Gov't Estimates New Investment for 3G Phones

   Date:2006/12/31

China may need to invest 205 billion yuan (US$25.7 billion) to introduce three high-speed wireless standards for mobile phones.

The country would need to spend 100 billion yuan to build a network based on its locally developed third-generation standard, 75 billion yuan on another technology and 30 billion yuan to upgrade an existing service.

The government hasn't said when it will issue licenses for 3G networks, which allow faster music and movie downloads. Equipment makers such as Qualcomm Inc and Huawei Technologies Co are set to benefit when the licenses are granted, with operators expected to spend 80 billion yuan on networks in the first year.

The demand for voice communication in China is unprecedented in the world. In the first seven months of the year, Chinese telephone users made 91.5 million minutes of calls, a rise of 33 percent from a year earlier. China had 431.8 million mobile-phone users as of the end of July.

The nation plans to build a network based on home-grown time division synchronous code division multiple access, or TD-SCDMA, standard, with capacity for 50 million users. The association, formed in September 2000, is controlled by Ministry of Information Industry.

China Mobile Communications Corp, the nation's largest mobile operator, will need to invest 75 billion yuan for a network based on wideband code-division multiple access, or WCDMA. If China upgrades its code-division multiple access network, it will cost 30 billion yuan.

China's government may issue its first high-speed wireless license within six months, in order to be ready to provide the services by the 2008 Olympics, chief executive officer of China Netcom Group Corp (Hong Kong) Ltd said on August 24.

Related Reports
China 3G Industry Report, 2005

China 3G Market & Industry Chain Report, 2005

3G Terminal Development Report, 2004



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