China Unicom's CDMA Wireless Network Nearing Completion
October 16, 2001 (BEIJING) -- Construction of China's first code division multiple access
(CDMA) network is expected to be completed by the end of October, with trial
operation starting as early as the end of this year, according to China Unicom.
After two months of equipment and operation testing, trial operation will begin, said Lu
Jianguo, vice-president of China Unicom.
The kick-off will most likely take place between New Year's Day and the Spring Festival
(Feb. 12), he added. The first phase of construction will cover 300 cities and support 15
million users.
The network aims to expand to become the world's largest within three years,
supporting some 50 million users.
According to China Unicom's statistics, the investment of each CDMA user will be
RMB1,600 (about US$193). Already, the company has invested RMB24 billion for the
first phase of construction, and the total investment is estimated to top RMB80 billion
in three years. The company expects to earn back its investment in seven years. But the
vice-president said the period would most likely be shortened.
With the world's largest mobile telecom market, with 125 million users, China has
become the focus of the global telecom industry.
As a competitor of the GSM network, which supports almost all Chinese mobile users,
CDMA is said to be more efficient, of higher quality and safer for users.
CDMA's fee structure will be the same as China Unicom's GSM network -- a RMB45
monthly base charge and a call rate of RMB0.36 per minute, according to Lu.
This is said to be 10 percent less than China Mobile.
China Unicom plans to target high-end users, many of whom already subscribe to GSM,
as high-end customers use their mobile phones more often and CDMA's low-radiation
and high-voice quality will be attractive to them, Lu said.
(Xinhua News Agency)
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