Summary

Near term 3G plans of the carriers include: China Mobile now operates TD services in 10 cities, and plans to cover 38 cities in the middle of 2009. China Telecom has started spending its RMB 100 billion budget for 3G business, and China Unicom just concluded CDMA bidding in 342 cities.

Analysis

The Chinese government will continue to formulate new policies to TD-SCDMA, such as adding TD-SCDMA technology to the government procurement catalog, and acknowledging it as a high -tech special project in the next 15 years to enjoy fund support and tax rebates.

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