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China to issue 3G licenses only when time is right

December 4, 2002

The Chinese government has not set a timetable for the issue of 3G licenses said Wu Jichuan, Minister of Information Industry. The granting of 3G licenses depends on market demand for the new technology, Wu added.

"The question is not on licenses. The technology of 3G has been developing very rapidly. When are we going to have 3G applications? When will 3G be commercially viable? That's the crux of the matter," Wu said.

"We have to nurture the market. It will work only if there is a market, if there is a demand," he told the press.

China will conduct trial runs on the technologies and their related linkages with 2G and 2.5G technologies. Following problems in the European market, China will not rush into 3G and will keep a close eye on 3G development in other countries.

Meanwhile, Wu said the government had no plans to impose the homegrown Chinese 3G TD-SCDMA standard on mobile operators when it issues licenses for the service. The comments follow concerns that the government might force some Chinese carriers to adopt TD-SCDMA. Wu expressed that no one technology will be the dominant standard and will depend on how the market develops.

There is speculation that the government is delaying the issue of 3G licenses until TD-SCDMA is ready to rollout. Datang, co-developers of TD-SCDMA, claims the technology is more flexible, cheaper and can handle more data and calls than WCDMA and cdma2000.

 


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