Thursday, October 14, 2010

Xi Guohua, vice minister of MII: China's 3G licenses around four factors

Yesterday conducted the work of China Telecom Group meeting in 2007, despite the Ministry of Information Industry Xi Guohua, Vice Minister again stressed the "3G licenses being issued when the study, no conclusion." But he has further pointed out that China 3G licenses payment depends on four factors:

First, products, technology, business maturity.

And Xi pointed out that TD-SCDMA has been basically mature.

Second, the competitive landscape of the optimization. Xi Guohua clear that China's current telecom market is facing a serious imbalance in the competitive landscape. China Mobile, a single large, thriving new business telecom operation this year, revenues and profits in China Mobile accounted for 70% -80%. In contrast with China Mobile is growing more difficult for fixed network operators.

"We have recognized that mobile business license issued less. China Mobile and China Unicom unequal strength, not form effective competition." Xi Guohua said yesterday, Ministry of Information Industry is stepping up research, how to adjust regulatory policies, such as issuing 3G mobile licenses, the implementation of all business operations to reverse this pattern, it is necessary to prevent duplication, but also to compete effectively.

The third is the intellectual property rights. Xi Guohua stressed, 3G-standard intellectual property fees must be reasonable, too easy to create a monopoly, would lead to the results of human civilization will hinder the application.

Fourth is the need to fully support TD-SCDMA. Xi Guohua said the Ministry of Information Industry is doing a recent evaluation report, the basic view that "TD-SCDMA basic conditions for the commercialization": The testing results show the core TD-SCDMA has independent intellectual property rights standards and technology, is feasible in principle, can set a large network, although there are still some problems, but the construction and application in the future can be resolved gradually. For the follow-up TD-SCDMA development, Xi said, "The industry is developing technology evolution roadmap."

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