Friday, October 19, 2007

Still no timeline for 3G

One of China's prestigious ventures, its own standard for 3G TD-SCDMA, is still getting nowhere in China, nor are the other 3G standards. The Financial Times quotes Lou Qinjian, a vice-minister of the information industry.
The 3G-systems are already for years on the agenda of many foreign and domestic producers of telecom equipment, who hoped that this country of almost half a billion mobile phone users would open up for 3G on time to get a full roll-out before the Beijing Olympics in 2008. That now becomes increasingly doubtful.
“To actually issue licences, we need to consider the business model and all kinds of management issues – and we are still in the process of researching these,” Mr Lou said.

Apart from the maturity of China's TD-SCDMA also the major telecom companies involved, like China Mobile do not seem to eager to move ahead. The 3G will destroy its current business model where users pay for voice communication and it will not be replaced by other sources of income. So, investing to destroy a lucrative business model has no priority for them.

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