china telecom

China to award 3G licenses

Phil Goldstein — Fri, 12 Dec 2008 11:19:31 -0500

China will issue 3G licenses in early 2009, which it expects to generate $29 billion, according to Li Yizhong, the Minister for Industry and Information Technology. The country is giving licenses to China Mobile for TD-SCDMA technology, to China Unicom for WCDMA technology and to China Telecom for CDMA 2000. Article

Alcatel-Lucent boss to reveal his vision of the future Dec. 12

Jim Barthold — Wed, 03 Dec 2008 08:29:05 -0500

Having thought about it since October, new Alcatel-Lucent CEO Ben Verwaayen will reveal his strategic plan for the powerful, albeit limping, telecom vendor, when he hosts a conference Dec. 12, according to published reports.

The December conference will no doubt cover what Verwaayen has learned since saying he would undertake a "comprehensive" strategic review to figure out how to bring back profitability. Alcatel-Lucent has posted losses since Alcatel acquired Lucent for $11.4 billion in 2006. The company continues to go through the rigors of "restructuring" by shedding 16,500 of the total 76,410 jobs by the end of next year but this hasn't been enough to stem the losses that many analysts blame on a fuzzy business focus.

Perhaps it will help (can't hurt) that China Telecom has tapped Alcatel-Lucent to increase the capacity and coverage of its nationwide mobile voice and data network with a $230 million deal that includes providing end-to-end CDMA networking for 56 cities and nine provinces in China.

For more:
- see this article

Related stories:
Alcatel-Lucent CFO resigns
Alcatel-Lucent narrows loss

China Telecom will spend $4 billion on CDMA expansion

Sue Marek — Fri, 18 Jul 2008 12:02:41 -0400

As part of its restructuring, Chinese operator China Telecom will assume control of China Unicom's CDMA network and spend $4 billion to expand the network into rural areas rather than improving capacity or quality of service in existing markets.

The news is certainly promising for CDMA infrastructure vendors such as Alcatel-Lucent. The company has been struggling with economic turmoil in the market, tight credit and stiff competition from vendors such as Huawei.

China announced its telecom restructuring plans earlier this year and said that it would reduce its number of state-owned carriers to three.

For more:
- see this article

Related articles:
Boos and catcalls rain down on Alcatel-Lucent CEO
China moves ahead with telecom industry shake up

China Mobile to issue TD-SCDMA tender after Olympics

Lynnette Luna — Mon, 16 Jun 2008 12:03:52 -0400

China Mobile Communications is expected to issue a tender for the second phase of its TD-SCDMA rollout but will wait until the Olympic games are over. According to an article in the South China Morning Post, China Mobile is being forced to stick with the homegrown technology, despite reports that China Mobile isn't so enamored with it. Meanwhile, rivals China Unicom and China Telecom will be allowed to use EV-DO or WCDMA to compete in the 3G market.

The 2008 Olympics are also expected to play a big role in TD-SCDMA's future, as the country looks to showcase its 3G capabilities there and demonstrate to the world how modern it is. China Mobile has been trialing TD-SCDMA in eight cities since April 1.

"China Mobile will not expand the network to other cities before the Olympics," said Fok Tung-ling, chairman of Comba Telecom Systems Holdings, one of the equipment suppliers to China Mobile's TD-SCDMA networks. He added that the "next phase of the TD-SCDMA network expansion will not be limited to the existing 10 cities, and is likely to be aggressively rolled out on the mainland."

During its initial launch, 60,000 dual-mode TD-SCDMA/GSM handsets and 15,000 data cards will be on sale in China Mobile's TD-SCDMA experience shops, ranging in brands such as Samsung, LG, Hisense, Lenovo, ZTE, and Postcom. These handsets are in the mid- to high-end range with a built-in camera, wide screen and multimedia applications. China Mobile is believed to be selling these phones for subsidized prices between $286 and $572.

For more:
- read Cellular-News

Related stories:
Too good to be true? China plans to issue 3G licenses. Chinese 3G editorial
China Mobile moves ahead with TD-SCDMA. TD-SCDMA story

Is China finally moving to 3G?

