China Mobile to invest 15 billion yuan to build TD-SCDMA networks

February 12, 2007

China Mobile Communications, the parent of China Mobile, plans to invest over 15 bln yuan to build TD-SCDMA networks in 2007 and roll out 3G mobile services before the end of October, the Economic Observer reported.

The newspaper cited a company plan as saying that China Mobile will complete the construction of home-grown TD-SCDMA networks before the end of October.

According to the plan, the country's largest mobile network operator will finish the construction of 8,602 TD-SCDMA base stations in Beijing, Shanghai, Tianjin, Shenyang, Qinhuangdao, Guangzhou, Shenzhen and Xiamen before October this year.

It will also complete the procurement of core TD-SCDMA equipment before end-May and terminals will be put into place before end-October.

China is widely believed to be waiting for its homegrown TD-SCDMA technology to mature before opening up the 3G market to all 3G platforms and the government earlier reiterated that it will issue 3G licenses in time for operations to be launched by the 2008 Olympics in Beijing.

The paper cited analysts as saying that China Mobile's large-scale commercial deployment for TD-SCDMA indicates that the government has "indirectly" issued the TD-SCDMA license.

Li Yuan, an analyst with China International Capital Corp, said China Mobile is likely to mainly operate the TD-SCDMA networks after the roll out of 3G services.

The plan states that China Mobile will take over and combine the partially-completed TD-SCMDA networks of China Telecom in Shanghai and China Netcom in Beijing, though no further details on this were given, the report said.

Citing separate sources, the newspaper said China Telecom and China Netcom are expected to spend one bln yuan each on expanding their own TD-SCDMA networks in Baoding and Qingdao respectively.

TD-SCDMA, which China's Datang Mobile Communications Equipment is developing with Siemens, is competing with foreign-developed standards WCDMA and CDMA 2000.