China Unicom signs three-year deal with iPhone

The deal casts doubt on future partnerships between iPhone and China Mobile, China’s largest carrier.

Apple has been looking to move into the Chinese market, which boasts the largest mobile handset market in the world, for some time. Talks began in earnest with China Unicom, the country’s second largest carrier, in January of this year, after it became the first Chinese mobile carrier to begin building a standard, GSM-based 3G network.

A-Guang, the ECD of RayNetOM who developed the ‘Wow’ campaign for China Unicom, commented: “Initially iPhone was believed to be in talks with China Mobile. The biggest problem is that China Mobile is using a homegrown 3G standards that are not compatible with many phones. China Unicom operates a 3G technology compatible with the iPhone in the US.

Steven Chang, CEO, Optimedia China, suggested there was still room for China Mobile to partner with Apple: “The is only for the first generation of 3G iPhone. Many 3G packages still have not launched yet, unlike in Hong Kong and Taiwan where there is no shortage of 3G content and suppliers.”

Recents reports suggested Apple had agreed to disable its iPhone WiFi connection after pressure from the Chinese Government..