The central government is buying time to allow the mainland's homegrown third-generation (3G) mobile-phone standard to develop by delaying the issuance of licences for the advanced communications technology.
Supporting a delay are mainland telecommunications suppliers such as Datang Telecom, a strong proponent of TD-SCDMA, which is developing equipment to support the standard, and mobile-phone carriers China Mobile and China United, which want more time to recoup their investments in second-generation networks.
Advocating a speedy issuance of 3G licences are fixed-line carriers China Telecom and China Netcom, which want to move into the new arena, and domestic and international vendors of WCDMA and CDMA2000 equipment who are eager to tap a market estimated at 400 billion yuan (HK$374.72 billion).
Caught in the middle is the Ministry of Information Industry (MII), which has yet to state clearly when it will issue 3G licences but so far appears to be lending its support to TD-SCDMA and holding off as long as possible.
'It's not an easy task for the MII to balance all parties' interests,' said Song Junde, a professor at Beijing University of Post and Telecommunications, whose research institute was tapped by the State Council and the MII to advise on how the mainland's 3G policy should be developed. 'Everybody has their own interest and everybody is putting pressure on the MII.'
Yet it is clear backers of TD-SCDMA have the upper hand, with government regulators putting national interests ahead of anything else.