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To: Andrew N. Cothran who wrote (25885)4/2/1999 9:16:00 AM
From: Sawtooth  Respond to of 152472
 
Hard to keep up with this thread. Running as fast as I can! Hope this hasn't been posted already. Brain turns to mush after the first 50 posts.

Friday April 2 1:21 AM ET

Daley Says China To Introduce CDMA Nationwide
By Michael Kramer

GUANGZHOU, China (Reuters) - U.S. Commerce Secretary William Daley said Thursday China planned to adopt the U.S. mobile telephone standard nationwide alongside technology popular in Europe. ''During our meeting, Minister Wu confirmed the news of what we heard from Premier Zhu (Rongji) and State Councilor Wu (Yi) regarding CDMA,'' Daley told American businessmen.

The CDMA (Code Division Multiple Access) standard is now limited to trials in four Chinese cities, while the rest of China operates on the European GSM (Global System for Mobile Communications) standard.

''China will allow companies to introduce CDMA networks across China,'' he said after talks with Minister of Information Industry Wu Jichuan.

''As you know, U.S. companies are market leaders in the development of this field in which they see great opportunities,'' Daley told the American Chamber of Commerce in this southern Chinese city.

A concession on CDMA could help China's bid to join the World Trade Organization and could prove lucrative to U.S. companies such as Motorola Inc. (NYSE:MOT - news) and Lucent Technologies Inc. (NYSE:LU - news)

Ericsson, which acquired the CDMA equipment division of San Diego-based Qualcomm Inc. (Nasdaq:QCOM - news) last week, was also in talks, analysts said.

''He (Wu) was very emphatic to us that this should occur sooner rather than later,'' Daley told a news conference later Thursday. ''But he did not give a timetable.''

Wednesday, Liu Zhenyuan, director and chief Shanghai representative of China Unicom, told Reuters the small state-owned telecom firm planned to buy a five million subscriber CDMA mobile phone network from mainly U.S. companies later this year.

An agreement on the new network would be formally announced during Premier Zhu Rongji's visit to the United States next week, Liu said.

Zhu has backed CDMA as part of his efforts to spur competition in an industry dominated by state-owned China Telecom.

China Unicom was set up originally to challenge the giant China Telecom, but it has struggled to find patronage in the powerful Ministry of Information Industry.

Liu said it was still undecided which companies would be selected to build the CDMA network.

Wu told the opening of a Sino-U.S. telecommunications conference in Guangzhou that China planned to issue key rules by July to help shape future competition in its state-owned telecommunications sector.

The regulations are seen as laying the foundation for a national Telecommunications Act which would govern the rules of competition and government oversight in the booming industry.

He gave no details on the substance of the regulations, which are the object of hot debate among Beijing's leadership.

A major issue is over whether to cancel the MII's direct stake in China's virtual monopoly, China Telecom, and hand it a strictly regulatory role along the lines of the U.S. Federal Communications Commission, Western industry analysts said.

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