3G Technology
The term 3G stands for the third-generation of mobile phones, providing a range of new functionality. Until now, mobile phones were primarily used to carry voice messages, with only some SMS text storage. 3G technology now allows the simultaneous transfer of speech, data, text, pictures, audio, and video. It also provides high-speed Internet access, entertainment, videoconferencing, mobile shopping, and travel information.
Many countries worldwide are preparing to transition from 2G (CDMA, TDMA, or GSM) to 3G technology (CDMA2000, UMTS, or TDSCMA). Depending on a region’s current technology, mobile operators could be expected to upgrade to some interim 2.5G technology (GPRS or EDGE) before moving to 3G; in many cases, a move from 2G to 3G would involve steep license costs and be complicated by a lack of demand and available applications. Chinese administrators are evaluating a number of options, including TD-SCDMA, Qualcomm’s CDMA, and the Japanese- and Europe-backed WCDMA standard. In China, mobile operators are largely (70%) state-owned enterprises with close affiliations with the Chinese government. China Mobile operates a GSM network, and Unicom operates both GSM and CDMA communications. China’s government recently allocated two 55MHz blocks of the 3G radio frequency spectrum to TDSCDMA but only one block of 60MHz to each of the other two 3G standards. This may indicate the government favors that homegrown standard. Europe has favored the WCDMA standard, while the U.S. prefers Qualcomm’s CDMA2000. China does not want to repeat mistakes made by European telecom regulators with the 3G license bidding process. As a result, the Chinese government has been cautious in 3G licenses and standards because it views 3G technology as not mature enough for a decision on 3G standards.
China’s 863 Program includes research and investment intended to go beyond 3G. The country made a strategic decision to involve itself in the early stages of 4G development, enabling participation in the standard-setting process and in global telecommunications competition. Although application of 4G is scheduled for 2010, preparations began in 2000, and in November 2001 the government formally approved the 4G development initiatives.
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