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More on China's 3G Flop

Posted by: Bruce Einhorn on November 28, 2007

Looking for additional evidence that China’s attempt to compete with global powerhouses by creating its own 3G standard is a fiasco? Consider this: China Mobile, the giant cellular operator, is drastically reducing its plans to order handsets that use the new Chinese standard, TD-SCDMA. To date, the Chinese government still hasn’t even awarded 3G licenses, because the home-grown technology isn’t ready. But China Mobile has been operating some trials and that’s given some boosters hope that TD-SCDMA may finally be ready for prime time. Well, prime time seems to be delayed yet again. According to a new report from Beijing-based research firm Norson Consulting, China Mobile has “drastically scaled down” earlier plans to order 2 million to 3 million TD-SCDMA handsets. Now, says Norson, China Mobile is more likely to order just 300,000 to 400,000. China Mobile is controlled by the government, of course, but even a state-backed company apparently knows that TD-SCDMA is not a winner.

Reader Comments

Katie Leumg

November 28, 2007 4:24 PM

An interesting read for us and for Bruce,139713-pg,1/article.html

Thanks for the article anyway Bruce.


November 28, 2007 10:03 PM

Thank you Katie for the link. Your article pretty show the bias and ignorance of Mr. Einhorn. China want to use the TS-SCDMA as alternative of constantly paying muli-million dollar fee to use foreign 3G technology and China plan to use the TS-SCDMA as base to build its own semiconductor technology to build chip and handset with China proprietary technology.
Whether TS-SCDMA is a winner or loser only time will tell since Bruce is not God any thing that can see the future!

Katie Leung

November 29, 2007 11:43 AM


December 3, 2007 2:32 PM

I guess if Bruce Einhorn could come out a 3G winner case, that will be very convicing.


December 3, 2007 8:57 PM

Bruce would select anything but Chinese product so he would chose any of the standard 3G. Notice that many writer in BW seems to have against China 3G or any attempt by China to create its own technology such as stating that it would be a waste of time for China to create its own 3G since China just need to pay to use existing 3G. I hope that BW is not being influenced by the companies to change its reader mind!


December 4, 2007 1:08 AM

It planning to build more 3G for the Chinese 3G system. The government is putting its support and many Chinese private companies as well is backing the homegrown product since paying fee to use foreign technology is cutting in the Chinese company earning!

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Bloomberg Businessweek’s team of Asia reporters brings you the latest insights on business, politics, technology and culture from some of the world’s biggest and fastest-growing economies.

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