China's 3G subscriber base will reach 270 million by 2011

July 18, 2006

Analysys International, a Internet based provider of business information about technology, media and telecom (TMT) industries in China, says China is most likely to issue 3G mobile telecommunication licenses in the second half of this year and China's 3G subscriber base will reach 270 million by 2011.

When China's 3G market initiates, China Telecom and China Netcom will adopt preferential policies including low-end terminals and low fees to attract users. Therefore, they will focus on low-end and mid-range users. While China Mobile and China Unicom will develop 3G subscribers on the 2G platforms, mid- and high-end users who have strong data service demand will be the focus targets.

Analysys International says China's 3G-subscriber base will develop in three stages:

2006-2007: With network coverage less than 80% and mainly covering big and medium cities, 3G subscribers will reach 25 million in this stage, accounting for 5% of total mobile telecommunication subscribers in China.

2008-2009: With the network coverage issue being solved, 3G subscribers will expand rapidly to 138 million in this stage, accounting for 25% of total mobile subscribers.

2009-2011: As 2G handsets are eliminated from the market and carriers bind voice service with 3G services, 2G mobile subscribers will be passively upgraded to 3G. 3G subscribers will reach 270 million in this stage, accounting for 38% of the total.