EINDHOVEN, Netherlands—In the parallel 3G universe occupied by China, the world’s largest mobile-phone market, the cart apparently comes before the horse.
The first video phone destined for the country’s TD-SCDMA technology—a dual-mode Samsung Electronics Co. Ltd. handset with guts by Royal Philips Electronics and T3G Technology—is available today, although China has yet to announce how and when it will award 3G operator licenses. The phone was originally announced in August, about the time that China’s testing of its TD-SCDMA technology ran into snags. However, TD-SCDMA appears to be moving forward, and foreign infrastructure vendors are poised to begin installing the networks once operator licenses are granted.
Some analysts now believe that China may be positioned to grant as many as four operator licenses, perhaps as soon as the second quarter. This expectation may be reflected in today’s joint announcement by the handset and component makers.
Vendor interest in China’s market is understandable. Mobile subscriptions are growing by 50 million new users each year. Analysts suggest that the world’s most populous country will sign up as many as 34 million 3G subscribers within three years, though about one-third are expected to pay for the advanced services available over the country’s indigenous TD-SCDMA air interface. One conspicuous user has been identified: China’s Vice Premier Huang Ju is said to have tested the Samsung handset, which may represent the leadership’s sense of a symbolic marketing effort for its homegrown and burgeoning electronics industry. The country is expected to produce nearly 300 million handsets this year, for both domestic consumption and export.
