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Telecommunications firms receive 3G licenses
By Zhu Shenshen |
January 7, 2009, Wednesday
|
Online Edition
Online Edition
AFTER a long wait, the next generation of mobile phone services is now available in China, the world's biggest handset market.
The Ministry of Industry and Information Technology, the industry regulator, issued 3G licenses to China Mobile, China Unicom and China Telecom in Beijing yesterday. The move is expected to attract more than US$41 billion in direct investment.
Theoretically, people may apply for 3G services including film downloads and video calls for both home-grown and Western standards. But time is still needed to upgrade the network and launch the new services, the carriers said.
Detailed 3G fees were not available today.
The government approved 3G services, as expected, for three technologies: CDMA 2000 (code division multiple access) for China Telecom; WCDMA (wideband CDMA) for China Unicom and the domestically developed standard, TD-SCDMA (time division-synchronized CDMA) for China Mobile, according to the ministry.
Issuing the licenses will generate investment in network construction, handset development and new services. It is expected to stimulate the Chinese economy and contribute 6 to 7 percent of the country's gross domestic product by 2010, analysts said.
"The 3G licenses will lift the performance of the equipment makers due to the huge market size. The home-grown equipment makers will grab a bigger share of the market," said Fang Lu, analyst at Shenyin & Wanguo Securities.
Firms such as Ericsson, ZTE, Huawei and Nokia-Siemens will also benefit, according to Sandy Shen, analyst at Gartner Inc.
Mobile Internet services, including video and program downloads, will become popular, according to service provider executives such as Kongzhong's CEO Wang Leilei and 3G.cn's CEO Deng Yuqiang.
Chinese carriers are expected to spend 280 billion yuan (US$41.2 billion) on 3G networks and services in the next two years. Investment in 3G and other telecommunications services will reach 320 billion annually in a few years.
China's State Council approved the issuance of the licenses for third-generation mobile phone services at the end of last month.
The Ministry of Industry and Information Technology, the industry regulator, issued 3G licenses to China Mobile, China Unicom and China Telecom in Beijing yesterday. The move is expected to attract more than US$41 billion in direct investment.
Theoretically, people may apply for 3G services including film downloads and video calls for both home-grown and Western standards. But time is still needed to upgrade the network and launch the new services, the carriers said.
Detailed 3G fees were not available today.
The government approved 3G services, as expected, for three technologies: CDMA 2000 (code division multiple access) for China Telecom; WCDMA (wideband CDMA) for China Unicom and the domestically developed standard, TD-SCDMA (time division-synchronized CDMA) for China Mobile, according to the ministry.
Issuing the licenses will generate investment in network construction, handset development and new services. It is expected to stimulate the Chinese economy and contribute 6 to 7 percent of the country's gross domestic product by 2010, analysts said.
"The 3G licenses will lift the performance of the equipment makers due to the huge market size. The home-grown equipment makers will grab a bigger share of the market," said Fang Lu, analyst at Shenyin & Wanguo Securities.
Firms such as Ericsson, ZTE, Huawei and Nokia-Siemens will also benefit, according to Sandy Shen, analyst at Gartner Inc.
Mobile Internet services, including video and program downloads, will become popular, according to service provider executives such as Kongzhong's CEO Wang Leilei and 3G.cn's CEO Deng Yuqiang.
Chinese carriers are expected to spend 280 billion yuan (US$41.2 billion) on 3G networks and services in the next two years. Investment in 3G and other telecommunications services will reach 320 billion annually in a few years.
China's State Council approved the issuance of the licenses for third-generation mobile phone services at the end of last month.
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