China today issued 4G licences to three state-run Chinese telecom operators, marking the beginning of a new era in the country’s high-speed mobile network employing homegrown technology.
China’s Ministry of Industry and Information Technology (MIIT) issued permits to offer fourth-generation (4G) mobile
network services employing homegrown TD-LTE technology to China Mobile, China Telecom and China Unicom.
The ministry said the three companies have conducted large-scale tests of TD-LTE, or Time-Division Long-Term
Evolution, one of two international standards, and their technology is ready for commercial service.
Zhang Feng, the MIIT’s spokesman, said 4G technology will lower bandwidth costs and promise faster mobile broadband.
The ministry’s figures showed that the Internet speed of 4G networks is 10 times that of 3G services, and allows mobile users to download a 7-megabyte music file in less than one second, state-run Xinhua news agency reported.
China Mobile said the rates for 4G services will be cheaper than those for 3G.
In some cities where the company has launched the 4G network for trial commercial use, the tariff is 20 per cent
less than similar 3G network plans.
Li Yue, president of China Mobile, said the price of 4G smartphones will go down quickly following the approval of the
4G network for commercial use.
Only some smartphone models in China are equipped with modules that support home-grown 4G TD-LTE technology, with
their prices ranging from USD 350 to USD 800.
Li said 4G terminals for as little as USD 150 will be available on the market by the end of this year.
The commercial introduction of the 3G network generated nearly four million jobs and 2.7 trillion yuan (USD 443
billion) in investments over the three years from 2009, the ministry said.
The MIIT also said today it will test a converged TD-LTE/LTE FDD network at a later date.
China is the major promoter of the TD-LTE standard and is also a major owner of the standard’s core patents.
LTE FDD is the other international 4G standard and is popular in Europe.
“China will issue licenses for LTE FDD when the condition is ripe,” said the ministry.
Experts believe the commercialisation of TD-LTE will create a new impetus for China’s economic growth, as the
country is home to the largest number of mobile phone users in the world.
The ministry’s statistics showed that the 3G network contributed 211 billion yuan (USD 34 billion) to China’s GDP
in its first three years of commercial use.
“The 4G industry chain, which involves terminal manufacturing and the software sector, will further improve
the services of China’s telecom sector,” Zhang Fen, a MIIT spokesperson, said.
—————————-PTI