Keen rivalry likely with new 4G permits
Print Edition
CHINA Telecom and China Unicom received new 4G FDD-LTE licences from the industry regulator yesterday, setting the stage for intense market competition in 4G and 4G phone sales in the world’s biggest phone market.
The two telcos can now start pilot commercial 4G services based on the FDD-LTE technology in 16 cities including Shanghai. Beijing, however, was not on the list, according to the Ministry of Industry and Information Technology.
“It’s definitely good news to China Unicom and China Telecom to help them catch up with market leader China Mobile,” Xu Hao, analyst at Beijing-based research firm Analysys International.
“It brings more competition to the market and choices to consumers,” Xu added.
The FDD-LTE is more commercially mature because it has been used in other countries like the US, South Korea and Britain for several years.
In December, the ministry issued the China-developed 4G TD-LTE licenses to all three carriers including China Mobile, the country’s No. 1 telco.
China Mobile focuses on TD-LTE. China Unicom, the No. 2 carrier, and China Telecom, the No. 3 telco, can offer both TD-LTE and FDD-LTE 4G services.
China Mobile is the main beneficiary of the TD-LTE technology as it dominated TD-LTE research and development in recent years. By the end of May 2014, China Mobile’s 4G users totaled 8.11 million.
But due to lack of core technology and infrastructure related to TD-LTE, China Telecom and China Unicom looked forward to starting FDD-LTE.
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