China Telecom Corp., Ltd. (CHA)

[*MARINE 1*]

China says $41 bln to be spent on 3G over 2 yrs




BEIJING, Dec 19 (Reuters) - Chinese telecom operators will spend about $41
billion on next generation (3G) mobile networks over the next two years, the
government said on Friday.
In addition, China will support the development of core microchips,
terminals and testing equipment as it expands network coverage, Minister of
Industry and Information Technology Li Yizhong was quoted on the ministry's
website as saying.
Li said last week that at least $29.2 billion would be spent on 3G next
year alone, while long-awaited licences would be awarded by early next year.
Beijing is developing its own TD-SCDMA 3G standard to promote domestic
industries and technology and to avoid the hefty royalties demanded by foreign
companies that own the rights to the technologies that are commonly used around
the world, WCDMA and CDMA 2000.
China Mobile will get a licence for TD-SCDMA, Li said last week.
In addition, China Unicom will operate a WCDMA network, while China
Telecom will get a licence for CDMA 2000 technology.
The new technology handles faster data downloads, allowing cell phone
users to make video calls and watch TV programmes.
($=6.83 yuan)
(Reporting by Kirby Chien; Editing by Nick Macfie) Keywords: TELCO CHINA/
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