3G service in China necessary

April 9, 2006

China's Minister of Science and Technology said that it is necessary for China to launch the third generation mobile communication (3G) service.

The 3G service will play an important role in promoting China's telecommunications market, said the minister, Xu Guanhua, at the China Development Forum 2006.

Xu said his ministry has kept a close eye on China's 3G progress and made careful analysis and investigations into the market prospects.

The ministry, along with other government departments, has given strong support to China's home-grown 3G standard TD-SCDMA .

Much progress has been made, Xu said, adding that he hoped TD-SCDMA will soon take further steps forward.

Xu said his ministry is also pleased to hear the development in the other two 3G international standard CDMA2000 and WCDMA.

As it concerns huge investment in fixed assets, there are different views on whether China should launch 3G service now.

Deng Shoupeng, director with the Development Research Center under the State Council, estimated that in the six years following China's launch of 3G service total required investment could reach 600 billion yuan (75 billion U.S. dollars).

The Ministry of Information Industry, China's telecommunnications regulator, has said that it would bring down regulations and policies on 3G technology this year.