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China to award 3G licences this year

July 21, 2003 - source: BWCS

The Chinese government is to issue licences for 3G services before the end of the year, according to a report in the China Business Post. However, this will be too soon for China’s homegrown standard TD-SCDMA to be adopted, which is not expected to be ready for deployment for another 4 or 5 years, a telecom analyst at China Minzu Securities said.

The TD-SCDMA standard is being developed by China’s Datang Mobile Communications Equipment Co and Siemens AG to compete with WCDMA and CDMA2000. If 3G licences are issued this year, Datang’s COO expects TD-SCDMA to take a 25 percent share of the Chinese telecoms market by 2006, which would bring the company’s total R&D investment in the standard to Yuan1.1 billion.

According to the report, TD-SCDMA terminal equipment will not be developed until the middle of next year and a test platform for commercial trials has yet to be established. Although mobile operators have not yet said which 3G standard they will adopt, China Mobile is expected to choose WCDMA to upgrade its GSM networks, while rival China Unicom, whose networks are based on CDMA1X, is likely to opt for CDMA2000.

With over 200 million subscribers, China is the world’s largest mobile market. Analysts Merrill Lynch expect the subscriber base to grow to 350 million, more than a third of the population, within five years.

 


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