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Chinese official sees 3G licences issued in 2008

China is likely to issue the long-awaited third-generation wireless telecommunications licenses by the end of this year, state radio reported late Tuesday, citing an unnamed manager at the Ministry of Industry and Information Technology.

Late last month, MIIT Vice Minister Xi Guohua said the time was "basically ripe" for China to issue the 3G licenses but stopped short of giving a timetable.

The report said the total construction cost for the nationwide 3G networks would be at least CNY800 billion ($118 billion).

China's three telecom operators - China Mobile Ltd., China Unicom (Hong Kong) Ltd. and China Telecom Corp. - will be granted one 3G license each, and have outlined investment plans totaling CNY210 billion for the first phase of network construction, the report said.

The 3G licenses will help boost domestic consumption and drive growth in various industries, which is in line with the government's goal of stimulating the domestic economy in the face of weakening external demand, analysts said.

As part of the expected economic benefits, the 3G services will likely boost demand for handsets, the report said.

Assuming China adds 50 million new 3G users each year and each user buys a handset averaging CNY1,000, that will contribute CNY100 billion annually to the industrial output in the mobile phone equipment production sector, the report said.

Источник: Total Telecom

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