China Mobile is upping the ante in its fight for consumers, launching a joint research program to develop handsets for its TD-SCDMA standard, China's own technology. The move is seen as a key step by China Mobile in the fight for the dominant position in the country's 3G market.

This is a strategic move for China Mobile in the 3G race.

The shortage of handsets supporting the technology is a major hurdle for the company in developing the 3G market.

Now, with a joint research program, China Mobile has lined up nine handset makers and three chip developers in its TD-SCDMA campaign.

Lu Xiangdong, Deputy President of China Mobile said "The program aims to provide more TD handsets in market that consumers will like to use."

China's 3 main carriers are all gearing up for the race, pouring in huge investments.

Li Yizhong, Minister of Industry & Info. Tech. said "Total investment in 2009-2011 will be 400 billion yuan. The issuance of 3G licenses, especially TD-SCDMA, will play an ever-bigger role in coping with the financial crisis and driving economic growth."

Experts estimate that 3G will spur one trillion yuan of investment in related industries over the next two to three years.

(CCTV May 18, 2009)