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Spending on 3G expected to fall in 2010
By Zhu Shenshen |
November 21, 2009, Saturday
|
Print Edition
Print Edition
SPENDING on Chinese mobile communications infrastructure is expected to peak this year and will decline in the following years, a United States-based research firm said yesterday.
This year, investment in wireless infrastructure equipment for the 3G networks by China's three mobile operators will surge by 27.7 percent to US$6.3 billion, marking a peak for expenditure, according to iSuppli Corp.
After expanding aggressively nationwide, the telcos will cut spending. In 2010, spending on wireless infrastructure will drop slightly by 2.4 percent to US$6.2 billion, iSuppli said.
"Spending will continue to decline in the following years as the carriers move beyond the initial deployment stage of their 3G services," said Will Kong, an iSuppli's analyst.
China Mobile, the world's No. 1 mobile operator by subscribers, will cut capital spending next year compared with this year, said Chairman Wang Jianzhou, who didn't elaborate.
China Mobile's TD-SCDMA network covered just 38 cities before August. But it's expected to expand the service to 238 cities by the end of this year.
Next year, China Mobile will provide mobile TV services based on the 3G network, Wang said.
China Telecom's CDMA-based 3G services are progressing rapidly as its 3G network now covers 342 cities and is set to expand to 500 cities by the end of this year.
China Unicom, which launched the iPhone 3GS last month, has completed two phases of its WCDMA network coverage in 285 cities across the country.
This year, investment in wireless infrastructure equipment for the 3G networks by China's three mobile operators will surge by 27.7 percent to US$6.3 billion, marking a peak for expenditure, according to iSuppli Corp.
After expanding aggressively nationwide, the telcos will cut spending. In 2010, spending on wireless infrastructure will drop slightly by 2.4 percent to US$6.2 billion, iSuppli said.
"Spending will continue to decline in the following years as the carriers move beyond the initial deployment stage of their 3G services," said Will Kong, an iSuppli's analyst.
China Mobile, the world's No. 1 mobile operator by subscribers, will cut capital spending next year compared with this year, said Chairman Wang Jianzhou, who didn't elaborate.
China Mobile's TD-SCDMA network covered just 38 cities before August. But it's expected to expand the service to 238 cities by the end of this year.
Next year, China Mobile will provide mobile TV services based on the 3G network, Wang said.
China Telecom's CDMA-based 3G services are progressing rapidly as its 3G network now covers 342 cities and is set to expand to 500 cities by the end of this year.
China Unicom, which launched the iPhone 3GS last month, has completed two phases of its WCDMA network coverage in 285 cities across the country.
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