China Unicom's plan to introduce Apple's iPhone still under

China Unicom's plan to introduce Apple Inc.'s iPhone handsets may not be as smooth as outsiders have anticipated. Chang Xiaobing, Chairman of China Unicom, said at a press conference held to release the firm's financial statements on March 31 that "negotiations with Apple Inc. to introduce the iPhone are still underway."

According to research firm Wedge Partners, the two parties have encountered some problems during negotiations and a deal could be delayed for months.

A report recently released by Wedge reveals that a list China Unicom recently drafted of the 3G mobile phones to be authorized for its WCDMA network noticeably does not include Apple's iPhone.

According to Wedge's analysis, some problems that might hinder the negotiations are as follows: Apple Inc. is not particularly willing to disable the iPhone's WiFi function, but China's relevant regulations stipulate that the use of WiFi is currently banned on mobile phones; and China Unicom insists on installing its own software, including an iTunes clone.

Wedge said it might take another six to eight months for Apple and China Unicom to resolve their remaining issues.

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