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China Mobile plans vast 3G expansion

CHINA Mobile, the biggest mobile phone operator in the country, plans to invest 58.8 billion yuan (US$8.6 billion) to build 60,000 base stations this year for the expansion of its third generation (3G) mobile phone network, the company announced on Saturday.

Upon completion, the number of China Mobile's 3G network base stations will exceed 80,000, covering 70 percent of the cities under provincial level across the country.

The 3G high-speed networks can handle faster data downloads, allowing handset users to make video calls and watch TV programs.

Last Wednesday, China's telecommunications supervisor issued 3G mobile phone licenses to three domestic telecom companies.

China Mobile was awarded a license for TD-SCDMA, the domestically developed 3G standard. The other two main carriers, China Telecom and China Unicom, received licenses for the United States-developed CDMA2000 and Europe's WCDMA, respectively.

The Ministry of Industry and Information Technology predicted 280 billion yuan of direct investment in 3G networks within two years.

Analysts further predicted the development of 3G mobile services would lead to 2 trillion yuan in private-sector investment.

Apart from network construction, China Mobile also expressed a hope to sharpen its competitive edge in the 3G market by getting strong governmental support for the self-developed TD-SCDMA.


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