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Along with the developing of mobile phone market in China, there begin to emerge newest market characteristics, some of which constitute the key parts of whole industrial chain and probably sometimes reshape the industrial situation, thereby should be emphasized as follows:

1、 The advent of 3G era

Generally speaking, 3G is the abbreviation of Third Generation, and represents the 3rd-generation mobile telecommunication technology. In comparison with the 1G (Analog mode ) and 2G (GSM、TDMA and other digital mode), the 3G frequently means a new generation of mobile system, which combines wireless telecommunication、multi medium system (abbr. MMS hereinafter)、 and Internet.Currently, there are mainly 3 kinds of standards for 3G, i.e. WCDMA、CDMA2000 and TD-SCDMA. Among them, TD-SCDMA is set down lonely by China. This standard converges intelligence wireless、 synchronic CDMA、 software radio and other current advanced international technologies. Because of the huge market in China, TD-SCDMA is thought much of by the main telecom devices manufacturers, and more than half of the telecom devices providers have announced to support this standard.

When telecom network is upgraded to 3G system, the mobile terminal device (i.e. handset) will possess functions to deal with pictures、music、video-stream and other MMS formats; and to provide lots of information services such as: web page browse、 telephone conference、and e-business etc. And even, 3G handsets can be used for shopping and ticketing.

According to the estimation of Institute of Telecommunication Science and Technology (an institute belonging to MII), by 2010, China’s 3G users will reach 200 million. It is also estimated that between 2005 and 2010, China’s accumulated revenue from 3G may reach as much as RMB1000 billion. Obviously, there is notable market potential for 3G in China48.

As is said by Mr. Wangxudong (the minister of ministry of information industry), after many years of struggle, China has possessed the conditions to develop 3G mobile systems. Next step, the supervising department will keep ready to stipulate detailed regulation and technological standards to drive the progress of 3G effectively. Simultaneously, the relative operating companies should make adequate preparation for the 3G businesses at hand49. This address (on Dec. 27th, 2005) indicates the Chinese official opinion on 3G, and undoubtedly, unveils the advent of 3G in China in the near future.

Reportedly, Mr. Xuqin (the official of NDRC, and department chief in charge of the high-tech industry) expressed clearly during the 2007 Chinese Industrial Development Reporting Conference on Nov.10, 2006, that the relative cities of 2008 Olympic game will be definitely offered 3G services. And in fact, from the end of Mar. 2006, 5 cities have been selected as the testing base to check the outdoor capabilities of TD-SCDMA.

2、First domestic handset alliance established

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