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What's Behind 3G Fever?
2005-6-6 12:28:23
China's mobile industry is showing stronger enthusiasm about 3G.

Related Event: Approaching 3G

As the commercial use of China's 3G(3rd generation) mobile phone technology draws near, the country's mobile industry is showing stronger enthusiasm than ever.

International telecom manufacturer Nokia has threatened to withdraw its investment from China. OKWAP, a newly ratified handset maker announced that it got China's first 3G license, which has proved to be false.

The recent tumult comes in the wake of Chinese Minister of Information Industry Wang Xudong's remarks at the Fortune Forum late last month that "China promises to provide 3G service by 2008."

Concluding from Wang's remarks that the government would delay the time for 3G licensing, companies have pressed the government to push forward China's 3G process.


Chinese mobile telecom operators are not necessarily in a hurryto launch 3G services. In China's booming mobile communication market, they would rather continue safely making profits in the present environment.

But fixed line operators have a different story. With little room for expansion, they are eager to enter the profitable mobile market by taking advantage of 3G.

Prompted by the poor performance in the domestic market last year, China's homebrand handset makers also pin their hopes on 3G,in expectation of quick new growth with the technology.

Government statistics show that this year China's capacity for mobile phone making has surpassed 500 million sets, which indicates a much greater supply than demand. Under such a backdrop,new comers in the industry, like OKWAP, are eager for the opening of the 3G market.


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