3G TD-SCDMA a Big Opportunity for Chinese Wireless Industry

TD-SCDMA represents a significant opportunity for China to establish a global communication standard, to lead the development of the technology, and to own more intellectual property rights, which in turn will lower royalty fees and manufacturing costs, reports In-Stat. However, homegrown TD-SCDMA has made China's road into 3G complex and tortuous, mainly due to the Chinese government's concerns about Intellectual Property Rights (IPRs), the market research firm says.

"The awarding of 3G licenses has been delayed due to the technological immaturity of TD-SCDMA," says Kevin Li, In-Stat analyst. "In-Stat regards the current round of testing as the pre-commercial application that embodies the Chinese government's preference for promoting TD-SCDMA's development ahead of WCDMA or CDMA2000."

Recent research by In-Stat found the following:

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  • TD-SCDMA subscribers will experience fast growth after 2008, and will approach 52 million in China by 2011, assuming that China Mobile obtains a TD-SCDMA license.
  • In the TD-SCDMA value chain, handset development still lags behind that of equipment systems. The main problems stem from issues related to power consumption and dual-mode seamless switching.
  • Data service and VASs will be the key content to be tested in 2007.
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    Posted to the site on 11th June 2007

    Posted to: www.cellular-news.com/story/24288.php