China Approves 3G Licenses - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
News
12/31/2008
02:35 PM
50%
50%

China Approves 3G Licenses

The rollout could lead to big business for the likes of Alcatel-Lucent and Motorola, but questions remain about which companies will get 3G contracts.

China agreed to start issuing licenses for its 3G mobile data network, but questions remain about which companies will get a slice of the estimated $41 billion in government contracts over the next two years.

For network infrastructure providers like Alcatel-Lucent, Ericsson, Motorola, and Nokia-Siemens, the Chinese market could be a bright spot in an otherwise dreary market. But the Chinese government may require the state-owned carriers to utilize domestic equipment manufacturers for the bulk of the 3G rollout. Companies like Huawei Technologies, Datang Telecom, and ZTE are not as large or experienced as the foreign competitors, but they have received the largest 3G contracts to date.

The 3G technology may be a factor as well, as China's network will include TD-SCDMA, WCDMA, and CDMA. China likely will favor the homegrown TD-SCDMA standard partly to avoid paying costly royalties, and the large China Mobile will utilize that standard. Companies like Ericsson and Motorola have embraced the standard somewhat reluctantly, but some technology companies say the government should open the market to foster competition and innovation.

The 3G rollout also is potentially good news for handset manufacturers, as the Chinese market already has more than 600 million wireless subscribers. The majority of subscribers use entry-level phones that are only capable of making calls and sending text messages, but customers increasingly are upgrading to sophisticated handsets that can surf the Internet, play multimedia, and receive e-mail. For example, In-Stat reports there are already more than 400,000 unlocked iPhones in the country, as well as countless iPhone clones.

China estimates it could have about 150 million 3G subscribers by 2010. The majority of these subscribers will be buying new handsets, which could boost cell phone manufacturers during a time when other regions are holding off on upgrading their phones because of the global economic slowdown.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
Commentary
Enterprise Guide to Multi-Cloud Adoption
Cathleen Gagne, Managing Editor, InformationWeek,  9/27/2019
Commentary
5 Ways CIOs Can Better Compete to Recruit Top Tech Talent
Guest Commentary, Guest Commentary,  10/2/2019
White Papers
Register for InformationWeek Newsletters
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Video
Current Issue
Data Science and AI in the Fast Lane
This IT Trend Report will help you gain insight into how quickly and dramatically data science is influencing how enterprises are managed and where they will derive business success. Read the report today!
Slideshows
Flash Poll