The ink was not yet dry on the exclusive iPhone deal between China Unicom and Apple when China Mobile announced it would challenge the iPhone with a new smart phone system of its own. With the surprise appearance of the Ophone, industry insiders now say that 3G competition in China is beginning to sizzle.

3G network provides faster data transmission and mobile Internet access. It also enables telecom carriers to offer a wide range of advanced mobile phone services. New cell phone features and functions are attractive to many consumers, which is why domestic wireless carriers are speeding up their 3G market expansion and increasing handset penetration.

One Beijing consumer said "I use my cell phone to watch movies and read e-books.I develop some software for myself. It's tailor-made for me."

One Beijing consumer said "I only use a mobile phone to make phone calls. I'm already retired, and I won't use it much at home."

One Beijing consumer said "I think 3G phones have better functions. They could be fun to play with."

Figures show that during the first half the year, China had 54 million new mobile users. Revenue from non-traditional voice-based services was up 7.5 percent. This has made mobile operators realize that value-added services will be the new profit generator for the telecom sector. That is why market competition is hotter than it's ever been.

(CCTV September 1, 2009)