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Rumor: China Telecom to Launch iPhone 4S by March

CCID, 1/16/12

A source at Jiangsu Telecom, claiming to have internal information, said recently that the China Telecom (NYSE: CHA; 0728.HK) edition of the iPhone 4S would go on sale in February or March. The operator has begun work on a "Dragon Plan" for the handset.

According to a source at Shanghai Telecom, the "Dragon Plan" is divided into two phases: an initial three-month trial phase (including introducing and familiarizing subscribers with contract plans and training salespeople) promoting six handset models as a way of laying the foundation for the launch of the iPhone 4S during the second phase. The six handsets to be introduced during the first phase will include three dual-network, dual-standby phones -- the Motorola XT882, the Yulong Coolpad D5855, and the ZTE (0763.HK; 000063.SZ) N780 -- and three additional handsets -- the Coolpad D5855, ZTE N780, and Lenovo (0992.HK) A390e -- featuring 3.5" displays. The selection of the first-phase handsets has been carefully considered, as the iPhone 4S also features a 3.5" display and dual-network, dual-standby connectivity.

The "Dragon Plan" is being promoted through concerted efforts around the country, and offers standard subscription plans for the operator's E-Surfing 3G Lexiang service and E9 broadband internet service, a standard 42% handset and talk-time subsidy for all handsets, and coordinated promotional and sales efforts at all China Telecom provincial subsidiaries since the announcement of the plan on November 30 and the beginning of sales on December 1.

Editor's Note: Rumors of China Telecom's "Dragon Plan" first began to surface in mid-September 2011, at which time industry sources suggested China Telecom would begin selling the iPhone 5 from October 2011, dedicating RMB 1.5 bln towards an iPhone 5 promotion called the "Dragon Plan." For more background on this topic, please see "Rumor: China Telecom to Sell iPhone 5 Next Month," MD 9/16/11 issue, and "Rumor: China Telecom to Sell iPhone 5 Next Year," MD 9/19/11 issue.

Keywords: package handset model China Telecom iPhone handset wireless 3G 0728.HK CHA smartphone marketing

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