Chinese research firm CCID says that the rapid deployment of 3G networks in China will result in the creation of about 660,000 3G subscriber lines by Q3 this year. The figure was published in a CCID report, Local Vendors Stand out in Chinas 3G Equipment Market.
According to the report, the total number of 3G lines in China will be split among the three largest telecom operators on the mainland, with China Mobiles TD-SCDMA network creating more than 300,000 3G lines, China Unicom around 200,000 UMTS lines, and the rest attributed to China Telecoms CDMA2000 deployment.
The report also segregates the market share of leading 3G equipment providers in China. ZTE leads among all vendors that have supplied 3G equipment in China with a 29.3% share, followed by Huawei with 21.9%. Other vendors that have been helping operators create 3G carrier frequency include Datang (12.6%), Ericsson (10.9%), Nokia-Siemens (6.8%), and Alcatel-Lucent (6.8%).
CCID says that the success of both ZTE and Huawei in providing 3G equipment solutions in China further validates its observation that local 3G equipment vendors that supply TD and CDMA solutions have a competitive edge over other vendors. CCID also emphasises in the report that the active involvement of both ZTE and Huawei in the construction of China Unicom and China Telecom's 3G networks fully demonstrates the two companies strong ability in helping carriers deploy large-scale WCDMA and CDMA2000 networks.
The report also underlines the competitive price point of Chinas home-grown 3G technology. This, says CCID, is a key feature that will have strong appeal among international operators, particularly those in Europe and the US, in light of the current global financial crisis, when most carriers are looking for cost effective technology options.