The nation's two mobile phone giants, China Mobile and China Unicom, reaffirmed yesterday they will keep a close eye on the development of the three types of third generation (3G) wireless technologies in order to work out sound market strategies.

The message was delivered yesterday at the ongoing Fourth China 3G/IMT-2000 Mobile Networks 2003 in Beijing.

The three 3G standards include the European-based WCDMA (wideband code division multiple access), the US-based CDMA2000 and China's homegrown TD-SCDMA (time division synchronous code division multiple access).

"We will actively promote the standardization of the three standards, formulate 3G network business strategy and gradually transform 2G/2.5G services into 3G services," said Zhang Zhijiang, China Unicom Technical Department general manager.

"Our strategy is to develop our two existing networks - CDMA and GSM (global system for communications) - in harmony," he stressed.

It is widely acknowledged that China Unicom's 3G network will be based on CDMA2000.

Figures from China Unicom indicate that it has 15 million CDMA subscribers and 70 million GSM users.

For GSM subscribers, the company announced last Wednesday the successful completion of the first phase of a comprehensive GSM1x technology trial in co-operation with QUALCOMM Inc.

GSM1x is a deployment option allowing GSM carriers to deliver efficient CDMA2000 1X voice, data and enhanced services utilizing commercial CDMA2000 radio infrastructure equipment while preserving their GSM SIM distribution model, authentication, roaming and GSM back-office systems and processes. The enhanced CDMA2000 1X services include the BREW platform, gpsOne position location and high-speed data access.

"We will also keep a eye on TD-SCDMA," he said.

Yang Zhiqiang, deputy general manager of the Technical Department of China Mobile, said as the whole market is not ready for 3G in China, China Mobile will also watch carefully on the development of the three standards.

"We believe WCDMA will be the best 3G technology standard form GSM as it enables smooth network migration and support 3G services at the lowest cost through scale efficiency," she said.

"TD-SCDMA will be a great complement to WCDMA along with the abundant mobile data services rolling out."

"But the commercialization of homegrown standards still needs some time as far as technology, terminal products are concerned," Zhang said.

"We should see a synchronization between the technologies and market," said Xi Guohua, vice-minister of Information Industry.

Attracted by the huge market potential, Gao Yan, senior vice-president of Siemens (China) Mobile, told China Daily yesterday on the sidelines of the event that the company is going to enhance 3G research and development in China.

According to Lin Jinquan, chairman of the China Institute of Communications, the real commercialization of 3G stills needs one to two years to come.

(HK Edition 09/23/2003 page7)