Massive 3G investment for China in 2007

January 11, 2007

China will enter a real start of 3G construction in 2007, but it is of little likelihood to see massive investment in 3G network in the year, in view of the technology maturity and the policy environment, pointed out a recent report by China Galaxy Securities.

In addition, the brokerage firm said that the year 2008 will witness large-scale construction of 3G and its upgrade networks.

For telecom equipments makers, 2007 will be a quite promising year, because it will go to a construction peak in 2008, the report said.

China's fixed-assets investments in the telecom sector in 2006 and 2007 are respectively CNY 21.5 billion (US$1 = CNY 7.8) and CNY 23.5 billion, and with a growth of 5.7% and 9.3%.

In 2008, the investment is estimated to grow 10% to CNY 25.85 billion, in which CNY 10.85 billion will be related to 3G, accounting for a 42% stake, and the country plans to invest about CNY 20 billion in 3G project in 2007, according to the report.