Datang: Interests in 3G should be maximized
By Zhang Yu'an (China Daily)
Updated: 2004-03-24 09:23

A leading domestic mobile equipment manufacturer has urged China to maximize its interests in the development and application of 3G (third generation) mobile communications technology.

According to a report recently released by the Corporate Department of Datang Mobile, the country should grasp the unprecedented opportunity for the development and application of 3G mobile communications technology to promote the development of its mobile equipment manufacturers and operators and better benefit end-users.

At the same time, it should never allow the repeat of the phenomenon of the 2G technology development and application, in which the procurement of domestically manufactured equipment accounted for less than 5 per cent.

The development and application of 3G technology will have a direct impact not only on the development of China's mobile communications industry, but also on the quality of the whole telecommunications industry and the competitive pattern of Chinese enterprises against their foreign rivals.

Moreover, "it will influence the speed of the national economic growth in the future," the report stresses.

The report says that to maximize the interests of China, sufficient attention should be paid to the mobile service operators, equipment manufacturers and end-users as well as building a sound policy environment.

Regarding operators, the report says that under the condition of a healthy development of the mobile service operations, efforts should be made in four major factors: a mature 3G technology, an operational model that adapts to the conditions of China and the establishment of mature and stable profit-making businesses and differentiated services for the benefit of multi-users, and an environment in which multiple domestic equipment suppliers can participate.

For instance, the number of participating domestic chip makers should be no less than four while domestic mobile phone makers should surpass 10, the report says.

At present, the ratio of mobile phone users in the Chinese mainland is about 20 per cent of its total population, and the majority of the end-users use mobile phones for voice communication and short message services.

Therefore, further studies should be conducted into the purchasing power of high-billing-rate data services to be provided by the 3G technology.

In the meantime, the country should seize the opportunity to help promote the development of its communications equipment manufacturing industry.

To do so, the country should make sure that the Chinese enterprises master the 3G core technology, and domestic firms are able to occupy all the links within the 3G industrial chain. At the moment, quite a few domestic enterprises participate in the supply of equipment, and domestic communications equipment manufacturers improve their innovative capability and comprehensive quality.

Datang Mobile has made great efforts in the development of the 3G TD-CDMA standard in which China has independent intellectual property rights. The TD-CDMA standard has become one of the three major international 3G standards in the world, the report says.

Many domestic and overseas companies also involve in the TD-CDMA, such as Datang, Zhongxing, Huawei and Putian as well as Siemens, Nortel Networks, Phillips and Samsung.

In terms of the potential for the 3G market in China, the report says that consideration should be given to the consumption level of Chinese users.

In Europe, 3G mobile phone users in general are young and their demand is diverse. For this reason, the report urges that the 3G service functions with multi-media features should meet the needs of the market so as to provide end-users with better voice communication quality and personalized usage models.

At the same time, it is quite important to have a rational billing rate. At present, if three major international 3G standards are adopted in China simultaneously while the end-users prefer smooth inter-connection among them and prefer international roaming services, attention should be given to whether the consumers would accept fees derived from the multi-purpose models and whether the operators should have pre-set solutions.

The report praises the Chinese government saying it has a rational, practical and active strategy in the 3G technology development and application.

It also said that the country should choose an appropriate time to start the 3G market and it prefers a start time of no early than 2005. By doing so, the country can maximize its interests in the 3G sector, it says.

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