Report: China Mobile cool on 3G standard

February 1, 2006

China's adoption of a homegrown technical standard for third-generation (3G) wireless service might not be as done a deal as the industry had assumed.

A report Wednesday in the Daily Standard said the chief executive of wireless major China Mobile told investment bankers in Hong Kong that the company would likely bundle China-developed TD-SCDMA with other technologies rather than use it on a stand-alone basis.

Beijing announced recently that TD-SCDMA (Time Division Synchronous Code Division Multiple Access) would be the standard for 3G development in China; however, China Mobile's reported preference for WCDMA (Wideband Code-Division Multiple Access) could keep hope alive for foreign 3G developers who feared they were being shut out of the China market.

According to the Daily Standard Chief Executive Wang Xiaochu told UBS bankers that China Mobile liked WCDMA because it was a natural progression of the GSM technology that is currently in wide use in China and would require less capital investment than jumping to TD-SCDMA.

China Mobile is expected to obtain one of the 3G licenses the Chinese government will issue later this year.

Copyright 2006 by United Press International

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