China issues long-awaited 3G licenses

Source: Xinhua | 01-07-2009 17:35

BEIJING, Jan. 7 (Xinhua) -- China's telecommunications supervisor on Wednesday issued long-awaited third-generation (3G) mobile phone licenses to three mobile operators, a move that is expected to lead to billions of dollars being invested in building new networks.

The Ministry of Industry and Information Technology (MIIT) said China's biggest mobile operator, China Mobile, was awarded a license for TD-SCDMA, the domestically-developed 3G standard.

The other two main carriers, China Telecom and China Unicom, received licenses for the U.S.-developed CDMA2000 and Europe's WCDMA, respectively.

The 3G high-speed networks can handle faster data downloads, allowing handset users to make video calls and watch TV programs.

The MIIT also issued 23 regulations covering the requirements of 3G network operation, covering such aspects as market competition, consumer rights, user information security, telecommunication charges management and facility building.

The licenses were issued a day after China Unicom announced it had won government approval to merge with China Network Communications Group Corp. The new China Unicom will hold all the assets and business of the two former companies.

The merger marks the final move in the restructuring of the country's telecommunication industry, which saw six telecom operators rationalize into three: China Mobile, China Telecom and China Unicom.