Mobile phone charges are expected to be slashed dramatically in the lead up to January's Chinese Spring Festival, according to a Beijing Mobile Telecommunications Co Ltd official.

A promotional agent shows a third-generation mobile phone to visitors at the PT/Wireless and Networks Comm China 2003, the biggest telecom exhibition in Asia this year, at the China International Exhibition Centre in Beijing. The fair lasts until Sunday with 400 exhibitors from 21 countries and regions. [newsphoto.com.cn]

Fan Yunjun, Marketing Department general manager of Beijing Mobile, said if introduced, the price cuts would be "unprecedented."

"The cuts... would mainly focus on voice businesses including calling-in and dialing-out," he said Wednesday during the ongoing PT/Wireless and Networks Comm China 2003 in Beijing.

However, there is a possibility that prices will not be reduced, he added.

Analysts believe the strategy is being developed by the company to fight its rival, China Unicom and its recent CDMA network price reductions.

When asked about its third-generation (3G) wireless telecommunications, Fan said: "We need to nurture a pool of 3G customers before the real roll out of 3G's commercialization."

According to Fan, the company is busy testing its 3G-based technologies, networks and services.

"We expect that the 3G licences will likely be issued later next year," he said.

His view is echoed by Peter Weiss, executive vice-president of Siemens Ltd (China).

As the only 3G solution provider backing both Wideband CDMA and Time Division Synchronous CDMA standards, Weiss said the two 3G standards were "both mature in status."

Also yesterday at the expo, Germany-based Siemens demonstrated a new 3G mobile terminal, the U15.

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