China to Issue New 3G Licenses

China has announced it will begin to issue licenses to companies for its 3G mobile network for over $40 billion in government contracts. The Chinese infrastructure will include C and WCDMA, and TD-SCDMA. It is more likely China will opt for extensive use of the TD-SCDMA standard as it was developed by China and therefore China would avoid paying royalties. The Chinese government has awarded 3G contracts mainly to domestic  companies such as Huawei Tech in the telecom industry (the same is true in other industries across China) even though other foreign companies are more reliable and qualified. Foreign companies including Nokia, Alcatel, and Sony are expected to place bids as the Chinese markets become more lucrative as they continue to experience explosive growth in mobile and cell phone use. More than 600 million people in China currently use a mobile phone, and more and more of these people are purchasing more advanced handsets that support advanced features and 3G. Reports also estimate there could be up to 500,000 iPhone’s in use in China now. The Chinese government estimates it will have about 150 million 3G subscribers by 2010.

In other related news, India has announced it will postpone 3G spectrum auctions to January 30, 2009 as companies requested more time to review their options. The auction is for the 2.1GHz HSPA 3G and 2G standard. The Indian mobile market is growing quickly by adding more than 9 million subscribers last month alone. India is expected to have more than 1.7 billion mobile users by 2012, positioning India as the world’s third largest market of cell phone users in terms of subscribers.

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Hercules holds a B.Comm Finance from Ryerson University in Toronto, Canada. He is a Chartered Financial Analyst (CFA) level 3 candidate. He was previously a contributor at FiLife, a finance website owned by Dow Jones and IAC. Write to [email protected]
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  • Twisted_Sifter

    150 Million 3G users in China by 2010? 1.7 billion users by 2012 in India?
    As a Canadian, I’m feeling a little insignificant (as an entire market at least!).

    Thanks for posting, I linked to this on my site.

  • business2press

    lol, the market is a whole lot bigger than us in Canada!

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