China 3G: Have it Your Way

Posted on May 26, 2008
Filed Under Apparatchiks, China Business, China Internet, Mobile, Wireless Networks |

China Unicom (NYSE: CHU, 762.HK, 600050.SH) users are starting to switch from Unicom’s CDMA to GSM network, reports Oriental Morning Post. According to the report, users going GSM must relinquish their former mobile number. China Unicom is currently in talks with China Telecom (NYSE: CHA, 728.HK) for the sale of its CDMA business.

China Unicom joins China Netcom in a new China Unicom, keeping its GSM network but passing its CDMA network to China Telecom. China Telecom upgrades the CDMA network to CDMA2000, the new China Unicom rolls out a WCDMA network and China Mobile gets the railroad’s phone system and a 6 month head start with its TD-SCDMA network.

It’s either the wisdom of Solomon or the actions of a deranged Monty Hall, but if users can choose the 3G whopper meal of their choice then it’s all worth it.

Comments

3 Responses to “China 3G: Have it Your Way”

Ironfrost on May 27th, 2008 9:39 am

What’s your source for the ‘6 month head start’ theory? New information, or just the rumour that’s been going around the industry for the last few years? Personally I’m sceptical that this would happen; based on the performance in the current trial stages there’s no way TD-SCDMA can be competitive with WCDMA or EVDO with only six months headstart. Considering how much the government have been doing to support TD, I can’t see them throwing all their effort away like that.
jim on May 27th, 2008 10:38 am

Baseless rumor of course.

However, China Mobile will get its head start. There’s been no formal announcement of what licenses will be issued and when (at least to my knowledge). The actual mechanics of the telecom reorganization will wait until the Olympics are over. That still leaves China Mobile with an operating (at whatever level) 3G system at least a couple months ahead of China Telecom and New China Unicom.

The 6 month head start doesn’t mean that TD-SCDMA is a superior technology, just that China Mobile has a 6 month sales lead in the most of the tier 1 and Olympic cities. Those are the target markets for 3G.

I really hope that by the end of 2008 there’ll be 3 competing 3G technologies that consumers will be able to choose from. I just think that China Mobile will the only company with reasonable urban coverage and the largest subscriber base.

And that’s not even accounting for any shenanigans from MII.
Ironfrost on May 27th, 2008 8:28 pm

Heh, it looks like my previous comment wasn’t very clear - I wasn’t suggesting that China Mobile would get no headstart, I was saying (or trying to say, at least) that I thought it was likely to be a lot longer than six months. If Netcom is allowed to launch a WCDMA network only six months after Mobile’s TD-SCDMA launch, I doubt that TD will stand much of a chance, and that’s something that the MII won’t allow to happen.

Maybe I’m being too cynical and we’ll get WCDMA this year after all, but I’m not holding my breath.