China to issue 3G licenses

Posted on December 12, 2008  /  0 Comments

China will issue third-generation mobile phone licenses as early as this month and expects companies to spend 200 billion yuan ($30 billion) on installing equipment, the industry minister said Friday.

China has the world’s biggest population of mobile phone users and adoption of 3G — which has been long delayed — was eagerly anticipated by equipment suppliers, which are seeing demand elsewhere decline due to the global financial crisis.

“The 3G licenses will be issued either later this year or early next year,” Li Yizhong, whose ministry regulates telecoms, said at a news conference.

Third-generation mobile phone technology supports Web surfing, video downloads and other added services. Its adoption in China is expected to boost demand for mobile service and spur growth of new services.

China’s mobile phone market has grown to 650 million accounts, Li said.

Foreign suppliers such as Nokia Siemens Networks and Sony-Ericsson will be competing with fast-growing Chinese rivals Huawei Technologies Co. and ZTE Corp. to sell switching gear, base stations and other technology.

Read the fullsroty in Associated Press here.

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