The Great Wall Group' s plan to move into the cell phone business has entered practical phase. Instead of entering the low-margin, chaotic medium and low-end cell phone market, the giant IT group will engage itself in the market of 3G mobile phone, sources said.

At the end of 2004, leaders of the Great Wall Group had expressed will to engage in cell phone and digital TV set manufacture. But its move to enter high-end 3G market is out of people's expectations.

In Great Wall's eyes, the downturn of the China-made cell phones in 2004 means a chance for reshuffle, sources said. Fundamental changes are likely to take place in the telecom industry, for the China Telecom and China Netcom will probably be granted 3G licenses this year. This makes the 2nd generation cell phones meaningless to the Great Wall. "Moving into the 3G business is by no means an impulse of the Great Wall."

The senior management team for the cell phone sector has been formed basically. The Great Wall Group had announced it would accomplish four key tasks in 2005. Of them entering the cell phone market is the top priority. The license for cell phone will be given to the group soon. The senior leaders of the group have been on meeting in Shenzhen during the past days. The only topic at the meeting is how to get started in manufacturing 3G cell phones. It is said the possibility of acquiring other cell phone manufacturers still exists.

By People's Daily Online