telecom - Is Nokia making the right moves?
Much praise for the Finnish mobile phone maker in the China Netinvestor (heads up by Virtual China) but I do have some doubts on its alliance with Baidu to set up mobile search. All those alliances are non-exclusive so might only have limited impact on the future direction. With 3G getting closer to a roll-out, current mating patterns are interesting.
So, I do have some misgivings on Nokia and Baidu getting together. From off-conference discussions in Nanjing with Nokia representatives I know that they claim that the current infrastructure makes already mobile search possible. The only problem: hardly anybody uses the mobile applications apart from voice and SMS. Poor content, slow speed and relatively high costs make that serice very unattractive for the large majority of the mobile phone users in China.
Baidu - unlike Google - attracts the majority of users, but they tend to be rather young and relatively poor, making them rather unlikely future users of the mobile search.
Now Baidu-users mainly use the service for search for mp3-files to download them. That might only become possible on a larger scale when 3G is into place.
Nokia sides with China Mobile on the 3G-debate and expects the European standard to win dominance over the Chinese standard. While there might be enough reason to see the economic advantages of also adopting the European standard in China, I believe - as you might have read before - that politics will prevail in this decision-making process. For now, I would rather put my bets on the TD-SCDMA in stead of the WCDMA.
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