China 3G licences seen delayed to 2004 - Qualcomm
( 2003-09-19 16:27) (Agencies)
China has delayed a long-awaited decision on next-generation mobile phones until 2004 to conduct more tests and consider issues such as how to afford the networks, Qualcomm Chief Executive Irwin Jacobs said on Friday.
Cellphone technology vendors such as Qualcomm Inc have been waiting for regulators in the world's biggest cellphone market to give the green light to start building third generation (3G) networks offering high-speed data services.
"Originally I thought a decision would be made before the end of this year. I think it's clear now that that will go into next year," Jacobs told reporters during a visit to Beijing in which he met various Chinese officials.
The Ministry of Information Industries, the sector regulator, was holding fresh tests of different 3G technologies, and a final report on the results was not expected until September 2004, Jacobs said. He added that a decision could be announced before then.
"There's been a lot of testing, clearly a lot of discussion," Jacobs said.
At stake is billions of dollars in contracts for new phones, chips and network equipment that will be needed to upgrade to 3G, which promises services like fast Internet connections and video and music downloads.
But the decision involves wading through an alphabet soup of competing technologies based around CDMA, which was developed by San Diego-based Qualcomm.
SETTLING ON CDMA
The company gets paid royalties for any CDMA flavour, but it stands to make more from its CDMA 2000 version, which is already being rolled out by China's second-largest mobile firm, China Unicom.
Europe is fitfully deploying networks based on a standard developed by Sweden's Ericsson and Finland's Nokia called WCDMA, which boasts faster speeds and higher capacity but is more costly.
China is also studying a third, home-grown choice known as TD-SCDMA that would make it less reliant on foreign suppliers.
"There is also the decision as to whether the carriers will be allowed to make their own choice of technology or whether the government will allocate the technology," Jacobs said.
"There are indications that the carriers will be able to make the decision but...there will be some very strong advice given," Jacobs said.
Officials were also discussing how carriers would raise the cash to build the new networks, which require different equipment from the existing GSM networks that are used by the vast majority of China's 240 million mobile phone subscribers.
Apart from China Unicom and top wireless firm China Mobile, the country's two fixed-line companies, China Telecom and unlisted China Netcom, are expected to receive 3G licences as well.
Jacobs said compatibility problems posed by operating both GMS and 3G networks could be overcome with the company's new chips and network equipment that would enable phones to switch between the two systems.
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