China 3G hit by further delays

80 million want to buy 3G handsets, but government says no

Simon Burns in Taipei

Mobile handset makers hoping to sell 3G phones to China's 455 million mobile phone users may be forced to wait until 2008, according to local media reports.

One recent survey showed that almost 80 million mobile users in China are ready to switch to 3G, but that the government is preventing 3G network operators from rolling out services.

Advertisement

Local and foreign firms including Nokia, Motorola and Sony-Ericsson could be affected by changes to China's 3G schedule. 

Nokia, the world's largest mobile phone maker, holds more than 30 per cent of the Chinese handset market, and generates huge revenues from network infrastructure sales

China's 3G introduction has been delayed for more than a year while the government waits for the country's home-grown TD-SCDMA 3G standard to be finalised. 

Although carriers have set up test networks in several urban areas, and claim that they are ready to offer full 3G services, they cannot move forward until the government gives them 3G licences.

While past delays have been caused by technical problems with the new TD-SCDMA standard, observers believe this may no longer be the main problem holding up 3G in China.

"We believe that the delay is likely due to politics, not technology," wrote W R Hambrecht analysts in a recent report to clients. 

Many had speculated that the number of carriers will increase to four, with China Telecom and China Netcom joining incumbent operators China Mobile and China Unicom

"However, we believe this is a complex political issue where carriers are lobbying for their own respective interest," explained the analysts.

"Senior management members of the carriers are considered highly ranked government officials and it is therefore a very delicate issue for the Chinese government."

  • Have your say
  • Send to a friend
  • Print
  • Digg
  • Reddit
  • Share

Tags:

Do you agree?

Further reading

China had more than 431 million mobile phone users by the end of July

Chinese mobile users hit 426m

Growth slowing as market waits for 3G

US raps China over technology interference

Hands off 3G, digital TV, RFID, Wi-Fi and DVDs, say US trade officials

China gears up for mobile TV bonanza

Government pushing for widespread services to be ready for Olympic Games

Olympics drive Chinese broadband development

Every house in Beijing promised broadband by 2008

Related whitepapers

Related jobs

Most watched

iPhone

Video Review: iPhone 3GS

We put Apple's latest iPhone through its paces

Xperia X1

Video Review: Sony Ericsson Xperia X1

First Looks Editor Ian Williams gets hands on with the Sony Ericsson Xperia X1

IT white papers

Search white papers

Top categories

Poll

Poll: Summer smartphones

Poll: Summer smartphones

Which smartphone will you be taking to the beach this summer?

View poll results

Advertisement

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Spotlight

a padlock

Microsoft to plug security holes

Microsoft has given advance warning of a number of security...

Nokia handset

Top 10 articles, 10 July 09

No Nokia Android phone, ActiveX attacks and Google enters into...

Can Google beat Microsoft at its own game?

Google's announcement this week that it plans to step into...

iPhone

Video Review: iPhone 3GS

We put Apple's latest iPhone through its paces

Primary Navigation