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China removes barrier to 3G phones

Stephen Shankland CNET News

Published: 02 Jan 2009 10:18 GMT

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China's state council said it has approved licences for higher-speed 3G mobile networks, a move expected to help bring higher-end services to phone users in the country.

Under a telecommunications reorganisation plan whose creation delayed issuance of the licences, China Mobile is set to receive approval for a network using TD-SCDMA technology, a standard backed by Beijing, according to a Reuters report on Wednesday. China Unicom would be awarded a WCDMA licence and China Telecom a CDMA 2000 licence, according to the report.

WCDMA and CDMA 2000 standards are mature and globally accepted but come with royalties the Chinese government has sought to avoid.

"China Unicom and China Telecom will see a positive reaction in terms of share price reaction," Reuters quoted Tang Mingjun, a telecom analyst with Shenyin Wanguo Securities in Shanghai, as saying.

The Chinese Ministry of Industry of Information, which expects Chinese telecommunications companies to spend about $41bn (£28bn) on the next-generation phone equipment, has said the licences are due to be issued by early 2009, according to the report.

Credit: China lifts roadblock for 3G phones from CNET News

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