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China Unicom, the country's second-largest mobile operator, has launched a "push mail" service as part of its drive to woo business customers.

 

This service keeps subscribers connected so they can access a range of wireless information using their mobile devices.

 

E-mails, for example, are sent directly to customers without them having to first log on to the Internet.

 

The launch of the country's first commercial push mail service underlines Unicom's growing desire to stay ahead of its larger rival, China Mobile, in the corporate wireless valued-added service (WVAS) market.

 

Corporate users generally generate much higher average revenue per user for mobile operators.

 

Unicom has called its push mail service "RedBerry," a clear sign that the firm is ready to challenge the "BlackBerry" push mail service being tested by China Mobile.

 

Blackberry, created by Canada's Research in Motion (RIM), is popular in the United States and Canada, especially among office workers and business executives.

 

By the end of last year, RIM's BlackBerry subscribers more than doubled to 2.5 million, with revenues also more than doubling to US$1.3 billion.

 

RIM has long been seeking entry into the Chinese market, but has faced regulatory obstacles.

 

China Mobile is testing the BlackBerry in Beijing and customizing mobile phones for the service. It may be introduced this year, industry sources said.

 

Manufacturers such as Nokia and Hewlett-Packard have already launched mobile phone models with push mail functions in China.

 

Unicom said its nationwide RedBerry push mail service, based on its CDMA 1X mobile networks, supports various files, such as text mail, pictures, audio and video streaming.

 

Currently, RedBerry subscribers can only enjoy e-mail services provided by China Unicom.

 

"We will join other Internet email service providers under a new business model to enable more users to enjoy push mail services," said a Unicom spokeswoman.

 

China Mobile and Unicom started to focus on corporate services from 2004.

 

"However, many of these services have experienced limited growth due to poor marketing, slow network speeds and a lack of tailored solutions," said Duncan Clark, managing director of Beijing-based research and consulting house BDA China Ltd.

 

"E-mail is a killer application for corporate WVAS," he says.

 

The key to targeting corporate customers is to help them achieve savings on communication costs and gain operational efficiency, explained Clark.

 

"To do so, mobile operators have launched tailor-made solutions serving government organizations, financial institutions, logistics and retail firms, and the police."

 

Norson Telecom Consulting, another consulting firm based in Beijing, said the commercial prospects for push mail remained bleak in China, as it will take time to encourage consumers to use the service.

 

There are also problems with building business models and marketing the service.

 

(China Daily April 5, 2006)