3G launch on hold

Telecoms

19 October 2007

China's telecom regulator announced that there will be no timetable for the issuance of licenses for third-generation (3G) mobile devices, despite speculation that license would be given out in time for the Olympics next summer, the Financial Times reported. Lou Qinjian, the vice minister of information industry, said at the 17th party congress that while 3G technology was "mature" internationally, its operating model and capacity for future development were "still not that great." Lou's remarks may point to concerns that the new 3G networks will not be as profitable as expected for its four big state-controlled operators. Some analysts believe Beijing's main reason for the delay is to allow for the home-grown TD-SCDMA technology to catch up with the already widely used European and American 3G standards.

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