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October 29, 2009

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Spending on 3G propels boom in IT

CHINA has invested 96.1 billion yuan (US$14.13 billion) so far this year to build up its 3G construction network, which has in turn given a big boost to the telecommunications and computer sectors, the industry regulator said yesterday.

In the third quarter of this year, the three Chinese telecom carriers - China Mobile, China Unicom and China Telecom - invested 19.1 billion yuan on the 3G mobile networks. By the end of this year, each of them will have 3G networks in more than 300 major cities nationwide, the Ministry of Industry and Information Technology said on its Website.

"The 3G investment has boosted the development of the whole industry, especially laptop and chip sectors, and fueled the country's economy during the global financial crisis," the ministry in a statement.

In the first eight months of this year, the number of mobile communications base stations soared 147.4 percent year on year. During the same period, the number of laptops grew 32.4 percent annually, against a rise of 17.7 percent for PC output, according to the ministry.

Through the 3G networks, laptop users can access mobile broadband services at anytime.

The latest Windows 7 supports network access of Chinese carriers, according to Microsoft Corp.

In January, China issued 3G licenses to the three telcos. The 3G technology allows cell phone users to access high-speed data services.

China has invested 650 million yuan into a fund to support the domestic 3G TD-SCDMA (time division-synchronous code division multiple access) standard, which China Mobile has adopted. The telco forecast a tripling of TD-SCDMA users to 3 million by the end of next year, said Lu Xiangdong, China Mobile's vice president.

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