Some sources predicted China Mobile could start building the new trial networks in March. CMCC was not available for comment.

China Mobile's increasing TD-SCDMA push could bode badly for vendors backing foreign standards, as the firm controls about 70 percent of the country's mobile phone subscription base.

Huawei Technologies, the top Chinese telecom equipment maker, could be dealt a heavy blow as the firm has invested more that 4 billion yuan in developing WCDMA technology.

Manufacturers and technology vendors have been anticipating a windfall from the development of 3G networks that could mean purchase orders worth tens of billions of US dollars. But now that number might be much smaller than expected.

Out of the five new cities selected to build TD-SCDMA networks, three are related to the 2008 Olympics. Besides Beijing, some events will be held in Tianjin, Qinghuangdao, Shenyang, Qingdao, Shanghai and Hong Kong.

Some industry observers think that 3G services might be available only in Olympic-related cities, in addition to Guangzhou and Shenzhen, where mobile phone users have greater data demands for advanced telecom service.

                                                                        (China Daily 01/31/2007 page13)

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