China issues 3G mobile phone licenses

January 7, 2009 at 16:36 Leave a comment

China assigned third-generation mobile phone licenses Wednesday to three carriers in a long-awaited step that is expected to prompt $41 billion in spending on new equipment.

Licenses were granted to China Mobile Ltd., China Unicom Ltd. and China Telecom Corp., the Ministry of Indutry and Information Technology said. Third-generation, or 3G, technology supports Web surfing, wireless video and other services and the start of service is expected to spur new revenue growth.

The awarding of licenses was delayed while China’s government developed its own technology to compete with two global 3G standards.

The Chinese-developed standard, TD-SCDMA, was assigned to China Mobile, the world’s biggest phone carrier by subscribers. That appeared to be an effort to make sure the new system has the financial and technical backing to succeed.

The two global standards, WCDMA and CDMA-2000, were assigned to China Unicom and China Telecom, respectively.

According to AIKresearch’s databse, China has 650 million mobile phone accounts, and Chinese carriers are expected to spend 280 billion yuan ($41 billion) on new equipment.

Such sales will be important to global suppliers Motorola Inc., Alcatel-Lucent SA, Nokia-Siemens Networks and Ericsson AB as demand elsewhere slumps. But they face competition from fledgling Chinese producers.

Wireless Industry News

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Entry filed under: 3G, Alcatel-Lucent, CDMA, China, China Mobile, China Telecom, China Unicom, Ericsson, Mobile, Motorola, Nokia Siemens Networks, Telecom, Wireless. Tags: , , , , , , , , , , , , .

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