China Rising to the Mobile Challenge with UMTS/WCDMA

date: July 7, 2002

China stands to benefit from increased economic growth and overseas trade by confirming its choice of UMTS/WCDMA (Wideband CDMA) technology to develop 3G networks.

Third-generation mobile deployment offers China exciting opportunities in overseas trade and local employment to meet global market demand for terminals, network equipment and services. 3G industry body The UMTS Forum has stated that the economies of scale obtained by deploying UMTS will give China the chance to bridge its digital divide with other countries and consolidate its position as a leading mobile nation over the next decade.

Addressing an invited audience of government officials, operators and manufacturers at a seminar in Beijing organised by The UMTS Forum and supported by key mobile manufacturers, UMTS Forum Chairman Dr Bernd Eylert has urged the Chinese administration to act decisively in confirming its plans for deploying UMTS by evolving its existing GSM networks:

"In less than five years, the Chinese mobile market has grown from less than 10 million to more than 170 million subscribers. With this rapid growth set to reach more than 400 million users during 2005, China must act now to ensure that its technology decisions do not isolate it from the global market opportunity for 3G that will exceed one trillion dollars in operator-retained revenues alone over the next ten years.

"With a timely selection of UMTS/WCDMA technology, China has the opportunity to take its place in the world market as a leading proponent of next-generation networks and services", notes Eylert.

China: Why UMTS?

By aligning with more than 110 GSM operators who have already selected UMTS/WCDMA technology to launch third- generation systems, Chinese operators can leverage all the benefits of the world's most popular choice for 3G deployments - including ease of migration from GSM for incumbents, a greater choice of feature-rich terminals and economies of scale for new and existing players alike. The region's local economy will also benefit, with fresh employment opportunities in manufacturing industry plus the chance to export valuable IPR's in the form of services and applications from China's software developer community.

Using WCDMA technology, UMTS offers the most cost-efficient migration path for operators of second-generation GSM networks via GPRS to full 3G capability, simplifying re-use of existing network infrastructure while giving operators access to fresh radio spectrum to support increasing demand for media-rich new services over the next decade and beyond.

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