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China to formulate 3G policy this year
www.chinanews.cn 2005-02-01 16:16:46
Chinanews, Beijing, Jan. 31(By Liu Yuying) - After the Chinese government
took a first stand on the 3G license issue at the beginning of January,
the future of China's 3G market is a topic of hot debate, further
complicating the already complicated 3G license program.
There are undoubtedly many complicating factors involved in this 3G
license issue. However, according to recent public statements by the
government, China is expected to issue 3G licenses this year.
Firstly, China will basically finish in this year the industrialization
(from system equipment to the terminals) of the international standard 3G
TD-SCDMA proposed by China.
Carriers will be exposed to much less risk under this standard system.
The Director of the TD-SCDMA Industry Alliance has expressed many times
his confidence in finishing industrialization in the middle of this year.
The completion of the TD-SCDMA industrialization will clear one of the
obstacles in issuing 3G licenses.
Secondly, the government hopes that China's 3G will be mature and ready
for commercial use by the 2008 Beijing Olympic Games. The Olympic Games,
increasingly commercialized, will bring unlimited business opportunity
for many industries, including the 3G business.
According to an inside source, after carriers get their 3G licenses, they
have to build up the network and test the network for 3G. The time it
takes from license issuance to the release of phone numbers will vary
among providers. For instance, it may only take China Unicom three months
to complete all the steps while it would take China Telecom and China
Netcom six to nine months although they usually can release 3G numbers to
users in about six months time. At present, however, China's network
coverage, stability, quality, user volume, service varieties and brand
image are not yet up to speed, and there are still much to be done to
improve network services before mass commercial use. Some have said that
China would announce restructuring plans of its telecom carriers in the
second quarter of this year and issue 3G licenses in the fourth quarter.
But other industry sources are more conservative. According to them, the
work report by the Ministry of Information Industry just indicated that
they would put forward 3G policy proposals some time this year. The
timing of 3G license issuance is by no means fixed.
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