China will allow its three mobile phone operators to develop high-speed networks using third-generation technology (3G) either this Dec. or at the beginning of next year, said a senior Chinese official.
3G networks handle faster data downloads so cell phone users would be able to make video calls and watch TV programs.
The country's top three telecom companies were expected to invest at least 200 billion yuan (29.4 billion U.S. dollars) next year to develop the 3G-based mobile networks, said Minister of Industry and Information Technology Li Yizhong at a press conference on Friday.
"We agree that the time for issuing 3G licenses has arrived now," said Li. "The three companies have abundant funds to do that. It's also good for boosting investment and supporting the economy."
The technology upgrade comes after major industry restructuring this May which allowed China Mobile, China Unicom and China Telecom to provide both fixed-line and wireless phone services.
"The restructuring of China's telecom industry has been basically completed, including the asset transfer," said Li. "Our next step is to issue the 3G licenses as we promised."
As planned, China Mobile will apply the Chinese-developed 3G standard of TD-SCDMA (Time Division Synchronous Code Division Multiple Access), said Li. China Unicom and China Telecom will use Europe's WCDMA and North America's CDMA 2000 respectively.
China Mobile conducted commercial trials of 3G services based on TD-SCDMA in ten major cities and provided 3G services for the Beijing Olympics in August.
China Mobile Chairman Wang Jianzhou said in August that his company had received many complaints about network stability during the trial operation. He promised to make improvements.
Source: Xinhua
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