China Telecom, the country’s leading telecommunication operator, formally launched its online application store, eStore, on March 17, half a year later than originally planned.

eStore will sell cell phone applications and services. The launch of this platform is another key move for the company to get an upper hand in the 3G competition.

Mobile telecom giant China Mobile launched its app store, Mobile Market, last August. Smaller rival China Unicom’s Unistore is in the final stages of preparation.

eStore currently offers services such as audio and video downloads, news, games, finances, books, travel planners and friends. Almost all cell phone-oriented applications and software platforms are found here.

During the trial period, eStore will be free to everyone. After the trial period, China Telecom will keep 30 percent of its business revenues and give the rest to app developers.

Unlike other online app stores that are open only to their subscribers, eStore is open to all cell phone users, regardless of whose services they are using. IPTV can also access the store.

So far, more than 500 applications have been uploaded to eStore. China Telecom is cooperating with Microsoft and Qualcomm so that its users will have access to their programs and services through the app store, such as Brew MP.

In addition, China Telecom seeks cooperation so that its eStore will soon be compatible with operating systems like Linux, WebOS and Symbian, said He Zhiqiang, the company's market chief.

The sudden market interest in online app stores follows the success of Apple's App Store. Chinese telecom operators also wish to profit in the value-added service and data services in the era of 3G networking.

As China’s telecommunication industry enters the 3G era, its network will be capable of more than delivering voice conversations, said China Unicom’s Chairman Chang Xiaobing at this year’s annual parliamentary conferences. The advantages and unique features of the 3G network lie in the various applications that it embeds.

Chang's idea was positively echoed by Wang Jiazhou, his counterpart from China Mobile, who sees business growth in data and information service.

With the rise of data and information services, the voice sector is becoming less significant for industry profits. The company that best pleases customers in the growing sectors will win the 3G competition.

Local app stores are still in their preliminary stages and imitating the operating models of foreign operators. On the success of Apple's App Store, industry expert Hou Ziqiang said Chinese customers are already used to free services on the Internet, so whether these emerging online app stores can survive and prosper still needs to be tested in the market over time.