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The possibility of bringing Apple Inc.’s (NASDAQ: AAPL) iPad to China has created a flurry of negotiating activity among the top three major Chinese mobile carriers (in order of size): China Mobile Ltd. ((ADR) NYSE: CHL), China Unicom Limited ((ADR) NYSE: CHU | HKG: 0762) and China Telecom Corporation Limited ((ADR) NYSE: CHA | HKG: 0728). Here is a quick overview and link to a news stories describing each company’s (potential) interest in distributing the iPad to its customers:

China Unicom (China.org.cn): China’s number 2 mobile carrier and so far the only (but not contractually exclusive) distributor of the Apple iPhone 3G, has also gotten rights to bring the iPad to China as well. The company has not had the kind of phenomenal success in selling the iPhone that other foreign providers have experienced but continuing to work with China Unicom seems like a no-brainer for Apple.

The company will offer two versions of the iPad, one with just WiFi and one with 3G plus WiFi. China Unicom clearly has little upside for the sale of a WiFi only version so it will probably heavily push the 3G model. They are also lucky that in China WiFi may not work very well since the country has its own standard called WAPI. Even if the iPad were modified to work with WAPI — I don’t understand how a WiFi only version could be sold successfully without working on it — the WiFi network throughout China provides very spotty coverage compared to the US and other developed countries.

China Mobile (China.org.cn): Not surprisingly, China’s number one mobile carrier also wants to carry the iPad. If you don’t believe me, here it is from the horse’s mouth:

“We are interested in selling iPad tablet PCs in China.”
– Wang Jianzhou, Chairman, China Mobile (speaking at the Information and Communication Technology (ICT) forum at the 2010 World Expo in Ningbo City, Zhejiang Province)

So China Mobile wants the hot new entertainment device and e-reader. Of course the company was also in heated negotiations to become a distributor of the iPhone last year but couldn’t overcome some serious revenue sharing and technology issues. Has Apple’s underwhelming success with China Unicom softened it up to work with the number one player even if it means bending on some of its key negotiating points?

From a technology standpoint, China Mobile remains incompatible with W-CDMA, the 3G standard that is used in iPhones. The company uses a homegrown Chinese 3G standard known as TD-SCDMA which was largely encouraged by the Chinese government in order to prevent Chinese carriers from paying license fees to foreign patent holders. So even if Apple wants to cut a deal with China Mobile it will still have to overcome the hurdle of making its device compatible with China Mobile’s 3G standard, something that would probably involve chipset modifications to the device that Apple would rather not make.

The other major hurdle for working with China Mobile has always been how the two companies would share revenues and operate the company’s app store. Both Apple and China Mobile like to have control over customer transactions through their devices. It is especially important to note that China Mobile has spent the last year building up a robust e-book platform for devices on its network and would probably be unwilling to cede that sales channel to Apple’s iBookstore. That being said, this issue is a matter of negotiation and may hinge on which company needs the other company more. It’s not clear whether China Unicom’s poor iPhone sales will lead Apple to become more conciliatory at the negotiating table.

China Telecom (WSJ.com): It was recently reported by WSJ.com’s China Real Time Report that China Telecom, China’s number 3 mobile carrier — but number one fixed-line (aka – land line) operator – is expressing interest in carrying the iPad. The previous assumption has been that the company was unlikely to compete for iPad distribution for the same reasons it didn’t seriously engage in iPhone negotiations  — “high costs and stiff competition to secure the rights to sell the device in China.” Nevertheless, recent statements from the company’s Chairman and CEO have demonstrated a softening of that position.

“If there’s demand from customers, we welcome any creative new device. Our focus is to bring convenience and enjoyment to our customers. Since iPad has just been launched, it takes time for us to evaluate the product. Both of us [China Telecom and Apple] have to evaluate the market situation in China to see how large the market demand would be. It will determine whether we have any interest in any cooperation.”
– Wang Xiaochu, Chairman and CEO, China Telecom

（責任編輯：企業網 來源：企業網D1Net ）