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Monday, January 5, 2009

China Moves Forward With Telecom Upgrade

China's State Council has given the green light to the Ministry of Industry and Information Technology to issue third-generation licenses to operators, China Daily reported Monday. Li Yizhong, head of the ministry, said that three permits will be issued in early 2009. The long awaited permits will enable the recipient companies to legally offer Chinese citizens upgraded mobile services.

Authorities have, however, opted to give China Mobile a license to operate services based on China's homegrown TD-SCDMA technology while China Unicom -- the country's second largest wireless carrier -- will get a license to offer services on WCDMA, which is widely used in the European Union. China Telecom will receive a permit for CDMA2000, which is used in the United States. China Daily said the change could influence the competitive landscape of China's mobile market as firms with the established international standard licenses could have a leg up. -- Winter Casey

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