The Chinese government has yet to award licenses to operators to build 3G networks. But in recent months it has become increasingly likely that China Mobile, the world's largest mobile operator by subscribers, will choose TD-SCDMA to build its 3G networks.

China Mobile is already testing TD-SCDMA in Xiamen, East China's Fujian Province, while fixed-line carrier China Telecom is operating trial TD-SCDMA networks in Shanghai and Baoding. No 2 fixed-line telephone operator China Netcom is testing the technology in Qingdao and Beijing.

China Mobile is now expanding its trial networks to five more cities in a new round of testing. In January speculation was rife that China Mobile might inject 3 billion yuan into Datang Telecom.

An executive with a TD-SCDMA equipment vendor said all sellers had received invitations from China Mobile to bid for the supply of switches in the standard's new round of testing.

Vendors are required to submit "preliminary bids" today and formal bidding may start next week.

China Mobile will also soon invite bids from vendors to supply TD-SCDMA base stations, which usually account for 80 percent of spending on network build-outs.

The new trial networks could cost 20 to 30 billion yuan, the executive said, asking not to be named. Datang Mobile, a subsidiary of Datang Telecom, is one of the suppliers of TD-SCDMA equipment to China Mobile.

The SASAC's cash injection to Datang Telecom is expected to help Datang Mobile increase its strength in developing TD-SCDMA equipment and mobile phones.

(China Daily 02/28/2007 page13)

1

2

(For more biz stories, please visit Industry Updates)