China 3G licensing delayed again

China will not issue 3G mobile telephony licenses until late 2006 or 2007, Chinese media reported Thursday.

Analyst estimates of when the licenses will be issued now range from October or November 2006 to early 2007.

China's Ministry of Information Industry, the nation's telecom regulator, has never released a timetable for 3G licensing or rollout or said how many licenses it will issue, though industry participants generally believe the ministry will offer six licenses. Foreign carriers will not be allowed to apply for licenses.

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China will not issue 3G mobile telephony licenses until late 2006 or 2007, Chinese media reported Thursday.

Analyst estimates of when the licenses will be issued now range from October or November 2006 to early 2007.

China's Ministry of Information Industry, the nation's telecom regulator, has never released a timetable for 3G licensing or rollout or said how many licenses it will issue, though industry participants generally believe the ministry will offer six licenses. Foreign carriers will not be allowed to apply for licenses.

Chinese officials and industry executives have stated they want 3G in place in time for the August 2008 Olympic Games to be held in Beijing.

Li Yanfeng, an analyst with Beijing-based CCID Consulting Co., which has ties to the ministry, said the licenses will likely be issued in early 2007, which would still give operators time to deploy the necessary equipment and launch services.

But another technology consulting firm, Norson (Hong Kong) Information Technology, said that licenses will be issued in October or November, the Xinhua News Agency reported. Norson representatives could not be reached for comment.

The unclear timetable seems to have caught industry heads off-guard. The chairman of China Telecom said Wednesday that telecom regulators would issue the licenses "soon," according to the official China Daily newspaper, though he was not more specific.

Wang Xiaochu said his company will use China's homegrown TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) standard and could roll out services seven to eight months after receiving a license, the Xinhua News Agency reported.

At present China Telecom cannot offer mobile services as part of its telecom license. China Mobile and China Unicom are the only two carriers authorized to provide mobile services in China.

The IDG News Service is a Network World affiliate.