3G Market and Industry Chain in China, 2005

In 2004, there was a recovering tendency in 3G market, 3G industry step into the market startup period from the period of network construction. Vodafone started its 3G business in 13 countries as planned after HWL's (Hutchison Whampoa Limited) had made worldwide 3G extension. 3G businesses of Japanese and Korean operators are developing well and Europe working on 3G continuously. North European countries have started their 3G services one by one, and East Europe is in the initial stage of 3G license release and network construction. CDMA maintains a superior position in North America, and over 55% of CDMA subscribers are using CDMA2000. In Latin America, there are 52 operators of CDMA One and CDMA2000 in 19 countries. It is noteworthy that Africa also starts its 3G network construction; Mauritius, Tunis, and South Africa are pioneers of African 3G..

Up to the end of October 2004, world WCDMA and CDMA2000 subscribers exceeded 140 million. There are 113 3G networks for commercial use in 50 countries, including 68 CDMA2000 1X networks, 11 CDMA2000 1X EV-DO networks (9 operators have both CDMA2000 1X and EV-DO networks), and 43 WCDMA networks.

By January 2005, total WCDMA subscribers reached 16 million worldwide.

In terms of the number of subscribers, CDMA has far more subscribers than WCDMA at present. Up to October 2004, there were over 128 million CDMA2000 subscribers worldwide, including 10 million EV-DO users.

Terminal problems that caused the slow process of 3G had been resolved in the later half of 2004. By the end of November 2004, there were 104 WCDMA handsets (including wireless net card) being introduced, among which 90 were for commercial use. And there were 20 mobile phone manufacturers providing WCDMA handsets (wireless net card). With the increase of suppliers and terminal species, cost of WCDMA will be reduced gradually, the number of dual module GSM/CDMA handsets is increasing obviously; problems like switch between the networks, IOT testing, stand-by time, space and weight are all resolved excellently.

But in general, global 3G market is immature. European operators are cautious to start 3G businesses, both Orange and O2 delayed their commercial 3G business plan, German T-mobile never provided 3G business service for their mobile phone subscribers, but provided 3G wireless data cardsto offering3G experience to its high-end subscribers.

In 2005, the development of global 3G will be accelerated. Along with terminal problems resolved, European operators expanded 3G network coverage, and European 3G market will be accelerated obviously. American operators started 3G trials and network construction one after another after being given more frequency ranges. China will release 3G licenses in 2005, and will boost global 3G development.

3G remains to be the hotspot in global mobile communication industry in 2005. Based on a great number of internal data, online materials and practical investigation, and an in-depth research of the 3G industry chain, the report described and analyzed the whole 3G industry, including technology evolution, 3G subscriber survey, 3G business classifications, and global status of 3Gand situation in different regions.