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Another strong signal sent for 3G rollout

By Chen Zhiming (China Daily)
Updated: 2007-03-21 08:52

The Ministry of Information Industry yesterday released a message that was taken as a positive sign for third generation (3G) telecommunications by many analysts.

"We will take advantage of the development of third generation mobile telecommunications to improve the structure of telecommunications industry," Lou Qinjian, vice-minister of China's telecommunications watchdog.

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He made the statement yesterday inBeijingat 2007 Telecommunications Industry Development and Policy Briefing.

Analysts believe that this is another message from the regulator that China was set to roll out its 3G development policy very soon as well as a new round of reshuffles within the industry.

Lou's remarks echoed Minister Wang Xudong's statement in December at the ITU Telecom World 2006 inHong Kongthat "3G could happen very soon".

As a matter of fact, 3G in China has become more possible with the maturing of its homegrown TD-SCDMA (time division synchronous code division multiple access) technology, one of the three ITU recognized 3G technologies. The other two are European-based WCDMA (Wideband CDMA) and US Qualcomm-based CDMA 2000.

It was reported over the weekend that China Mobile, the country's largest mobile operator, is considering a bidding plan for contractors and suppliers for its 3G networks, worth 10 billion yuan ($1.3 billion).

According toShanghaiSecurities, China Mobile started distributing its bidding plan to eight possible contractors and suppliers home and abroad, including Datang Mobile, ZTE, Ericsson and Alcatel Shanghai Bell.

The Ministry of Information Industry yesterday also pledged to promote the convergence among networks of telecommunications, Internet and broadcasting and cable TV.

According to a regulation by the State Council in 1999, telecom operators and broadcasters are prohibited to cross each other's turf.

However, owing to the fast development of telecommunications, Internet and broadcast networks and the emergence of new technologies and services such as broadcasting via Internet and mobile phone networks, have largely blurred boundaries within the industry.

"We will come up with proposals and promote the convergence this year as it has become an increasing trend," Lou said.

"Also, we will actively promote the enactment of telecommunications law this year to standardize the market and enhance our supervision."