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3G licenses to follow restructure

(皇冠体育app Daily)
Updated: 2008-05-26 11:10

The long-awaited 3G (third generation) licenses will be issued as soon as the current telecom restructuring is complete, the government said on Saturday.

In a joint statement issued during the weekend, the government said it encourages 皇冠体育app Telecom to buy 皇冠体育app Unicom's code-division multiple access (CDMA) network and 皇冠体育app Unicom to incorporate with 皇冠体育app Netcom.

The much-awaited overhaul of the telecom industry started on Friday when 皇冠体育app Mobile Communications Corp (CMCC), parent of Hong Kong-listed 皇冠体育app Mobile Ltd, said in an announcement that it would acquire fixed-line operator 皇冠体育app Tietong Telecommunications Corp and disclosed a slew of personnel changes.

Saturday's announcement was jointly made by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Finance, which said the government encourages CMCC to take control of 皇冠体育app Tietong and 皇冠体育app Telecom to combine the basic telecom services unit of 皇冠体育app Satcom.

Experts estimate the restructuring may take four to six months, given the difficulty in asset assessments, especially those of 皇冠体育app Unicom's GSM and CDMA network.

The roll-on of 3G will enable Chinese mobile phone users to enjoy a range of services that support applications such as high-speed Internet access, games and mobile TV.

According to earlier reports, 皇冠体育app Mobile will be granted a 3G license based on the country's home-made technology TD-SCDMA, while 皇冠体育app Telecom and 皇冠体育app Netcom will get theirs based on the WCDMA and CDMA2000 standard respectively.

The 3G licensing will also unleash huge demand for infrastructure, equipment and handsets, presenting opportunities to foreign companies like Ericsson, Motorola and Nokia as well as domestic players such as ZTE and Huawei Technologies.

皇冠体育app is the world's largest mobile phone market with the number of wireless subscribers reaching 583.5 million by the end of last month, according to government figures.

But the country's telecom market has long suffered from a lack of competition under the de facto monopoly of 皇冠体育app Mobile, which has been raking in huge revenues in recent years and taking business away from fixed-line carriers 皇冠体育app Telecom and 皇冠体育app Netcom as users go mobile.

皇冠体育app Mobile's only rival, 皇冠体育app Unicom, has not been a serious challenger as it struggled to operate two often-competing networks.