Government gives China Mobile an advantage

Image by Getty Images via DaylifeThe future of the third-generation telecommunication (3G) in China has kept many busy, as the now announced deployment will free billions of investments, both for domestic and foreign telecom suppliers. ChinaBizGovern (follow that weblog!) points at a set of support actions by the government for China Mobile that might change the relations between telecommunication providers profoundly.
Key in the recent years was the development of TD-SCDMA, China's home grown standard for 3G that got much political support, but was during the test not that well. On top of that it was nowhere else in the world deployed, unlike its American and European competitors. When China Mobile got the privilege of deploying the TD-SCDMA it was perceived as a way to curtail China's largest telecom company, who had earned many enemies in its short history. Its competitors China Telecom and China Unicom/Netcom could go ahead with the US and European technologies, CDMA2000 and WCDMA.
But the new support measures published yesterday by China's Ministry of Industry and Information Technology (MIIT) might push the balance again to the favor of China Mobile. Only the fact that China Mobile get much more bandwidth than its two competitors might define the market structure in favor of Goliath.

Commercial
Doing business in China is never easy, even not when you are one of the big domestic players. Do you want to know more about China's telecommunication industry? Ask one of the speakers at the China Speakers Bureau.Janet Carmosky
by Fons1 via Flickr

Related articles by Zemanta

• China entering the 3G life
• The Realness of 3G Opportunity in China :: 对3G序幕正式拉开时机遇的一些思考
• 3G mobile diversity in China
• China lifts roadblock for 3G phones
• 3G mobile phone licenses issued in China
• Xiaolingtong's spectrum traded for 3G
• Janet Carmosky joins the China Speakers Bureau