3G Problems in China

China Telecom negotiated with Qualcomm before CDMA2000, and the patent fee was 4%. The patent fee of WCDMA is collected in Europe, and foreign manufacturers collect more patent fees. Nokia, Qualcomm, Ericsson etc. It occupies most of WCDMA patents, while China Huawei only accounts for 7%.

If all three operators successfully roll out their own network construction, it will mean that China will have to pay for three 3G standards at the same time, which will cost hundreds of billions of RMB. In addition, once consumers choose a good 3G operator, they will be kidnapped by the operator to a great extent, which is extremely unfavorable for consumers to safeguard their own rights and promote the full competition of operators, because changing the operator means that the mobile phone number card and mobile phone terminal are replaced together, and the cost is too high. Unlike the GSM network built by China Mobile and China Unicom in the 2G era, consumers only need to replace the SIM card. It is easy to change operators by using dual-mode or multi-mode terminals, but dual-mode terminals are expensive and consume a lot of power, and only one of the three network chips (TD-SCDMA/WCDMA/CDMA2000) is in use, which is a great waste. The coexistence of three kinds of networks in China is also a great pressure for mobile phone manufacturers, because if a network standard is unified, manufacturers can develop a mobile phone with potential market scale nationwide. Under the three network standards, because a mobile phone can only be used under one network standard, the potential market size is reduced to one third of the original, which increases the burden on mobile phone manufacturers and compresses the profit space.

China Mobile, China Unicom and China Telecom were kidnapped in three industrial chains with uneven strength: TD-SCDMA, WCDMA and CDMA2000. The imbalance of global industrial chain power pattern can easily lead to the imbalance of the three major operators. Therefore, in a few years, it is very likely that one or two operators will decline in the domestic market together with their 3G industrial chain, and return to the situation where one operator dominates. In this way, the painstaking goal of telecom restructuring will be in vain.

In addition, building three types of networks at the same time nationwide is not conducive to national unity and the development of China's communications industry. Qin Shihuang consolidated the foundation of a unified multi-ethnic country. In the subsequent history of China, the unified Chinese characters and the same width of car tracks did not affect the communication and competition between various factions. On the contrary, they have created a big platform for the exchange and development of the whole Chinese nation, exerted the scale effect of big countries, and achieved the Chinese civilization of "eternal flame of civilization and self-respect". Today, as long as China's mobile communication industry chain competes and exchanges on the same platform, it is unmatched in the world in terms of scale effect, and it is a one-stop train in any way. However, the three 3G networks will artificially split China's mobile communication industry chain into three relatively independent parts, making it difficult to compete with Europe and America alone. You know, Europe is a unified WCDMA industrial chain, and the United States is a unified CDMA2000 industrial chain. I'm afraid we don't have the strength to go to Europe and America, where PK China is one third as strong.

For the construction of 3G network, it is best for all three operators to issue TD licenses nationwide, which can give play to the scale effect of China's mobile communication industry and market and save the construction cost. Considering that there are many European and American tourists in Shanghai, Hangzhou, Quanzhou, Guangzhou and other local coastal areas, and a considerable number of local mobile phone users have parallel mobile phones with WCDMA or CDMA2000 functions, local Unicom or telecom companies can be granted WCDMA or CDMA2000 licenses at the same time to take care of reality and meet local special needs.