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China Allocates 3G Spectrum

Shanghai Securities News, 1/20/09

Chinese national authorities have allocated 3G spectrum to China's three major telecom operators. China Telecom (NYSE: CHA; 0728.HK) has received spectrum between 1920-1935MHz and 2110-2125MHz, China Unicom (NYSE: CHU; 0762.HK; 600050.SH) has 1940-1955MHZ and 2130-2145MHz, and China Mobile (NYSE: CHL; 0941.HK) has 1880-1900MHz and 2010-2025MHz for its TDD (Time Division Duplexing) implementation, TD-SCDMA.

According to international telecommunications guidelines, 1880-1920MHz and 2010-2025MHz are meant for TDD service, and in China, some frequencies in that range have been allocated to PHS since 2002. China Telecom has turned over the PHS 1880-1900MHz range, however it needs to wait for its "PHS User Migration Program" to be confirmed before handing back the 1900-1920MHz range.

According to an informed source, 3G spectrum useage fees will be determined jointly by the Ministry of Industry and Information Technology (MIIT) and the Chinese National Development and Reform Commission (NDRC). The 3 telecom operators will not have to pay 3G license fees, but only a small, yet-to-be-determined usage fee.

Keywords: China Telecom CHA 0728.HK China Mobile CHL 0941.HK China Unicom CHU 0762.HK 600050.SH 3G MIIT NDRC PHS spectrum TD-SCDMA TDD wireless


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