MANHASSET, N.Y. A national TD-SCDMA network will be built in China eventually, but Chinese operators do have concerns about the technology, according to a report by ABI Research.
The report, "TD-SCDMA: The Chinese 3G Standard," by ABI's Asia analyst Junmei He, analyzes the TD-SCDMA industry chain from wireless operators and equipment vendors to handset and chipset vendors.
He noted that while the last TD-SCDMA field trial was not successful, the commercialization capability of TD-SCDMA has improved significantly since mid-2004.
"We expect production of TD-SCDMA equipment to start in mid-2005," said He. "Chipsets in the third quarter of 2005, and handsets in the fourth quarter. 3G licenses should be issued in the third quarter."
Compared to a standalone TD-SCDMA network, a mixed WCDMA/TD-SCDMA network creates many problems for operators in establishing efficient business modes, the report noted. The industry chain of mixed networks is not as developed as that for pure networks.
The report expects the TD-SCDMA network to be established initially in urban areas, with the GSM network complementing TD-SCDMA for nationwide coverage.
If they choose TD-SCDMA, China Telecom and China Netcom will initially focus on signing more voice subscribers to the network, and they will have strong policy support from the Chinese government. These favorable policies will be more important in attracting subscribers than service quality, according to the report.