What Will CDMA Bring to China

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Last updated at: (Beijing Time) Wednesday, September 04, 2002

What Will CDMA Bring to China

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From the trial operation on January 8 to its debut on market on April 8 this year, and from the mid June, CDMA users exceeding 1 million to mid August with the users to be over 2 million, all these changes have indicated that China Mobile CDMA products are entering into a sound development period.

CDMA is a short for Code Division Multiple Access, it is a "spread spectrum" technology, which means that it spreads the information contained in a particular signal of interest over a much greater bandwidth than the original signal.

When implemented in a cellular telephone system, CDMA technology offers numerous benefits to the cellular operators and their subscribers.

Since reform and opening up, China's mobile communication industry has witnessed rapid development, by July this year, China's mobile phone users have reached 180 million. With the living standard of the people enhanced, requirements for mobile phone become higher and higher.

Many of CDMA users buy such mobile phone because of its multi-function and new mode.

For a long time, due to technology gap and late accession to market, China's traditional enterprises only have 3 percent market share in GSM products, but with the development of CDMA, things will be changed.

Actually, China has already been engaged in the study of CDMA since "8.63" program. Some enterprises have produced CDMA products with our own intellectual property rights.

What is more important is that when CDMA is just on market initialing stage, most domestic and foreign companies adopt chips from Qualcomm Company, competition is mainly centered on design technology. This means that domestic and foreign companies are almost on the same starting line and so to develop CDMA is undoubtedly an opportune moment for the development of domestic telecom industry.

Many countries are treating the sustainable development of telecom industry as a matter of great importance, which has a lot to do with political and economic stability.

China must avail itself of the opportunity to cope with any problem that may happen in the future. Therefore, it is a wise and resourceful way for China to develop CDMA.

According to prediction, China Mobile users may reach 260 to 300 million by 2005. From a long-term point of view, CDMA will sooner or later become the primary technology of the world telecom operators. If China does not develop CDMA, it will suffer a great deal from foreign impact once telecom market is opened to the outside.

For the country's safety and in the long run, if we rely on GSM only, it is hard for us to maintain the national telecom sovereignty. In this sense, to develop CDMA should become our national strategy in order to make sure that China will have more room to maneuver in world telecom technology and equipment market.

In addition, the smooth transition of CDMA to the third generation system won't cost much, only part of accessories need to be altered software to be upgraded. With the investment in telecom equipment and facilities reaching billions-yuan each year, equipment upgrading is also faced with transition problem and so to develop CDMA is undoubtedly a decision of farsightedness.

By PD Online Staff Li Yan

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