China Mobile Details TD-SCDMA Network Expansion

China Communications, 8/25/08

An industry source has revealed that China Mobile (NYSE: CHL; 0941.HK) has already settled on 28 cities for the second stage of its TD-SCDMA network expansion, covering 26 provincial capitals and municipalities, and 2 non-capital cities. The cities include: Shijiazhuang, Taiyuan, Hohhot, Changchun, Harbin, Nanjing, Hangzhou, Hefei, Fuzhou, Nanchang, Jinan, Zhengzhou, Wuhan, Changsha, Nanning, Haikou, Chongqing, Chengdu, Guiyang, Kunming, Lhasa, Xi'an, Lanzhou, Xining, Yinchuan, and Urumqi, with the remaining two non-capital cities being Ningbo and Dalian.

The source also revealed that Nanjing began construction work on its TD-SCDMA network two weeks ago, and expects to finish the network in 2-3 months. Changsha has already deployed a portion of its TD-SCDMA base stations and is beginning internal testing, and Hangzhou has also already begun development work.

He Tingrun at the National Research Institute of Radio Spectrum Management predicts China Mobile's second stage of TD-SCDMA construction will require more than RMB 30 bln in investment, including RMB 18.3 bln for base stations, RMB 2.61 bln for core networks, 2.09 bln for transmission networks, RMB 1.83 bln for support networks and RMB 1.31 bln for business networks. The company may deploy as many as 26,762 TD-SCDMA base stations.

Editor's Note: China Mobile president Wang Jianzhou revealed in June that so far China Mobile has invested RMB 15 bln on TD-SCDMA networks and built 14,688 base stations. For more background on the progress China Mobile has made in TD-SCDMA network construction, please see "China Mobile TD-SCDMA Base Stations to Reach 18,000", MD 6/27/08 issue.

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