Call to Issue 3-generation Licences by Early Next Year

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Last updated at: (Beijing Time) Tuesday, March 11, 2003

Call to Issue 3-generation Licences by Early Next Year

Third-generation (3G) mobile communication licences should be issued by early next year to create a favourable environment for the development of the industry, said government and business officials.

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Third-generation (3G) mobile communication licences should be issued by early next year to create a favourable environment for the development of the industry, said government and business officials.

"The government should do that later this year or early 2004," said a senior expert from the State Radio Regulation Organization (SRRO) under the Ministry of Information Industry (MII).

He said most of technological problems had already been solved and the time was becoming ripe for the launch of the 3G system in China.

The SRRO expert, who did not give his name, made the remarks at an international multimedia messaging service (MMS) seminar held by the Communications World magazine in Beijing on Friday.

He pointed out that the government had been holding back the issuing of the 3G licences as it feared a lack of applications and sufficient investment, as well as feasible business models.

However, with the development of technology, the government should take the step of becoming a leader in the 3G industry.

"With the nod from the government, mobile operators can begin to invest next year and deploy networks. The market will therefore take shape by 2005," he said.

SRRO issued China's 3G frequency plan in October. Some analysts speculated that China might launch its 3G system soon, as many countries usually release licences six months after announcing their frequency plans.

The aurthorities are considering all three 3G standards, including the European-led wide band code division multiple access (WCDMA), the US-initiated CDMA 2000 and the Chinese-developed TD-SCDMA (time division synchronous CDMA).

Shi Jixing, president of Putian Eastern Communications Group Co Ltd, also believed that since many international equipment and handset makers are investing in 3G, Chinese enterprises have a golden opportunity to catch up, if China launches the system soon.

He complained that his company, Shenzhen-based ZTE Technology and Huawei are all developing 3G products related to WCDMA and CDMA 2000, but the uncertainty over the launch of 3G has posed risks to this development.

At the same time, the government should rely on domestic capital in the initial stage of 3G development, Shi added.

"Domestic capital should at least contribute 30 per cent of the initial investment and the undertaking will attract foreign investors when the system is mature one or two years later."

Then Chinese operators will have a big say in talks with international partners, backed by a large subscriber population and potential market.

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