Shenzhen expected first to commence 3G service in China

February 21, 2005

A source close to the Chinese government confirmed that the Ministry of the Information Industry would grant licenses for 3G services before the end of the year with Shenzhen foreseen to be one of the first cities to begin 3G operations.

The insider in Beijing revealed that the Ministry of the Information Industry had asked all 3G operators to get ready for the last commercial test. Operators would start constructing their experimental commercial service network next month and all operators are required to test the domestically developed TD-SCDMA 3G standard.

All operators who pass the test will qualify for official network construction. The commercial test is widely regarded by industry insiders as the prelude to granting 3G licenses.

The tests will be sponsored jointly by the National Development and Reform Commission and the Ministry of Information Industry. They are both key departments supervising the issuance of 3G licenses.

Recent reports suggest that China would issue 3G mobile licenses in the second half of this year, or probably in early 2006.