The long-lasting contention about handing out the 3G licenses was brought to an end on the last day of 2008.
The executive meetings of the State Council on Dec.31, 2008 ended up reaching the agreement of the issue of 3G licenses and the prop-up of 3G standard TD-SCDMA. The 3G licenses are about to be given away selectively in Jan.2009.
Time: Before the Spring Festival
According to the reports furnished by the Industry and Ministry of Information, the government is going to issue three kinds of licenses: TD-SCDMA, which has intellectual property rights and technology standard, granted for China Mobile, WCDMA for China Unicom and CDMA2000 for China Telecom.
The announcement on the website of the Industry and Ministry of Information shows that the State Council demands successful issue of TD-SCDMA, WCDMA and CDMA2000 through legal proceedings and enterprise applications, which could expand domestic demand, promote economic growth and optimize telecommunication market structure.
Journalists are also informed that the date of issue is no later than the Spring Festival which is to fall on January 26, 2009.
Effect: Spark 1.5 trillion investment
3G, or the third generation of mobile communication, is supposed to achieve mobile Broadband, processes various kinds of media style like image, music and video stream and provides diverse information services, including web browsing, telephone meeting and Electronic Commerce.
The permission of the State Council is the most pivotal step of the whole course of releasing 3G licenses.
A report from Datang Telecom indicates that straight investment on 3G in the next five years is around 1.5 trillion yuan, contributing a 10 trillion yuan increase in China's GDP. This massive amount of growth is to boost national economy remarkably. Nevertheless, some experts point out the imperfection of this 3G project. 3G is applied to raise domestic demand and allay the economic crisis, but unlike the direct way infrastructure projects alter the domestic demand, 3G benefits the top enterprises most. When it comes to below average companies, 3G needs some more time to make them thrive.
Competition among three telecom powerhouses upgraded
Journalists learned that China Mobile, China Unicom and China Telecom are dynamically preparing for occupying the market.
Yang Peifang, the general secretary of telecom economic experts committee of the Industry and Ministry of Information, is sensible that for the future competition of 3G, China Mobile and China Telecom are well-prepared, China Unicom is about to be lagging behind because of its reorganization. The issue of 3G licenses is hard to change as to the whole competitive landscape.
The 3G experts are wary to say about when 3G is able to bloom. The future of 3G depends on whether the operators will do well in applications and services. It requires at least two years for 3G to thrive in China.
By People's Daily Online
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