China delays issuing 3G licenses until early 2008

February 21, 2007

China's 3G licensing will be postponed to the first quarter of 2008 at the earliest, the Caijing magazine said in its latest issue, citing an unnamed source.

The magazine said China Mobile will lead another round of tests of a 3G network based on its homegrown TD-SCDMA technology in March this year.

The tests will last one year. During this trial period, the Chinese government will not consider any issue of 3G licenses.

The magazine said the purpose for this is to give adequate time for China to test the TD-SCDMA technology and to gain sufficient experience in operating a 3G network.

Earlier media reports said China Mobile Communications, the parent of China Mobile, is planning to invest over 15 bln yuan to build TD-SCDMA-based networks in 2007 and to roll out 3G mobile services before the end of October this year.