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March 4, 2011

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Investment in 4G to double to US$100m

CHINA will see investment in fourth-generation, or 4G, mobile communications to double to US$100 million this year as companies tap technological development and the country's huge mobile user, a United States-based research firm said yesterday.

But the investment in 3G and 2G mobile networks in the country will decline gradually in the next three years, according to a report released by research firm iSuppli. Investment in 3G will account for 55 percent the total investment in telecommunciations in 2014, a drop from 67 percent this year, according to iSuppli.

In 2011, US$100 million worth of investment will go into the 4G technology - LTE (long-term evolution) - in China.

The figure will rise to US$300 million next year before finally hitting US$1.3 billion, according to iSuppli, without saying when it will hit that figure.

China Mobile, the world's biggest mobile carrier, said previously it would test LTE in several major cities, including Shanghai and Beijing. In Shanghai's Xujiahui and People's Square, LTE networks have been built for the test, the Shanghai branch of China Mobile said.

Cooperating with Alcatel-Lucent, Ericsson, Motorola, Nokia-Siemens and Nortel, China Mobile has built 100 base stations nationwide, covering 100 million users, iSuppli said.

The other two telcos - China Telecom and China Unicom - will start LTE tests between 2012 and 2013, industry officials said.

There are more than 800 million mobile users in China now, the most in the world.

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