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Chinese companies engaged in home-grown third-generation mobile communication technology TD-SCDMA are calling on the government to issue operation license as test of the technology is near complete.

 

A recent report carried by sohu.com said that the on-going test on TD-SCDMA revealed many problems and the technology is still immature. China's first 3G license scheduled to be issued this year might be put off till next year.

 

"The test is going on quite well and no serious problems occurred in the process," said a person close to the test at a forum on TD-SCDMA terminals and applications held in Hangzhou on July 7-8. He refused to tell more about the test but said it would be finished before October or no later than the end of the year.

 

The test of TD-SCDMA in real networks in five cities of China, which was scheduled to finish in the first half year, would partly decide China's 3G agenda. The industry had expected the government to issue the 3G license this year after the test.

 

"A new technology can not grow mature if not put into the market," said Zhao Yan, vice president with Koretide Corp. in Shanghai engaged in mobile operation system research based on TD-SCDMA.

 

"It would grow up quickly through self adjustment and international capital would flow in soon once the license is issued," said Zhao.

 

Wang Jing, secretary general of TD-SCDMA Forum, agreed and said that the government could not wait for the technology to be "problem-free".

 

One disadvantage of TD-SCDMA is lack of strong support from first-class international companies, which made the technology weaker in competition against the other two 3G standards. They are still waiting as the government has not made the 3G road map clear, said Wang.

 

TD-SCDMA has experienced many rounds of tests before and no vital defects exist, said Wang, whose TD-SCDMA Forum is an organization advocating the technology.

 

Wu Guohua, senior vice president of Holley Communications, said that the companies should have some idea when the technology can be put into large-scaled commercialization and no companies can make future plan with so many indefinite factors.

 

Zhao analyzed that the government, operators and venture capital are all worried whether TD-SCDMA would succeed, but it's impossible to find an absolutely positive answer before it is put into real operation.

 

"License delay may bring vital risks to companies engaged in TD-SCDMA and it's time to issue the license," said Zhao.

 

3G has been growing amid disputes in China. Some experts said it is not necessary for China to launch 3G as there is no strong market demand which can give rise to a powerful application.

 

Participants at the forum agreed that 3G has not yet powerful application and its greatest value lies in broad band and a platform available for many services.

 

3G network construction is like building an expressway, said Wang, adding that the industry will find opportunities of making money when the network is ready.

 

An expert who chose to remain anonymous said that 3G has become a must for China as it means life-and-death decision for many Chinese companies and also concerns the national strategy of innovation. Denial of 3G launch would give heavy blow to the national industry, said the expert.

 

(Xinhua News Agency July 10, 2006)