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To: djane who wrote (4912)5/27/1999 3:16:00 AM
From: djane  Read Replies (4) | Respond to of 29987
 
Nice 5/18 Lehman reports on G* and LOR

lehman.com

lehman.com



To: djane who wrote (4912)5/27/1999 3:28:00 AM
From: djane  Respond to of 29987
 
Private Chinese carrier plans huge CDMA network

By Sunray Liu
EE Times
(05/26/99, 5:14 p.m. EDT)

BEIJING — China Unicom, one of the few rivals to state-run China
Telecom, plans to establish a huge code-division multiple-access (CDMA)
network with 50 million-line capacity and more than 35 million
cellular-phone users by 2003.

Unicom's planned acquisition of a pager business and four CDMA trial
services from China Telecom in Beijing, Shanghai, the southern city of
Guangzhou and Xian in central China underscores its plans for greater
competition in the Chinese telecommunications market. A source here said
one key to meaningful telecom reform in China was promoting rapid growth
for Unicom.

Currently, China Telecom's Global System for Mobile (GSM) wireless
network is 10 times larger than Unicom's. Unicom said it will also invest
more than $240 million in Internet Protocol telephony.

Unicom will spend $870 million this year to build its CDMA network,
which will initially serve 2 million customers. Network capacity will expand
to 10 million users and cover 160 Chinese cities beginning next year. The
company is aiming for a 30 percent share of the Chinese wireless-services
market by 2003.

CDMA's technical advantages and Unicom's heavy financial investment are
expected to attract many Chinese users as the company attempts to knock
down key technical barriers. For example, handsets initially available in the
four major cities will have roaming capabilities all over China just as
popular GSM services do, Unicom said.

Moreover, Unicom will focus more heavily on third-generation wireless
communications technology than other Chinese operators, said Li
Zhengmao, Unicom's vice-chief engineer.

China Unicom was formed by the former Chinese Ministry of Electronic
Industry and other agencies to help break China Telecom's monopoly.
Unicom initially challenged China Telecom by introducing its own GSM
services.

The company's CDMA announcement coincided with a
telecommunications exposition hosted by Unicom at which several U.S.
companies displayed CDMA-based systems. Lucent Technologies
introduced a cdma2000 switching system while Motorola Inc. displayed
cdmaOne and cdma2000 solutions along with its newest handsets.

Local manufacturers have meanwhile announced advances in CDMA
system design and production. Zhongxing Telecom (Shenzhen), China's first
CDMA research unit, said it has designed a system based on its own
intellectual property.

Growing demand for handsets is also expected to created new
opportunities for telecommunications manufacturers here and overseas.
Major Chinese handset suppliers include Motorola, Qualcomm Inc. (San
Diego) and South Korea's Samsung Electronics. Several local producers
offer GSM handsets, and it is said they are interested in shifting to CDMA
handset production.

Industry experts here said some patents for CDMA handsets are held by
Qualcomm. If patent issues are resolved quickly, they said, many Chinese
manufacturers will jump into handset production. In that case, observers
said it will create greater demand in China for new designs and CDMA
chip sets.

Unicom, Qualcomm and other technology companies are expected to play
key roles during the fourth annual CDMA World Congress, to be held June
14-18 in Hong Kong.


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