China's Homegrown 3G Standard Ready For Network

BEIJING -(Dow Jones)- China's homegrown third-generation mobile standard is sufficiently advanced to begin developing a domestic 3G network, the Communist Party newspaper reported Friday.

The TD-SCDMA technology is stable and China is prepared to establish a 3G network on this standard, the People's Daily said.

The article didn't give a timetable for 3G licensing.

China has invested less than $100 million in the project, the People's Daily said, citing an unnamed Ministry of Information Industry official.

"China has been able to produce the desired result of the TD-SCDMA standard in a short time," the official said. "Compared with Europe and the U.S. we are relatively late in creating our standard and our investment is far smaller."

TD-SCDMA, which stands for Time Division Synchronous Code Division Multiple Access, competes with the U.S. CDMA 2000 and the European WCDMA standards.

The number of firms cooperating on developing the TD-SCDMA technology has expanded from eight to 25, the report said, citing the Ministry of Information Industry. More than 50 foreign and domestic companies are involved in the research and development project.

The report said China has already received patents for the TD-SCDMA technology in the U.S., Japan, and other countries.

The completion of the homegrown standard clears the way for China to begin constructing a 3G network and issuing 3G operating licenses. China has made the completion of the TD-SCDMA standard a key criteria for building a domestic 3G network.

Telecommunication-equipment companies have been waiting for years for China's government to let wireless service providers start building 3G networks, which transmit more data faster, and enable video downloading and other advanced functions on mobile phones.

Executives at equipment companies have said in recent months they expect the licenses to be issued in the first half of 2006.

China has said its goal is to have 3G services available before the 2008 Olympics to be held in Beijing.

-By Rick Carew, Dow Jones Newswires; 8610 6588-5848; rick.carew@dowjones.com

-Edited by Sharon Buan

(END) Dow Jones Newswires "

Posted to the site on 6th January 2006