China's 3G drags China Mobile's future

via Wikipedia China Mobile's market position of 70 percent in the country's mobile communication is at stake as it has been forced to adopt the home-made 3G standard TD-SCDMA, while competitors can use the more advanced European and American standards.
China's mobile market leaders was already expected to be in trouble when the first details of the deal emerged in May. Now, on Wednesday, China Mobile's chairman and CEO Wang Jianzhou complained that the TD-SCDMA's technology was two years behind, compared to Europe's WCDMA and US’s CDMA2000 3G standards, writes the Financial Times.

Wang Jianzhou, China Mobile’s chairman and chief executive, said: “[TD-SCDMA’s] network operation is normal but there are still a lot of problems. Problems remain in handset choices, quality, performance and prices, where most users complained.
“Compared with other 3G technologies, TD-SCDMA is still a few years behind.”

The move by the central authorities must have come after years of fierce resistance by China Mobile, who had been benefiting of almost a decade of political windfall in its struggle with other competitors. Now the second in the play, China Unicom, seems to have for the first time a real position to compete with the number one in China's telecom.

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