China's State Council approves 3G license issue

China last week approved long-awaited licenses for 3G mobile networks, a move expected to trigger investment levels of about US$41 billion over the next two years. The country's State Council, its highest government body, gave the Ministry of Industry and Information Technology (MIIT) the go-ahead to distribute 3G licenses, which are expected to be awarded in the next few weeks. Although the announcement did not specify which companies would receive licenses, it is widely expected that market-leader China Mobile will be assigned the Chinese-developed TD-SCDMA standard, whilst global 3G standards WCDMA and CDMA2000 1xEV-DO will go to China Unicom and China Telecom, respectively. Last week it was reported that China Mobile has agreed to lease the TD-SCDMA network being built by its parent, China Mobile Communications (CMCC), and will pay a maximum of CNY1 billion (US$146 million) during 2009.  

Lisa