Kai Kai WeiWeiHelsinki University of TechnologyHelsinki University of Technology

Telecommunications Software and Multimedia Telecommunications Software and Multimedia LaboratoryLaboratory

kaiwei@cc.hut.fikaiwei@cc.hut.fi

3G situations in China3G situations in China

Agenda

• Current mobile market situation in ChinaCurrent mobile market situation in China• Attitude of government Attitude of government • Attitude of old and new operatorsAttitude of old and new operators• Attitude of vendorsAttitude of vendors

Distribution of telecom services revenue

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

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Five Tele OperatorsFive Tele Operators • China MobileChina Mobile

• GSMGSM• China UnicomChina Unicom

• GSMGSM• CDMACDMA

• China Telcom, China NetcomChina Telcom, China Netcom• Fixed networkFixed network• PHS (Personal Handyphone System)PHS (Personal Handyphone System)

• China RailcomChina Railcom• Fixed networkFixed network

Way to issue licenseWay to issue license • AuctionAuction

• plenty income to govermentsplenty income to goverments• heavy burden to operatorsheavy burden to operators

• public biddingpublic bidding

• manipulable, not choose winner only based on price offer, manipulable, not choose winner only based on price offer, but also its capability and technical offer are taken into but also its capability and technical offer are taken into accountaccount

• left room for operators to build up networkleft room for operators to build up network

Government Attitude on 3G • 3G technology is 3G technology is not mature mature

– changing standardchanging standard– existing problemsexisting problems– no killer applicationno killer application

• China initialized 3G standard is not ready

• 3G field test is going on, will complete on Q4/2004

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 • CMCC ( China Mobile Communication Company)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 • Unicom ( China United Communication Company)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-DOfuture: depends

Attitude of operators on 3G • China Telecom & China NetcomChina 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 • China RailcomChina Railcom

– Small fix network operators– No interesting on 3G market yet

Attitude of vendors on 3G • Local vendorsLocal 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 • Possible schedulePossible 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