Source: CCTV.com

01-08-2009 11:09

China's Ministry of Industry and Information Technology has issued licenses for next generation, or 3G, mobile networks. The licenses were issued to its three state-run carriers on Wednesday afternoon. The world's largest mobile carrier, China Mobile, and smaller rivals China Unicom and China Telecom also received the licenses.

The Ministry of Industry and Information Technology  has issued licenses for next generation, or 3G,mobile networks.

The long-awaited issue of the licenses has drawn a mixed reaction from the industry, enterprises, and ordinary people. Guan Xin takes a look at what the country is saying about the revolutionary mobile service.

Although the government took a low profile in issurance of the 3G licenses, the impact is expected to be huge. Over the next three years, direct investment in the construction of 3G mobile networks will reach a massive 280 billion yuan. The stock market led the reaction, with 3G-related shares all surging in the past 2 months.

Huang Xiangbin, analyst of Beijing Xinda Securities co., says, "in 3 to 5 years, fixed assets investment for 3G will reach 300 to 500 billion yuan, which is good news for the telecom industry and related equipment manufacturers."

Chen Shanzhi, chief engineer of Datang Telecom says, "domestic telecom equipment manufacturers accounted for 20 percent of the market share for the second generation. Now with Chinese-made 3G technology the standard, domestic firms may grab 80 percent of the market."

China Mobile led the race to issue 3G-only numbers that start with 188. Residents can apply for a number with their national ID. But many people are still waiting to see how it all pans out.

A Beijing resident says, "I will wait longer, because they've just issued the licenses. It may take some time before the service matures. Although the function is really amazing, I think I will consider it in the future."

Analysts say the launch of 3G technology is not just a big opportunity for the 3 state-owned telecom operators, but also puts them at the same start line in the domestic market. The market as a whole is also facing a reshuffle. But the fierce competition is expected to improve the quality and service of the industry.

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Editor:Qin Yongjing