China, the world's
largest
mobile phone market, will begin rolling out 3G networks next month after
many years of delay.
China Mobile, the country's dominant mobile phone company, will run a
commercial test of 25,000 3G phones and data cards that use the
locally-developed TD-SCDMA technology.
The soft launch will cover eight major cities. The deployment requires
government permission, but China Mobile has not said whether it has received a
licence for a nationwide rollout.
China Mobile chairman Ping Wu said in a statement: "Today's announcement
demonstrates China Mobile's strong commitment to commercialise TD-SCDMA.
"It includes a host of measures to facilitate market acceptance of this
technology including attractively priced calling plans, six subsidised handsets
and USIM cards for consumers who purchase TD-SCDMA handsets through other
channels.
"There will be demonstration centres in eight cities, financial incentives
for resellers, publicity campaigns and after-sale customer support."
China's government has
backed
research into TD-SCDMA following complaints that basic technology royalties
from China's booming telecoms sector were all going to foreign companies.
Although 3G networks using
foreign-developed
technology, such as W-CDMA, have been possible in China for more than three
years, the Chinese government delayed 3G deployment while researchers
struggled
to perfect TD-SCDMA.
During the wait, even China Mobile executives have occasionally wavered in
their support for the troubled standard.
The government is expected to issue licences for 3G networks based on more
established technologies once TD-SCDMA has established a foothold in the market
by virtue of a period of exclusivity.
However, analysts warned of possible technical problems with the new
standard.
"There are many technical defects and problems to be solved during the
pre-commercial tests," Wang Yuquan, president of Frost & Sullivan China,
told the China Daily.
"I think China's TD-SCDMA still has at least one year to go before it becomes
a mature technology."
The TD-SCDMA Industry Alliance, which represents firms behind the standard,
has predicted that their technology's market share will grow to between 14 and
35 per cent of new handset sales by the end of 2008.
Official predictions that TD-SCDMA might also find a market outside China
have met a lukewarm reaction from industry observers.
"TD-SCDMA is likely to face an uphill battle outside mainland China," Hwai
Lin Khor, an analyst with ABI Research, said in January.
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