China Analysis
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  • Beijing Mobile Still Favours WCDMA

Beijing Mobile has started offering EDGE to its customers, though it has not made an official announcement for it. The service positioned as "2.75 Generation" and will provide a downstream speed of 190Kbps, with a peak speed of 473 Kbps, 3-4 times faster than the current speeds offered by GPRS.

This move suggests that Beijing Mobile favours a GSM evolutionary path and may also upgrade EDGE to WCDMA at a suitable time. It may be recalled that sometimes back MII (Ministry of Industry and Information) had cautioned against large scale roll out of WCDMA to protect the interest of TD-SCDMA. The EDGE route is being viewed as a sneaking strategy.

 

  • TD-SCDMA Future Still Uncertain

More news has become available regarding TD-SCDMA roll out that in fact reflects the Chinese government's position on this matter. It is understood that China Mobile had put forward the following three different investment plans to NDRC (National Development and Reform Commission), which is in charge of large scale nation wide investments.

Low level investment: 13 billion RMB to only cover hot spots in the urban areas

Middle level investment: 18 billion RMB to have an extensive coverage of urban areas

High level investment: 27 billion RMB to have nation wide coverage

It is understood that China Mobile favours the middle level investment considering that the 3G operators else where are struggling with it. However, NDRC favours the third investment plan to boost the development of TD-SCDMA based industry

 

A China Mobile driven process of equipment purchase from several vendors is in fact, reverse bidding but somehow it is being referred to as bidding in China. It is understood the first phase of the bidding process, in which the China Mobile invites broad expression of interest from the potential vendors and was scheduled to start on Feb 9 has been postponed to sometimes in March on the request of the Chinese government. Detail...

 

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