CHINA-DEVELOPED third-generation phones will probably cost less than 1,000 yuan (US$128) each, even cheaper than some current 2G phones.

The low-price strategy will help homegrown 3G phones compete against Western technologies, said a source at the TD-SCDMA (time division-synchronous code division multiple access) Industry Association.

Companies involved in the TD-SCDMA industry chain, such as chip designers and phone makers, have even talked about trying to cut the price of their phones to US$100.

The price reductions are "very possible, as we own the patent on the homegrown technology, and we have invested heavily in TD-SCDMA chip design," said Zhang Wei, a Shanghai spokesperson for Shenzhen-based ZTE Corp.

China is expected to issue 3G licenses this year, paving the way for the transmission of videos, games and teleconferences via mobile handsets. Most analysts expect authorization for a TD-SCDMA license to come first.

The other two technologies are US-developed CDMA 2000 and Europe's WCDMA (Wideband CDMA).

TD-SCDMA can't compete with the other 3G technologies already used in the West, and most Chinese consumers would take a wait-and-see attitude if the homegrown phones are expensive.

About 16,000 TD-SCDMA phones are already being used in tests in several Chinese cities, and phone makers such as ZTE and Datang have launched 17 handset models, the TD-SCDMA Association said.

Source:未知