Sue Marek — Tue, 27 May 2008 11:30:49 -0400

China reportedly is ready to issue 3G licenses after six years of promises and delays. While announcing it plans to restructure China's telecom service providers, China's regulators also announced that three 3G licenses will be granted once the restructuring is complete.

The Chinese government has been delaying the 3G process in a bid to get its home-grown standard, TD-SCDMA, up to par with WCDMA and CDMA 1xEV-DO. To date, the country's carriers have spent a significant amount of money on TD-SCDMA trials and may possibly offer services during the 2008 Olympic Games this summer.

The impending 3G awards should be good news for the world's vendors, which have been banking on China opening up the market to 3G and bolstering their business. There should be some aggressive fighting for contracts, especially when Huawei and ZTE have been fighting for market share outside of China.

For more about China's 3G plans:
- read this Unstrung article

Related stories:
- Analyst: China's 3G still years away. See this China 3G story
- China to begin home-grown 3G technology trial. See this TD-SCDMA story
- China continues to hedge on 3G. See this 3G in China story

ALSO NOTED: LIMO OS; U.S. Cellular's new Q; and much more...

Mon, 31 Mar 2008 07:59:50 -0400

> LIMO Foundation ready with mobile Linux OS. Article

> U.S. Cellular offers the Motorola Q9c in two colors. Article

> Mobile phones cut into China Telecom's profits. Article

And Finally... Is text messaging a threat to the arranged marriage in India? Article

ALSO NOTED: Gartner says AT&T is magic; Telecom-Unicom and Mobile-Netcom; and much more...

Wed, 15 Aug 2007 06:59:50 -0400

> Fierce 15 winner Interop Technologies has inked deals with three regional operators for messaging and WAP services. Release

> Gartner puts AT&T in the "magic quadrant" for wireless service providers. Release

> M:Metrics says mobile social networking has 12.3 million users in the U.S. and Europe. Release

> China Telecom to merge with China Unicom, while China Mobile could merge with China Netcom? Article

And Finally... A man (bloke) throws a mobile phone a "country mile" for a new record in the great sport of phone throwing. Article

China Netcom slims down for 3G launch

Tue, 16 Jan 2007 19:01:34 -0500

China Netcom, that country's number two fixed-line operator, is selling its fixed-line assets in two regions to its parent company China Netcom Communications Group for $448.9 million. The company specifically plans to sell its assets in Guangdong province and Shanghai, which are two areas largely dominated by rival China Telecom. Shedding the assets will allow China Netcom to streamline before it launches its 3G mobile services, which will be heavy on initial costs. While the industry is still waiting on those 3G licenses in China, many pundits are hopeful they will come out this year.

For more on China Netcom's fixed-line assets sale:
- see this article from the WSJ (sub. req.)

ALSO NOTED: Rogers adds 245K subs; Gates touts car radio SMS; and much more...

Sun, 07 Jan 2007 19:01:30 -0500

> Rogers adds 244,500 more wireless subscribers in Q4. Release

> Bill Gates touts sending and receiving SMS through car radios. Article

> Hutchison says Essa group only has limited refusal rights to bidders for its stake in the wireless JV. Article (WSJ sub. req.)

> Mobile firms in China, including China Netcom, China Mobile and China Telecom plan to list their shares domestically. Article (WSJ sub. req.)

> After what seems like a year-long hiatus, wireless chargers are back in the news cycle. Article

And Finally... Photos of the Sony Ericsson W880. These are teasers really... Photos

China Telecom approached by foreign investors

Wed, 27 Sep 2006 20:01:34 -0400

Following reports that China Telecom was close to selling a stake to a foreign strategic investor, China's largest fixed-line operator says it has indeed been approached by five foreign, interested parties but said that uncertainty around 3G licensing in China and rules on IPTV need to be resolved before it could get more involved in talks with potential investors. Reports had said that Japan's NTT DoCoMo, France Telecom, Verizon Communications, Deutsche Telekom and Singapore-based SingTel were potential suitors. You can bet that investors are clamoring for a piece of China Telecom as China is a high-tech market relatively untapped by foreign investors.

Read more about China Telecom's potential suitors:
- at the GlobalInsight Web site

Related articles:
- 3G in China is big money
- SK Telecom invests in China Unicom

ALSO NOTED: China Telecom may buy China Unicom's CDMA network; New Nokia CEO to make house calls; and much more...

