3G Situations In China

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3G situations in China : 

Kai Wei Helsinki University of Technology Telecommunications Software and Multimedia Laboratory kaiwei@cc.hut.fi 3G situations in China

Agenda : 

Agenda Current mobile market situation in China Attitude of government Attitude of old and new operators Attitude of vendors

Distribution of telecom services revenue : 

Distribution of telecom services revenue

Five Tele Operators : 

Five Tele Operators China Mobile GSM China Unicom GSM CDMA China Telcom, China Netcom Fixed network PHS (Personal Handyphone System) China Railcom Fixed network

Way to issue license : 

Way to issue license Auction plenty income to goverments heavy burden to operators public bidding manipulable, not choose winner only based on price offer, but also its capability and technical offer are taken into account left room for operators to build up network

Government Attitude on 3G : 

Government Attitude on 3G 3G technology is not mature changing standard existing problems no killer application China initialized 3G standard is not ready 3G field test is going on, will complete on Q4/2004

Strong Support TD-SCDMA : 

Strong Support TD-SCDMA Government officiers express support explicitly Allocate 155M frequency to TD-SCDMA vs. 120M to both WCDMA and CDMA2000 together Help to organize TD-SCDMA strategy alliance TD-SCDMA bound to each license

Attitude of operators on 3G : 

Attitude of operators on 3G CMCC ( China Mobile Communication Company) The biggest GSM operators in the world Have to face more competitors when 3G is deployed Invest heavily on 2.5G, not like to deploy 3G soon No killer application + lack of frequency in GSM + Prefer to WCDMA + TD-SCDMA

Attitude of operators on 3G : 

Attitude of operators on 3G Unicom ( China United Communication Company) Run both GSM and CDMA network Invest on 2.5G on CDMA network, not on GSM network Four Chanllenges Where can it get investment on 3G? Which standard should it choose for 3G? If favors of CDMA2000, how can it deal with its GSM network? EV-DO ? EV-DV CDMA2000 return from CDMA 2.5G network & various financing methods develop dual-mode mobile now: EV-DO future: depends

Attitude of operators on 3G : 

Attitude of operators on 3G China Telecom & China Netcom Fix network operators + Use PHS to conquer wireless market + Hope 3G license is issued asap + China Telecom prefers WCDMA

Attitude of operators on 3G : 

Attitude of operators on 3G China Railcom Small fix network operators No interesting on 3G market yet

Attitude of vendors on 3G : 

Attitude of vendors on 3G Local vendors DaTang concentrates on TD-SCDMA Others prompting WCDMA and CDMA2000 New trend to TD-SCDMA Foreign vendors Promoting WCDMA and CDMA2000 crazily Like to build networks cooperating with TD-SCDMA standard

Conclusion : 

Conclusion Possible schedule Year 2005 Number of license 4 pieces of 3G license Type of licenses If TD-SCDMA is ready 2 pieces of WCDMA+TD-SCDMA 1 TD-SCDMA 1 CDMA2000+TD-SCDMA If TD-SCDMA is not ready 3 pieces of WCDMA+TD-SCDMA 1 CDMA2000+TD-SCDMA