Rumor: TD-SCDMA Numbers to Be Issued This Week

Oriental Morning Post, 3/24/08

An inside source at China Mobile (NYSE: CHL; 0941.HK) has revealed that issuing of TD-SCDMA numbers is about to commence, and that once the China Mobile Group confirms the specific date of issue, it will begin to assign numbers at points of sale, with the initial date very likely to be some time this week.

In Tianjin, some 2,000 TD-SCDMA handsets are ready to go on sale, with still more TD-SCDMA handsets in Shanghai -- 2,000 being provided by ZTE (0763.HK; 000063.SZ) alone. China Mobile has already prepared newspaper advertisements to run in papers in Beijing, Shanghai, Tianjin, and five other major cities. To minimize the inherent risk in pre-release marketing for TD-SCDMA, China Mobile had intended to hand the marketing responsibility to a non-listed subsidiary. However, the subsidiary has yet to be granted an operations license, and the China Mobile Group is currently engaged in talks with the relevant departments in order to begin operations before receiving a license to operate TD-SCDMA.

A source at one TD-SCDMA handset manufacturer said that the number of China Mobile VIP customers has decreased, and that the majority of TD-SCDMA handsets will be issued to regular users.

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