Sun, 13 Aug 2006 20:00:37 -0400

> Hong Kong newspapers are reporting that China Telecom is offering to buy China Unicom's CDMA network to prepare for the issuance of 3G licenses in the country. Article

> New Nokia CEO plans to make house calls on his U.S. operations one week out of every month. Article (Wall Street Journal sub. req.)

> Apertio is aiming for an IPO in 2007. Article

> Nokia says that it has started deliveries of Nokia N71 Softbank in Japan. Article

And Finally... Spark Fun Electronics have developed an old-fashioned rotary phone that contains a GSM mobile phone module inside. Article

China Mobile still wants international presence

Wed, 05 Jul 2006 20:01:38 -0400

China Mobile will continue to pursue overseas acquisitions in spite of its last-minute decision to end a $5.3 billion bid for Millicom, according to the Financial Times. The collapse of the deal earlier this week opened up fears that China Telecom was struggling to build an international footprint. But sources close to the company said China Mobile realized how difficult it would have been to manage Millicom's operations in emerging markets and it couldn't justify the $48 per-share bid. Millicom shares fell 25 percent to below $34 each after it announced that talks had ended.

For more about China Telecom's international expansion plans:
- read this article from the Financial Times

Editor's Corner

Sun, 26 Feb 2006 19:01:40 -0500

The Chinese government's adamant quest to push the home-grown, never-deployed TD-SCDMA 3G standard looks like it may hurt some of its own carriers and equipment suppliers rather than establish the country as a leader in advanced technology.

While TD-SCDMA boasts several technological advantages over W-CDMA and CDMA2000, such as supporting more users on a given frequency band, economies of scale matters more now that W-CDMA and CDMA2000 are more mature technologies. Despite the government's push to give TD-SCDMA a level playing field by halting all W-CDMA test networks, those operators forced to deploy TD-SCDMA will still be at a major disadvantage. Norson Telecom Consulting expects China Mobile to receive a WCDMA license, while China Unicom will be given the OK to operate CDMA2000. Landline providers and wireless newcomers China Telecom and China Netcom will probably be the recipients of TD-SCDMA licenses.

That means China Mobile and China Unicom will have an inherent advantage, with the ability to roll out proven technology faster while taking advantage of economies of scale for equipment and handsets. In this extremely price sensitive market, why would Chinese consumers opt to purchase more expensive technology from TD-SCDMA carriers who will probably offer worse coverage than their competitors? Will the government have to subsidize TD-SCDMA services just to make the technology a success? How far will the Chinese government go to make sure TD-SCDMA gets equal footing with today's 3G standards? - Lynnette

Does TD-SCDMA sidestep CDMA patents?

Wed, 15 Feb 2006 19:01:37 -0500

Will TD-SCDMA sidestep patents owned by Qualcomm? That was an interesting topic during the TD-SCDMA Forum's press conference at the 3GSM. The Chinese home-grown standard is backed by the Chinese government to promote domestic business and bypassing the royalties demanded by Qualcomm and other vendors. Yet the TD-SCDMA Forum hasn't even spoken to Qualcomm and Ericsson, another big CDMA patent holder, about IPR issues. The issue could become more sensitive given the fact that China appears to be favoring TD-SCDMA in a big way, despite its vows not to. It has ordered all W-CDMA trial networks to shut down in order to give TD-SCDMA a leg up. China's telecom regulator has selected China Mobile, China Telecom and China Netcom to build TD-SCDMA pre-commercial networks. We could see some pretty thorny IPR issues that may involve WTO action.

For more information about TD-SCDMA and patent issues:
- check out this article from The Register
- read this article from TelecomDirect News

Rumor Mill: China Telecom blocks Skype

Thu, 08 Sep 2005 20:01:35 -0400

Reports claim China Telecom is blocking its customers' access to Skype. Insiders claim that China Telecom sees Skype as a threat to its long-distance revenue. China's largest carrier supposedly put Skype users on a "black list," blocked their access to the service, and threatened to fine anyone who attempted to regain access.

For more on China Telecom and Skype:
- check out this article from AFX News