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The authorities' timing is everything when it comes to granting third-generation (3G) wireless telecommunication licences, allowing large 3G mobile phone commercial applications to crank up.

And it is an issue not lost on major players who are becoming impatient and who seemingly cannot wait any longer.

Peter Weiss, general manager of the Siemens (China) Information and Communication Group, told China Daily: "I expect the 3G licence launch to happen at the earliest by the end of this year and in the first half of next year at the latest.

"The industry will need some time to know which way to go. We need a lead time to be right on track - to set up manufacturing infrastructure and to roll out equipment."

He said if licences are not issued until the end of next year, Siemens will definitely loose its steam of 3G-related investment as there will be no new networks. The existing networks will be congested.

"But I am in the firm belief that the authorities will come out with the 3G decision next year and I also strongly believe that new groups will get involved," Weiss added.

However, there were, after a government-led delegation visited Europe recently, some strong opposition from both the government telecom watchdog and experts, saying it is still too early for China to grant 3G licences before the middle of next year and the country should wait until Europe succeeds in its 3G development.

"Well, it is a big debate. But I think China is and will even be a more fledgling telecom market," Weiss said.

"If we claim that China is such a market, we cannot afford to wait too long for new technology (and it) should take over a lead role in the formation and development of 3G telecom globally."

The German manager added that if he had been confronted with the same question one year ago, his answer would have been different.

"One year ago, we were still witnessing tremendous roll outs in GSM (global systems for mobile communications). But now we have established a very good GSM basis and we are ready to take another step forward."

Siemens supports both WCDMA (wide code division multiple access) 3G standard, which is prevailing in Europe, and TD-SCDMA (time division synchronous CDMA), another internationally recognized 3G standard developed by the Datang Telecom Technology and Industry Group of China.

Echoing Weiss' opinion, some Chinese experts also agree that 3G mobile communication licences should be issued by early next year to create a favourable environment for the development of the industry.

(China Daily 06/28/2003 page3)

         
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