Asia Express - Mobile Communications
3G Development in China March 16-22
March 20, 2009
- China Telecom has begun trial tests for its CDMA (Code Division Multiple Access) services in Shanghai on March 16, the China Daily reported, adding that the company plans for the pan-China rollouts in April 2009. With its 3G network coverage currently reaching Shanghai's outer ring, Shanghai Telecom - a subsidiary of China Telecom in Shanghai - is set to deploy 2,000 3G base stations by year-end 2009. Furthermore, Shanghai Telecom stated that it will invest six billion RMB (US$878.9 million; US$1 = 6.83 RMB) into various projects in 2009, including the 2010 Expo, 3G network expansion, and enterprise services, according to the same source.

Additionally, China Telecom announced on March 18 that it has teamed up with the Shandong municipal government, whereby China Telecom will earmark a total of 18.0 billion RMB (US$2.64 billion) into the 3G network deployment in the Shandong province, according to the China Business News reported on March 19. China Telecom has completed the construction of its basic network infrastructure in the said province, slated for the 3G rollout in May 2009.

On March 11, China Telecom signed a similar agreement with the Hunan government. Pursuant to the agreement, China Telecom is set to invest into the 3G network deployment in the Hunan province, with an aim to achieve full coverage by May 17, 2009. The investment was valued at around 20 billion RMB (US$2.93 billion), according to the same source.

- In the wake of its collaboration with the Shanghai municipal government to promote China's homegrown TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) technology, Datang Telecom has entered into a similar agreement with the Hainan government. Through the alliance, Datang will help the government in the TD-SCDMA network deployment in Hainan, the Xinhua News reported on March 13.

Meanwhile, estimated to cover an area of about 490,000 square meters, China Mobile's southern TD-SCDMA R&D center located in Guangzhou, Guangdong province of China, is set to begin operations in September 2009, according to another report by the Xinhua News. For the first-phase of construction, due to be completed soon, the company has invested approximately 1.5 billion RMB (US$219.7 million).

- China Mobile announced on March 19 that China's government will likely to rise the annual subsidies for mobile phone purchases from 8 billion (US$1.17 billion) to 12 billion RMB (US$1.76 billion), Reuters reported quoting chairman of China Mobile, Wang Jianzhou.