Since a complete supply chain involving equipment makers, operators and information providers is taking shape in the market, the issuance of the licenses could open the door to 2 trillion yuan ($293 billion) in investments from the private sector, said Chen Jinqiao, Deputy Chief Engineer at the China Academy of Telecommunication Research under the MIIT. Domestic telecom equipment makers such as ZTE Corp. and Huawei Technologies Co. Ltd. would also benefit from big orders doled out by the operators, he said.
Simply irresistible
In the world's largest mobile market with more than 600 million subscribers, the appeal of 3G services is clearly irresistible. That is why China's telecom operators have spared no effort in grabbing a slice of the pie. All have pledged to increase spending on their networks to better cater to the needs of their customers.
So far, China Mobile has been leading the pack while the two smaller players have yet to upgrade or rebuild their networks to handle 3G services. China Mobile put its TD network into official use immediately after obtaining its 3G license. China Telecom has made known its plans to launch CDMA2000 services this May, while China Unicom has to wait until next year.
Meanwhile, China Mobile has announced plans to invest 58.8 billion yuan ($8.6 billion) to build 60,000 base stations this year as part of its network expansion. Upon completion, its TD base stations will top 80,000, covering 70 percent of the cities across the country.
Telecom industry analysts say each of the three players has advantages and disadvantages. The two 3G technologies that China Unicom and China Telecom will deploy are both widely used around the world and should be easier to set up and provide services for than TD, they said.
Last April, China Mobile launched commercial trials of its 3G services in eight cities, during which customer feedback exposed many problems with the TD network. But the company's strong point lies in its solid customer base. It provides services for almost three quarters of the country's mobile subscribers.
In an online survey conducted by Sina.com, 65 percent of nearly 158,000 respondents said they would like to try 3G services when they become available. But only 47 percent of those surveyed said they would choose China Mobile, compared with 31 percent and 22 percent who said they would prefer services offered by China Unicom and China Telecom, respectively.
It may be a few years before most mobile customers can accept and afford 3G services, Yang Peifang, a senior economist at the MIIT, said in a statement.
Chen Shuye, a 24-year-old English teacher at the Beijing Daxing District Caiyu Town No. 1 Central Primary School, told Beijing Review that she would not consider 3G services in the near future. Making calls and sending text messages were already enough for her, she said.
Guo Liwei, a 26-year-old agent at Chivast Education International Co. Ltd. in Beijing, said he would not use 3G services until they were less expensive. But he said he would buy the services from China Mobile since he has been a customer of the company for years. |