China finally issued licenses for next generation, or 3G, mobile networks to its 3 state-run providers this week. The long-awaited issuance of the licenses has met with mixed reactions from industry, experts, and of course, ordinary consumers.

The issuance of the 3G licenses marks the standardization of TD-SCDMA technology, the first such standard developed in China. In fact, the technology has already started trial operations in major cities and was tested during the Beijing Olympics. Now with the release of 3G licenses, it's time to roll out the service nationwide.

Wang Jianzhou, President of China Mobile said "After the operational tests and trials, the TD-SCDMA technology has gradually matured, both in terms of its network and mobile phone terminals."

The TD-SCDMA system was developed by Datang Telecom Technology, to lower the costs of Chinese mobile operators entering the 3G market. Now it has been adopted as one of the three global standards for 3G technologies, along with WCDMA and CDMA-2000.

Yang Hua, Secretary-General of TD-SCDMA Industry Alliance said "Only those who utilize the new standard will be able to participate in subsequent technology and market development. Mobile communications will not only contribute to the whole nation's economy, but also help increase both companies' overall competitiveness."

Against the backdrop of the economic slowdown, the Chinese government sees the development of 3G networks as an important step in boosting domestic demand. It's estimated direct investment in construction of 3G mobile networks will reach 280 billion yuan in the next two years. And network development will lead to 2-trillion yuan in private-sector investment over two or three years.

(CCTV January 12, 2009)