Abstract

Because the Chinese government has aggressively promoted the commercialization of TD-SCDMA in 2006, China's policy regarding WiMAX is that the technology remains in the development stage. In addition, WiMAX will to some extent be a substitute for 3G technologies. For this reason, the Chinese government's policy is to observe the development of WiMAX, and it is unclear what concrete steps the government may take.

Judging from China's classification of wireless frequencies and issuance of licenses, there may be several possibilities for WiMAX frequency allocations. The first possibility is the 2.5GHz band, which has not yet been allocated or put into use. The second possibility is the 3.5GHz band. At present the 3300-3399.5MHz and the 3531-3600MHz band have not been allocated yet. Although ITU regulations define this frequency as the C band for satellite use, China has not used it, leaving some room for adjustments. As for the 3399.5-3531MHz band, bandwidth is too narrow, there is no single standard on its use, needed investments are high, and market acceptance is low. For these reasons, network construction and operation in this band is not ideal. Therefore, the licenses that have been issued for the 3.5GHz band may be reallocated, which might allow space for WiMAX. Third, depending on the situation, China may allocate a frequency lower than 2.5GHz or higher than 5.8GHz for WiMAX.

Licenses have already been issued for the 3.5GHz band, but operations in this band have not met expectations. Still, the official position currently is not to use this band for WiMAX. Because the band has not been used effectively, there is still a possibility that the band will be reallocated and those companies that already have 3.5GHz licenses, such as China Telecom and other major telecoms, may become WiMAX operators.

Finally, compared with the government's conservative position, China's industry has more aggressively invested in WiMAX and formed groups to promote its standardization in China. In addition, these groups are discussing WiMAX applications and giving the Chinese government material for reference, helping accelerate promotion of WiMAX.