The fast development of China Mobile in rural areas relies upon its ever decreasing charges. At present, China Mobile is strategically expanding mobile network business in rural markets (China Mobile invests about RMB100 billion into the expanding of network capacity and the upgrading to EDGE). Moreover, lowering charges of China Mobile is also a threat to its rivals.

By means of industrial reorganization or 3G deployment, new mobile operators are expected to be in the market in 2008. Mobile network capacity of telecom industry will expand faster than the growth in 2006-2007.

TD-SCDMA network construction will be completed in October of 2007. Afterwards, the end-user testing will begin. (i.e. commercial release of TD-SCDMA). Such period will last by March of 2008. Parties concerned will draw conclusions on the feasibility of TD-SCDMA promotion in China.

Network Capacity of Mobile Operators in China

Statistics and Forecast of Main Financial Indicators of China Mobile (million)