Qualcomm Inc, the world leader in code division multiple access (CDMA) digital wireless technology, reaffirmed it will support all three third generation (3G) mobile telecommunications standards to tap potential market demand in China.

"It is an inadequate question of whether 3G technologies have matured or not. Instead, it is a question of what is the development trend for 3G and what is the right model for 3G development in China," said Wang Jing, senior vice-president and chairman of Qualcomm Greater China.

Qualcomm dominates CDMA 2000, one of the three world recognized 3G standards. The other two include the European-based WCDMA (Wideband CDMA) and Chinese TD-SCDMA (Time Division Synchronous CDMA).

"Starting next year, 3G will see explosive development worldwide rather than being confined to certain regions," he said.

Currently, CDMA 2000 and WCDMA are well established and growing, registering a total of more than 140 million subscribers so far and are operated by 113 operators in 50 countries and regions worldwide.

He said he believes WCDMA, for example, is likely to sign up around 50 million new subscribers next year.

"As for TD-SCDMA, we support the standard and are keeping a close eye on the development of the technology," Wang said.

Besides the migration from voice to data, 3G will be characterized by enhanced application of value-added telecoms services next year, he said.

Nowadays, the content and service markets are mainly dominated by ringback tones, and colourful handset desktops.

In the near future, content will likely be focused more on video, music and games.

According to Yankee Group, the combination of location and mobility with audio, camera, video and gaming abilities, as a result of converging multimedia and mobility, will accrue about 600 million multi-media users in 2006.

The deployment of 3G networks around the world, leading to the migration from voice to data, will drive up data users to reach more than 1 billion in 2007.

Figures from Strategy Analytics said by 2009, wireless users worldwide will spend more than US$90 billion on data content.

A data-centric system drives broad market demand and increases sales for telecoms operators.

3G will enhance the ARPU (average revenue per user) for telecoms operators, he said.

"It has become vital for telecoms operators to become internationalized while embracing 3G," he said.

He said he believes though uncertainty is one of the distinguished characteristics in the Chinese market at the moment as there is no clear timetable from the Chinese Government to roll out its 3G strategies, the market potential in China is overwhelming.

"We choose to work closely with our partners in the Chinese market, including telecoms operators and equipment providers to speed up 3G development in China," he said.

Qualcomm so far has signed partnerships with many domestic telecoms equipment makers such as Huawei Technologies, ZTE, Lenovo, Bird and TCL.

Early this month, Huawei Technologies, China's largest telecoms equipment vendor, made the first North American launch of its CDMA2000 1X wireless network.

"Huawei's entry into the US market demonstrates the expanding capabilities of the Chinese telecoms equipment industry and the vitality of CDMA2000 1X technology around the globe," Wang said.

Huawei Technologies also clinched its first European contract for a 3G mobile network for Dutch carrier Telfort.

Huawei has contracts for networks based on the WCDMA standard in the Middle East, Hong Kong, Mauritius and Malaysia.

"It is appropriate for Chinese telecoms equipment providers to roll out development in overseas markets as there is still no clear scenario when the Chinese Government will kick off its 3G licence," Wang said.

He said 3G should actually provide a very good chance for domestic telecoms equipment providers to catch up with world renowned counterparts.

(China Daily December 20, 2004)