Analysts have given mainland mobile services company Xiaolingtong an upbeat growth forecast for the next few years, even if China rolls out third-generation (3G) mobile services. Global communications research house Pyramid Research and Beijing-based telecommunications consulting firm MFC Insight expect Xiaolingtong users to rise nearly sevenfold to about 100 million by 2007. That compares with nearly 300 million wireline users expected to be signed up by 2007, according to MFC Insight. China had about 12.45 million Xiaolingtong users last year. Xiaolingtong is a local wireless loop network that the fixed-line duopoly - China Telecommunications Corp Group and China Network Communications Group - is using to tap the cellular business before they receive 3G mobile licences from the government. Under China's telecom regulations, Xiaolingtong is considered as an extension of a fixed-line service. Pyramid Research and MFC Insight believe that even if both fixed-line carriers receive 3G licences to offer high-speed full mobile services, Xiaolingtong's low-end basic voice services will continue to grow in coming years. 'China is a very diverse country. What we'll see is a certain part of the population will be using very basic services. So even though there will be a big demand for next generation services, we'll continue to see a strong demand for basic services,' said Connie Hsu, Asia manager at Pyramid Research. Ms Hsu believes both second generation and Xiaolingtong services will grow after China rolls out 3G services.
