firefighters decry bargaining limits Mar 31, 2011 08:21 PM

        • CLEVELAND - Unlike Wisconsin's high-profile effort to limit collective bargaining rights for public workers, Ohio's new law includes police officers and firefighters - who say it threatens the safety of them and the people they protect.
        • The firefighters' union in Cleveland plans to hit the streets and help gather signatures.
        • Patrolman Michael Cox, a 15-year veteran of Cleveland's police force, said Ohio overlooked the inherent risks of police and firefighting work when lawmakers included them in the bill, which passed the Legislature on Wednesday and was signed into law by Republican Gov. John Kasich on Thursday.

          • A-Rod nearly outearns Kansas City Royals Mar 31, 2011 08:12 PM

            • The Kansas City Royals are barely making more than Alex Rodriguez this year.
            • The salaries for Kansas City's 27 players on its opening-day roster and disabled lists total $36.1 million, according to an analysis of major league contracts by The Associated Press.
            • A-Rod alone makes $32 million atop the New York Yankees' $201.7 million payroll.

              • Bronx Zoo cobra found in its reptile house Mar 31, 2011 08:12 PM

                • NEW YORK - A highly venomous Egyptian cobra that went missing at the Bronx Zoo was found Thursday after nearly a week on the lam, zoo officials said.
                • The approximately 24-inch snake was found coiled in a dark corner of the zoo's reptile house, about 200 feet from where it had escaped from a holding cage outside the exhibit into a space describe by officials as a "labyrinth" of pipes and equipment.
                • "As you can imagine, we are delighted to report that the snake has been found alive and well," the zoo's director, Jim Breheny, said during a news conference as he stood in front of a huge picture of the snake projected on a screen.

                  • Russian billionaire buys $100M Silicon Valley home Mar 31, 2011 08:12 PM

                    • SAN FRANCISCO - The U.S. housing market may be struggling to regain its footing, but the $100 million sale of a single-family home in the heart of Silicon Valley shows that luxury properties are still in demand.
                    • Russian billionaire Yuri Milner, a big investor in Facebook, daily deal website Groupon and "Farmville" game maker Zynga, bought the lavish, 25,500-square-foot mansion in Los Altos Hills, Calif. The sale is believed to be one of the largest in U.S. history for a single-family home.
                    • Trump told The Associated Press at the time that it was the largest estate sale ever in the U.S.

                      More news


Advertisement

    Recent Estimates

AnalystFirm NameSymbolEPS Estimate
Benjamin ThurmondGlobal Electronics HGSI($0.44)
N/AN/A LNN$0.70
NemoXXXXX MOS$1.08
XXXXXXXXXX WMT$0.96
XXXXXXXXXX MSN$0.10
MROWEYEON TXN$0.58
AkiraXXXXX AAPL$5.29
richnone PANL($0.04)
XXXXXXXXXX PRWT($0.41)
XXXXXXXXXX JOYG$1.06