Telecommunication News
- Telecom industry needs overhaul before 3G
Date: 3-Jan-2007 Sources: (Shenzhen Daily)
THE telecommunications industry needs to be reorganized ahead of the issue of third generation (3G) mobile licenses, the Shanghai Securities News reported, citing government researchers.
The newspaper quoted Zhao Jie, a senior researcher with the Party training school, as saying that clashing interests for telecommunications companies need to be addressed.
China Telecom and China Netcom, the country's two leading fix-line operators, expect to obtain mobile licenses for 3G, putting them in competition with the incumbent mobile operators, China Mobile and China Unicom.
China Telecom and China Netcom currently use fixed-line technology to provide customers with limited-range mobile services.
'The number of licenses and the terms of operating 3G businesses will depend on the telecom industry reshuffle,' Zhao said.
While the report did not give details of proposals for a reorganization, other analysts have suggested that operators should not be allowed to build out redundant networks. The objective is to reduce the cost of building out network infrastructure and offer some form of incentives for operators to move ahead with new technology.
One proposal has been a breakup of China Unicom's existing GSM and CDMA networks with one of the fixed-line operators acquiring one of the networks.
The Shanghai Securities News also quoted Kan Kaili, a senior researcher with Beijing University of Posts and Telecommunications, as saying it is not yet the right time to deploy 3G as heavy development costs have no prospect of being paid off yet, the report said.
China is currently in the process of evaluating competing 3G standards -- Europe-backed WCDMA, Qualcomm-developed CDMA2000 and the homegrown TD-SCDMA platform, which is widely perceived as the least mature of the three technologies.
The government has repeatedly postponed the issuance of 3G licenses in order to give its homegrown TD-SCDMA more time to mature.
Recently the government has been talking up the prospect of issuing 3G licenses in 2006.
Information Industry Minister Wang Xudong said the government will complete the policy framework for 3G technology, including, tariffs, regulations and spectrum allocation, in 2006.
He did not say when 3G services will be available.
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