July.30,2008 No.15
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China's mobile users top 600 million
According to MIIT, mobile users in China, the world's biggest cell phone market, now tops 600 million, as subscribers increasingly abandon fixed lines. Mobile phone users in the country reached 601 million at the end of June, up by 8.6 million from May, Total 53.5 million new cell phone users were registered during the 1st half of 2008.. By contrast, fixed-line subscribers fell by 9.3 million in the same period to 356 million.
¡ýWeekly News(7.18-7.24) ¡ýHot News ¡ýInternational
Guangdong Mobile TD-SCDMA users increased to 120,000
Guangdong Province has 14,000 TD-SCDMA users. And Guangdong Mobile plans to expand the users to 120,000. 4200 TD-SCDMA base stations are mainly located in Guangzhou, Shenzhen, and the Guangzhou-Shenzhen Railway and highway, and the amound will increase to around 5,200.

Round 2 TD-SCDMA terminal deliveries delayed to end of July
China-CBN news, TD-SCDMA terminal delivery is delayed to the end of this month. At the same time, according to news from China Mobile, due to time constraints, TD-SCDMA / CMMB terminal may not be able to serve the Olympics Games,

3G license released by year-end
At a recent press conference on Olympic communications and security, Xi Guohua, Vice Minister of MIIT, said that the 3G licenses will be issued after the operator restructuring, which may take about six months. This also means that the first 3G licenses may be issued by the end of this year or early next year. This is the first official timetable of 3G license.

TD-SCDMA entered into Europe Market
Chinese telecoms vendor Potevio has teamed up with Italy's Mywave Electronics to build a trial TD-SCDMA mobile phone network in Italy. Potevio will provide TD-SCDMA equipment to Mywave to build a trial network dedicated to serve corporate users.

Qualcomm and Nokia royalties fight ended in reconciliation
Nokia and Qualcomm suddenly agreed to settle their legal battles over intellectual property and royalties. The accord will have wide-ranging implications for both companies and the future of the mobile sector.
The two sides said they have agreed to drop all legal complaints against each other in the U.S., Europe, and Asia. The companies also struck a 15-year licensing deal that gives Nokia rights to a wide portfolio of Qualcomm patents, covering a wide range of different-generation mobile-phone standards. Nokia will pay Qualcomm an up-front sum and ongoing royalties, but the companies did not elaborate on terms.

Zou Dongqi, Director of Department of EMC test, China Telecommunication Technology Labs (CTTL)
The test results released by CTTL indicate that TD-SCDMA base station¡¯s radiation resistance is 10dB-20dB lower than that of GSM base station under the same conditions. All tests were conducted under full power. But in reality, the radiation will be even lower.

Zhou Shuangyang, Senior Engineering of China Netcom
Low radiation is an inherent advantage of TD-SCDMA base station. Under the same condition, Compared to other communication systems under the same condition, TD-SCDMA radiation should be lower by 10dB at least, so TD-SCDMA is more environment friendly than other systems.

Li Xinze, General Manager of Marketing Department from Guangdong Mobile
TD-SCDMA internet access data rate is as high as 1.55Mbps, as recently tested by Guangdong Mobile and Huawei. Guangdong users are expected to experience this high speed by next month. Within this year, TD-SCDMA will provide 2.8Mbps for internet access£®

News from Foreign Media

Nokia Chinese JV to Build 3G TD-SCDMA Network in Italy
cellular-news
Chinese telecoms vendor, Potevio has teamed up with Italy's Mywave Electronics to build a trial 3G network in Italy based on the Chinese developed TD-SCDMA standard. The official China Daily newspaper reported that the deal was signed last week and is for a trial network dedicated to serving corporate users.
Potevio is the brand name of a joint venture between Nokia (49%) and China Putian (51%) and was created in Oct 2005 to develop both TD-SCDMA and WCDMA network equipment.

Ericsson Wins HSPA Contract in Japan
cellular-news
Ericsson has signed a frame agreement with a leading Japanese operator, Softbank Mobile, to expand and upgrade its HSPA (High Speed Packet Access) network. With this contract, Ericsson will expand its business with Softbank by providing enhanced HSPA on new and existing base stations in the high traffic areas of Tokyo, Nagoya and Osaka.
The deal also includes an extension of the Ericsson circuit and packet switched networks, a field maintenance service and a full turnkey service for the rollout of new base stations. No financial details were provided.
US investors team up to bid for Huawei unit
Reuters
US private equity firms Silver Lake and Providence Equity Partners have teamed up to bid for a stake in a unit of China's Huawei Technologies, a Reuters report said. The Reuters report, citing sources involved in the process, also said the deal could fetch more than $2 billion. If priced at more than $2 billion, a Huawei deal would be the fifth largest cross-border inbound deal in China on record, and the largest so far this year, according to Thomson Reuters data. It would be the second largest private equity deal in China ever, after ICBC's acquisition by an investor group comprising Goldman Sachs, Allianz and American Express.
China Telecom mulls multi-billion domestic bond issue
telecomasia.net
China Telecom plans to issue up to 50 billion yuan ($7.3 billion) worth of bonds in the domestic market for business development, a Reuters report said.
The bonds would have a maturity of up to 10 years, China Telecom said in a statement.
The company will hold an extraordinary general meeting on September 5 in Beijing to seek shareholders' approval for a general mandate to issue up to 80 billion yuan ($11.7 billion) worth of debentures, including the 50 billion yuan ($7.3 billion) bond issue, from a previously approved 60 billion yuan ($8.7 billion).

ZTE's shares leap as investors anticipate 3G buying spree
telecomasia.net
Shares in ZTE rose over 9% as speculation grew that the country will soon allow carriers to begin building high-speed 3G networks, a Reuters report said.
Beijing in May unveiled a masterplan to remould its telecoms industry into three giant players and enable the construction of 3G networks, a spending boon for ZTE and other equipment manufacturers such as Huawei, the Reuters report said.
Other newspapers said China Telecom was about to expand a newly acquired CDMA network, a move Goldman Sachs reckoned could result in up to 4.2 billion yuan ($616 million) in contracts for ZTE in 2008.

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