China Set to Fund Domestic 3G Standard

The government is expected to invest 1.4 billion yuan (US$168.7 million) to aid the development of a homegrown standard for 3G mobile communications, according to industry insiders. Industry analysts say the new financing, along with a recent government decision to delay issuing 3G licenses to 2005, shows Beijing is determined to support a domestic standard rather than relying on foreign technology.

The new investment, which will be the second round of government funding for a group of eight Chinese companies, is expected to be announced this week at a telecom expo in Beijing. “The National Development and Reform Commission, the Ministry of Science and Technology and the Ministry of Information Industry have a project to invest 1.4 billion yuan more into our TD-SCDMA Industry Group soon,” said Qu Guangfeng, an engineer at Datang Mobile Communications Equipment Co Ltd. Government officials were not available to discuss the new investment yesterday, but CCID Consulting Co Ltd, a Beijing-based consulting company close to the Ministry of Information Industry, confirmed the capital infusion will take place. Continue >>