China Mobile Communications' fledgling 3G network in the mainland has faced delays because residents are unhappy about the size of the transmitting equipment being put on top of their buildings.
The nation's biggest cellular operator is expected to invite tenders for the manufacture of 3G handsets compatible with the home-grown TD-SCDMA network late next month, about a month behind schedule.
'The commercial trial may kick off in late December,' Wong Chi-man, China Everbright Securities' analyst, said. He added the TD-SCDMA network construction had been slower than forecast as residents in the launch cities opposed the installation of the new equipment which was larger than existing 2G base stations.
'The issue was resolved after the government required China Mobile to install smaller antennas,' Mr Wong said, adding that Comba Telecommunications, a Hong Kong-listed vendor, was one of the suppliers providing the new antenna. China Mobile will launch the service in eight cities including Beijing, Shanghai, Guangzhou and Shenzhen, targeting about two million users. It will procure about four billion yuan worth of TD-SCDMA handsets for the launch, according to mainland media.
Mainland vendors including ZTE, Huawei Technologies, Lenovo, Hisense, China Wireless and SIM Technology are likely to tender for the business along with South Korea's Samsung Mobile and LG.
The companies have provided TD-SCDMA mobile phones to China Mobile as part of the tendering exercise. The company requires handsets capable of automatic switching between the TD-SCDMA and GSM networks, allowing users to be reached via the GSM network when they are in TD-SCDMA zones. China Mobile also requires handsets to support high-speed mobile internet access of up to 400 kilobits per second download speed, which is faster than the standard TD-SCDMA download speed of 384 kilobits per second.