China 3G Market Can Still Be Huge Opportunity

Next Generation Communications Blog

China 3G Market Can Still Be Huge Opportunity

In a recent AP item, reports of a highly politicized "scramble" by telecom equipment manufacturers for their piece of a potential $41 billion pie, were set in motion by China's move to roll out third-generation or 3G mobile phone services.
 
According to the AP report:
 
Chinese sales could be crucial for suppliers such as Motorola Inc., Alcatel-Lucent SA and Nokia-Siemens Networks as global demand slumps.
 
The report cites state-run media claims that China Mobile (which together with China Unicom dominates the mobile operator landscape) is looking to sign up 100 million 3G subscribers in the next three years.
 
It remains to be seen if foreign-owned companies will get a fair shake at the business. The AP report said that it's possible that Chinese regulators may
 
...try to boost China's high-tech industry by ordering wireless carriers to buy domestic products. Beijing has tried to use such restrictions to nurture other fields, prompting complaints by the United States and other trading partners.
 
China's leading domestic suppliers are Huawei Technologies Ltd. and ZTE Ltd.
 
Duncan Clark, chairman of BDA China Ltd., a Beijing consulting firm was quoted in the report as saying that foreigners might only be in line for less than half of China's 3G orders.
 
Given the size of the market, an opportunity to provide equipment to serve even half the potential customers might not be such a bad thing after all.


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