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CDMA MAY ENTER CHINA AS GSM NETWORK FILLS UP

CDMA supporters are buzzing with the prospect of entry into China.

Wireless local loop trials have started and recent activities suggest China is interested in Code Division Multiple Access technology for cellular systems as well.

Arun Sarin, president and chief executive officer of AirTouch International and vice chairman of international businesses for AirTouch Communications, indicated China’s Global System for Mobile communications network is nearing capacity. The country has available CDMA spectrum and is likely to use it, he said.

Qualcomm Inc. spokeswoman Julie Cunningham reported China allocated 10 megahertz of spectrum in the 831 MHz to 834 MHz range, of which 3 megahertz is designated for CDMA. The Great Wall Co., a joint venture of the Chinese military and the telecom authority, is reviewing proposals for uses of the spectrum, Cunningham explained.

“We have been involved with China a long time,” said Cunningham. “Things don’t happen quickly.” Qualcomm, a CDMA technology developer and equipment manufacturer, is waiting for the go ahead to introduce CDMA service in China, she added.

GSM service has spread like wildfire through China since its introduction, and systems are in place in most provinces.

Yet unlike other regions of the world, the “Chinese are very open minded about technology,” explained Bernard Smedley, president and chief executive officer of AirNet Communications Corp. AirNet supplies base station technology throughout Asia. The country is willing to try any technology “particularly if the terms and conditions are right. If CDMA proves itself in terms of cost and coverage,” Smedley believes it could fare well in China.

Scott Wyman, director of public relations for Motorola Inc.’s Cellular Infrastructure Group, said China is looking into cellular projects with the company, and indicated more details would be announced in the near future.

Motorola formed a joint venture last spring with China Posts and Telecommunications Industry Corp. and Hangzhou Communications Equipment Factory of the Ministry of Posts and Telecommunications to form a CDMA cellular joint venture located in Hangzhou City.

Motorola said the Hangzhou business will produce and distribute CDMA equipment throughout China beginning at the end of this year.

In July, Motorola announced an agreement with the Shanghai Posts & Telecommunications Administration to trial Motorola’s CDMA-based wireless local loop system among residential and commercial users in Shanghai.

Motorola also is trialing a CDMA-based wireless local loop system in the Fujian province of China, with the PT authority.

Motorola said the MPT indicated wireless local loop systems are an essential element of its five year plan to install up to 14 million phone lines by 2000.

Cunningham said the Chinese Ministry of Posts and Telecommunications stated it aims to reach 8 percent teledensity by 2000, a large step to take from current teledensity of 2.3 percent, reported Cunningham.

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