The government has promised it will let the market dictate long-awaited third generation (3G) wireless communication standards and the timeframe for issuing 3G licences.

"We believe that the 3G technology promotion, at the end of the day, depends on the maturity of the technology and the development of the market for us to make a decision," said the Information Industry Minister Wang Xudong at the FORTUNE Global Forum, which concluded yesterday in Beijing.

The government is currently conducting field tests of all three 3G standards - the homegrown TD-SCDMA (Time Division Synchronous Code Division Multiple Access), European-based WCDMA (Wideband CDMA) and United States Qualcomm-based CDMA2000. The test results, according to earlier media reports, should have been released last month.

"The TD-SCDMA technology is indeed an international standard, which has obtained enormous support worldwide," said Wang.

The TD-SCDMA system is scheduled to be commercially launched in June, while CDMA2000 and WCDMA are already well established and growing, so far registering a total of more than 156 million subscribers, and are used by 125 operators in 56 countries and regions.

The minister refused to say when 3G licences will be issued or which standard China will adopt, only saying that 3G will be launched at the "proper time."

"As we promised before, the 3G technologies will definitely be used before 2008, when Beijing hosts the Olympic Games," Wang said. "But concerning the specific timetable, it is up to your understanding."

A spate of media reports once speculated that the government would issue 3G licences in the second half of this year. However, the ministry quickly dismissed the rumour as "groundless."

Edward Tian, vice-chairman of the country's second-largest fixed-line operator, China Netcom, said he is quite confident his firm will be able to secure a licence because his company has been highly successful.

"We are very confident on the 3G as our Hong Kong-listed company has abundant cash flow, many options for fund-raising and strong support from our parent company," Tian added.

(China Daily May 19, 2005)