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China Unicom gets nod to develop 3G network in Macao

By Li Weitao (China Daily)
Updated: 2006-08-18 08:57

The firm was awarded a licence last May to offer roaming services for visitors to Macao from the mainland and other parts of the world using CDMA services.

Previously there was no CDMA service provider, thus CDMA users from outside Macao were unable to operate their mobile phones there. Local residents were served by mobile services based on the GSM (global system for mobile communications) standard.

CDMA is popular in South Korea, Japan, North America and the Chinese mainland.

Analysts do not expect the mobile phone service in Macao, which has a population of more than 440,000, to generate large revenue for Unicom.

As mobile phone use is high in Macao, it will be hard to convince GSM users to switch to CDMA services, said an analyst who wished to remain anonymous.

"Unicom's push into the Macao market is largely symbolic," the analyst said.

Unicom is betting on the 3G network in Macao to gain experience operating a commercial 3G business.

The central government has yet to decide when to license operators, including Unicom, to build 3G networks on the mainland. Many industry observers now expect the 3G licensing to occur in the first half of next year at the earliest.

Unicom has built some trial 3G networks in cities such as Shanghai. And the Macao experience could help Unicom gain the upper hand in the mainland's 3G market.