Chinese government issues 3G licenses

Chinese government issues 3G licenses

Chinese government issues 3G licenses

Comments Off on Chinese government issues 3G licenses

Chinese government issues 3G licenses

 

January 2, 2017

China’s biggest fixed-line provider, China Telecom, has seen its share price soar following a statement from the government that it would start issuing licenses for 3G networks.

 

China Telecom said the issue of 3G licenses will enable it to provide more premium services, and will be beneficial to the company’s long term development.

 

The company’s share price gained 6.2% following the announcement.

 

China Mobile, the biggest wireless communications provider in the world, also saw its share price jump, by 4.4%, following the announcement.

 

Telecoms companies in China are expected to spend over $40 billion installing 3G networks across the country, according to government officials.

 

China Telecom will be given a CDMA2000 license, whilst China Mobile will receive a permit to operate time-division synchronous (TD-S) CDMA.

 

Competition to win 3G subscribers will be fierce, said analysts, meaning the only sure winners from the 3G license issuing will be 3G equipment manufacturers.

 

 

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