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China finally awards telecom operators 3G licences

By Wang Xing (chinadaily.com.cn)
Updated: 2009-01-07 14:44

China's 3G technology is displayed at an international telecom technology expo in Beijing, Oct 25, 2008.  Chinese government today officially awarded the long-awaited licenses for third generation (3G) mobile network to the country's three telephone operators. [asiannewsphoto]

Chinese government today officially awarded the long-awaited licenses for third generation (3G) mobile network to the country's three telephone operators.

China Mobile, the world's largest mobile phone carrier, got a license to deploy 3G networks based on TD-SCDMA, a home-grown 3G standard. Smaller rivals China Unicom and China Telecom were granted licences for WCDMA and CDMA2000 respectively.

Related readings:  China Mobile falls after 3G licence issue  3G trouble for China Mobile?  China Unicom chairman sees 'golden time' for 3G services  State Council okays 3G license plan  3G spending to hit 280b yuan in next 2 years

The Chinese government hopes the new telecom investment following the 3G licensing would help stimulate the country's slowing economy and create more jobs.

Li Yizhong, minister of industry and information technology, said at an industry conference in December that China will spend 280 billion yuan on 3G networks in 2008 and 2009.

Chen Jinqiao, chief engineer from China Acedemy of Telecommunication Research under MIIT, further estimated the 3G network construction would attract 1.8 to 2 trillion yuan related investments.

China's 3G licensing has long been postponed due to the government's support of TD-SCDMA, which was believed less mature than its foreign rivals WCDMA and CDMA2000.