Analysys International Says China's First Round Investment on 3G Equipments Will Reach RMB 10 Billion to 20 Billion

Analysys International Says China's First Round Investment on 3G Equipments Will Reach RMB 10 Billion to 20 Billion

July 04, 2006

    BEIJING, July 4 /Xinhua-PRNewswire/ -- Analysys
International, a leading Internet based provider of
business information about technology, media and telecom
(TMT) industries in China, says in its recently released
report "China's 3G Network Implementation Focus Report
2006", that China's first round of investment on 3G
equipments will reach RMB 10 billion to 20 billion. 

    The coming of 3G will definitely bring strong impact on
the overall telecom market in China. Every link of this
industry chain will benefit from this market, including
main equipments manufacturers, fiber & cable
manufacturers, terminal manufacturers, system integrators,
and other vendors of auxiliary lines such as electricity
power, instruments, etc. To grasp business opportunities
and win contracts in the coming new round of investment
cooperation with operators has become imminent for all
system/network equipment vendors. Some foreign vendors had
started their PR campaigns targeted at operators with the
advantage they have gained in 2G/2.5G era. China's 3G
equipment market has already been activated quietly. 

    According to Analysys International's "China's 3G
Network Implementation Focus Report 2006", if one 3G
license will be released in 2006, the first phase of 3G
network implementation should reach 10 million lines to 20
million lines to meet the user demands. Therefore, the
first round of investment on 3G equipments will reach RMB
10 billion to 20 billion if each line cost about RMB 1000.
The forecast of the investment on 3G equipment in the
coming years is also given by Analysys International as the
following figure shows. 

    Figure: China's 3G Equipment Investment Market Size
forecast  
http://english.analysys.com.cn/3class/detail.php?advertisement=002&id=219

    According to Analysys International's research,
"If China Mobile get the first license, it will have
enough capability and capital to carry out the construction
of 3G network. While if China Telecom get the license, it
will probably solve the problem of capital gap by indirect
financing," Says Mr. Cui Xiaolong, analyst from
Analysys International, "But if China Netcom or China
Unicom get the first license, neither of them can build up
the 3G network alone. China Netcom's selling out Asia
Netcom can be viewed as the capital preparation for 3G. But
anyway, China Netcom and China Unicom do not have enough
capital power to build up 3G networks alone. We suggest
that they can establish joint venture to construct 3G
network together."

    This subject is further discussed in Analysys
International's research report "China's 3G Network
Implementation Focus Report 2006".  For more
information, please check the website:
http://english.analysys.com.cn .  
 
    About Analysys International

    Analysys International is the leading Internet based
provider of business information about technology, media
and telecom (TMT) industries in China with the mission to
help their clients make better business decisions. They
provide data, information and advice to 50,000 clients
worldwide, representing 1,500 distinct organizations; they
also deliver over 150 consulting engagements a year, and
hold more than 20 events that draw in over 8,000 attendees.
Their clients include executives from companies like
technology vendors, vertical information technology users,
as well as professionals from professional service
companies, the investment community and government
agencies. For more information, please visit the website at
http://english.analysys.com.cn .  

    For more information, please contact:

     Jessica Wang
     Overseas Media Manager
     Analysys International
     Tel:   [phone] x394
     Fax:   [phone]
     Email: [e-mail] 

SOURCE  Analysys International