Background of the Chinese GSM Market
China is the largest single Global Systems Mobile (GSM) market in the world today, with more than 650 million users despite market penetration below 50%, according to a 2009 report of the GSM Association. The majority of mobile phone users in China opt for prepaid plans based on removable SIM cards, which often come with new subscriber benefits in terms of pricing and other advantages. SIM cards also provide flexibility, as service coverage typically is limited to a specific geographic region and it is more cost effective to simply switch out the SIM card and use a local service subscription when traveling from one area to another. The demand for SIM cards in China is significant, and mobile phone operators are rapidly changing their business models to provide quick configuration of cards for subscribers.
About China Unicom
China Unicom provides a wide range of telecommunication services to customers in mainland China, including GSM and WCDMA cellular business, fixed-line voice, broadband and other Internet-related services, information and communications technology services, business and data communications services, and other related telecommunication value-added businesses. As of the end of 2010, China Unicom had 153.37 million 2G subscribers, 14.06 million 3G subscribers, 47.22 million broadband subscribers and 96.64 fixed-line subscribers.
About SCM Microsystems
SCM Microsystems, a business unit of Identive Group, Inc. (Nasdaq:INVE) (Frankfurt:INV), is a leading provider of solutions for secure access, secure identity and secure exchange. The company offers the world's broadest range of contact, contactless and mobile smart card reader and terminal technology, digital identity and transaction platforms, as well as systems that integrate physical and logical access control. SCM's smart card-based products and solutions are utilized around the world to enable security and identification applications, transaction systems, eHealth and eGovernment programs and physical access systems.