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Nokia Targets China for 3G Success

October 28, 2002 - source: BWCS

Finnish equipment supplier Nokia is expecting to see a big demand for 3G systems and handsets in China, regardless of how operators and consumers treat next generation services in other countries. The vendor has already invested around US$2.3 billion in developing its operations in China, and has recently opened new R&D facilities in Zhejiang Province. China is currently Nokia’s second largest market, and the Chinese 3G sector has been valued at US$100 billion within five years.

Nokia’s senior vice president, Juhanin Kuusi, has told Business Weekly: “3G development in China certainly will have its own roadmap different from Europe and Japan. In China, while mobile voice service is needed based on the large population, the need for mobile data service is rapidly increasing in urban areas.”

While the Chinese government has still to decide on which 3G standard to licence – wideband CDMA (WCDMA), cdma2000, the locally-developed TD-SCDMA, or a combination of these – Nokia is advocating an upgrade from GSM to WCDMA technology, which is favoured by European operators and is currently in use by NTT DoCoMo of Japan. The country’s dominant cellular operators, China Mobile and China Unicom, currently offer most of their services over GSM networks. Nokia’s Kuusi says: “WCDMA 3G is for both data and voice services with larger capacity, cost efficiency and better quality, which is right for China.”

 


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