Wednesday, July 14, 2010

China Business Times: Meeting the 3G dream into reality according to



License to start re-issuing Accessibility

Until the last day of 2008, people speculate on the long-issuing 3G licenses are still no progress appears. But full of drama is to the 17 points that afternoon, the first by the Chinese Government Network announced the same day by Prime Minister Wen Jiabao chaired a State Council executive meeting held in Ministry of Industry and in accordance with the procedures agreed to start issuing 3G licenses news, followed by the Xinhua News Agency, the Central television and other media are published in the first time this news. Soon, the Department of Industry and Information Technology issued a public notice on its official Web site said the Ministry of Industry and Information Technology will be in accordance with the arrangements and requirements of the State Council, according to legal procedures and enterprise applications, sound good TD-SCDMA and WCDMA, CDMA2000 license issued three work.

Notice also that, TD-SCDMA is China's important sign of independent innovation. To actively improve and implement support policies and measures to accelerate the development of TD-SCDMA, to continue to support research and development, industrialization and application of the promotion, the promotion of mature industry chain, to achieve large-scale commercial.

So far, 3G licenses will no longer be allowed to start issuing any obstacles.

Domestic standard is still the focus of development TD

The State Council executive meeting that day said it would continue to support the independent standard TD-SCDMA industrialization and promotion of research and development. The meeting pointed out, TD-SCDMA as the third generation mobile communications international standards, science and technology innovation in China an important indicator, the state will continue to support research and development, industrialization and application promotion. Issuing licenses for third generation mobile communication stimulate domestic demand, optimize the structure of the telecommunications market competition, promoting TD-SCDMA industry chain mature, play an important role.

Notice of the Ministry of Industry also said, TD-SCDMA is China's important sign of independent innovation. To actively improve and implement support policies and measures to accelerate the development of TD-SCDMA, to continue to support research and development, industrialization and application of the promotion, the promotion of mature industry chain, to achieve large-scale commercial.

Earlier, China Mobile said it will actively support the TD to the Government for the development of policies, actively seek the support of government departments at all levels, a nationwide wireless network based on TD urban construction. China Mobile has chosen Shanghai and Guangdong as a pilot, was officially opened in paragraph 188, shaping 3G business brand. It is reported that has been building completed in 10 cities with TD network coverage area 95% of 2G network coverage, voice, over 95% connection rate, drop call rate fell to 3.6%. In network construction, China Mobile launched the TD second stage of construction is expected to achieve first half of 2009 will include the provincial capitals, cities with independent planning and other key cities, including a total of 38 cities of the TD network coverage.



Much-needed boost telecommunications market downturn

At present, mainland China's telecom market has been in a depressed state, whether carriers or telecommunications equipment suppliers, including mobile phone manufacturers have complained on various occasions, but many people in this industry have also expressed views of identity. May 2008, telecom restructuring plan after the ups and downs and finally emerged: China Unicom's two mobile networks, GSM and CDMA networks to achieve separation of the two, G Network and China Netcom, China Unicom merged into the new; the former China Unicom's C network spin off China Telecom, China Telecom invested 110 billion yuan from the acquisition; into China Mobile, China Railcom, a wholly owned subsidiary enterprises, will remain relatively independent.

The introduction of telecommunications reform program is clearly for the issuance of 3G licenses to prepare, according to prevailing opinion, China Mobile TD-SCD-MA obtained licenses, China Unicom and China Telecom was granted a license WCDMA CDMA2000 license, all this will There is no suspense, the only problem is the licensing of the time.

WCDMA, CDMA2000 and TD-SCDMA is considered the world's three mainstream 3G technology standard, currently the three major standards have become the Mainland of China communication industry standards.

Li Yizhong, Minister of Industry and recently made it clear that the next two years to complete 3G investment in China is expected to be 280 billion yuan, while investment is expected next year will reach about 150 billion yuan.

Operators have announced on their future investment plans in 3G, of which China Mobile TD-SCDMA will invest 30 billion yuan; China Unicom will invest 100 billion yuan in WCDMA; China Telecom will invest 80 billion yuan in CDMA2000.

December 22, 2008, China Telecom announced that 189 numbers across the country to distribute telephone numbers, China Telecom has launched the first action to seize the 3G market, had repeatedly said that China Telecom, CDMA, after licensing the fastest in a smooth transition to CD -MA2000. China Unicom also speed up the layout of the WCD-MA, China Unicom official said, to be officially licensed, 3G, China Unicom is likely within two to three months in full swing standard WCDMA 3G networks.

3G license by the State Council issued for the news program, many investment bank analysts are quite optimistic about this.

SW analysts said, 3G license issuance, will move up the performance of telecom equipment vendors fundamentals, telecommunications equipment vendor performance in 2009 will increase. After issuing 3G licenses for all operators in action, 2008, 2009, the three operators of domestic capital expenditure reached 261.9 billion yuan, respectively, 310.4 billion yuan, respectively, year on year growth rate of 16%, 24%. With the commencement of 3G network construction, the share of domestic equipment manufacturers will continue to raise the maximum Aspect.

Golden State Securities report said the investment process, see, 3G investment showed a trend from high to low estimated ,2009-2011 3G base stations and core network equipment, network point scale of investment is expected to snow were 34.2 billion, 266 billion and 278 million, three-year total to 88.6 billion yuan. 3G launch, ZTE and Huawei will be the biggest beneficiary of 3G communication systems are.

Of course, there are analysts expressed cautious optimism. China Merchants Securities said in a report, 3G profitable difficult, but full of hope. The report noted that they expected the three major 3G operators will run in the third year to break even, the first five years to achieve large profits. China Unicom's killer for WCDMA in the near future is difficult to obtain high profits, competition for 3G in China is a strategic war. Conservative prediction model, although the Chinese operators and yellow may be better than many, but profitability is still difficult.

International Exchange Bank also made a report reminds that, based on the global 3G operators, the overall operating performance is not satisfactory, the prospects for China's 3G to be held long term and rational expectations, to avoid blindly optimistic.







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