BEIJING-Zhang Fan, head of mobile communications at China Unicom, this week said his company would definitely build narrowband networks based on the CDMA standard.
After Qualcomm Chairman Irwin Jacobs recently met Chinese Premier Zhu Rongji and China Unicom Chairman Yang Xianzu in Beijing, China’s second mobile operator decided to go ahead with the building of a CDMA network. In June, the company had still ruled out using narrowband CDMA, opting to wait for third-generation technology.
On 16 October, Zhongxing Telecom and Qualcomm unveiled a CDMA prototype handset. Domestic equipment makers have invested several hundred million U.S. dollars in the standard. The groups announced what they called the world’s first CDMA-GSM interoperable Subscriber Identity Module (SIM) card and compatible handsets during a joint press conference comprising China Unicom, Zhongxing Telecom, Gemplus and the CDMA Development Group.
Zhongxing Telecom is a Chinese telecom equipment manufacturer, and ZTE FutureTel in Korea developed the CDMA SIM-compatible handset. The GemXplore World SIM card from Gemplus is designed for use in CDMA and GSM networks.
“Our decision to deploy CDMA technology enables us to provide mobility according to the true definition of the word-ability to move freely without boundaries,” said Fan.
China Unicom will invite tenders in November to build a 10 million subscriber CDMA mobile-phone network. Construction will begin early next year. The project’s worth is estimated at about US$2 billion.
Qualcomm’s share price surged more than 10 percent on the news, but shares of China Unicom’s listed subsidiary fell on the Hong Kong stock market amid fears the rollout would be too expensive.
Industry insiders said a new subsidiary will be created under the parent company to build and exploit the network, not burdening China Unicom’s listed arm. The new company would also acquire four trial CDMA networks previously operated by a joint venture between China Mobile and the People’s Liberation Army.
