On Mar. 27, 2007, Dr. Chen Haofei, Secretary-general of TD-SCDMA Forum attended the Sixth International Mobile Communication Industry Forum and Exhibition and was invited to present in the 3G Venture Capital Investment Forum on Influence of TD Development on the Capex of China Telecom Industry.

In his speech, Dr. Chen said, “the development and arrangement of TD-SCDMA will impact directly the competitive landscape in the telecom industry and the development of the domestic value chain. At the same time, changes in the industry landscape will also influence, either positively or negatively, the development of TD-SCDMA.

China Mobile is now inviting equipment providers to bid for its TD-SCDMA procurement. The network deployment in10 cities will further foster the matureness of the value chain of TD industry. ‘China Mobile’s first round 26.7 bn RMB investment on TD-SCDMA is decent,’ Chen said.

“TD construction should be extended and deepened in stages. The undergoing network construction in 10 provinces will accelerate the healthy development of the value chain and avoid cut-throat competition or repeated investment in 3G era.” He also added, “TD-SCDMA need an environment with as less distraction as possible”.

“In CM’s recent GSM capacity expansion, domestic vendors ZTE and Huawei grabbed over 90% of the total. This would be happening if China had adopted 3G years ago. The evolution speed significantly impacts the development of domestic value chain”, he said. “Nearly all sectors in TD industry supply chain are now dominated by domestic enterprises, which will benefit from the first-round TD procurement.”

When talked about investment opportunities TD brought in its value chain, Dr. Chen said, ‘TD brings opportunities to investors. Although it will be difficult for foreign investors to invest in TD by themselves, as domestic telecom organizations need capital injections, joint venture could be the most realistic solution for both sides. Strategic investors and other kind of international partnership also have larger potential in this field.”