January 09, 2025

4G is finally here, the three major operators have all obtained TD-LTE licenses

4G license issuance finally settled in the last month of 2013.

The Electricity Administration of the Ministry of Industry and Information Technology officially announced yesterday that it issued the “LTE / 4th Generation Digital Cellular Mobile Communication Service (TD-LTE)” operation license to China Mobile, China Telecom and China Unicom on December 4, 2013. At the same time, the Ministry of Industry and Information Technology also lifted restrictions on China Mobile's fixed-line business and allowed it to enter the fixed broadband market. It is worth noting that no 4G licenses based on FDD LTE technology (international mainstream 4G standard) have been issued this time.

Earlier, Miao Wei, Minister of the Ministry of Industry and Information Technology, said in an interview with the Securities Times during the two sessions this year that 4G licenses are expected to be issued this year. 4G refers to the fourth-generation mobile communication technology. According to the definition of the International Telecommunication Union, 4G technology needs to meet the following conditions: the static transmission rate reaches 1Gbps, and the user can reach 100Mbps under high-speed movement.

The relevant person in charge of the Ministry of Industry and Information Technology said yesterday that accelerating the promotion of 4G commercial development is of great significance to promoting information consumption, stimulating domestic demand and realizing the national innovation strategy.

Take 3G development as an example. In the first three years of China's 3G development, it has directly driven investment of 455.6 billion yuan and indirectly driven investment of 2.23 trillion yuan; directly driven terminal business consumption of 355.8 billion yuan and indirectly driven social consumption of 303.3 billion yuan; directly driven GDP growth 211 billion yuan, indirectly driving GDP growth of 744 billion yuan. At the same time, the 3 years of 3G development have directly driven the increase of 1.23 million jobs and indirectly driven the increase of 2.66 million jobs.

Therefore, the person in charge said that on this basis, with the construction and deployment of 4G networks and the continuous introduction of 4G new services, the effect of stimulating economic growth and creating jobs will be more significant. He also said that in the next step, the Ministry of Industry and Information Technology will continue to take effective measures with relevant ministries and commissions to vigorously support and promote related enterprises to accelerate the construction and optimization of mobile communication network construction, continuously improve network service levels and user service quality, and strive to enrich mobile Internet business applications promote information consumption, effectively drive demand, and continue to promote the in-depth integration of informatization and industrialization.

The Ministry of Industry and Information Technology did not issue FDD LTE licenses this time. Analysts believe that this aspect has cleared obstacles for the development of China Mobile, and on the other hand will also bring certain pressure to China Telecom and Unicom.

Previously, in response to China Mobile's 4G offensive, China Telecom and China Unicom made full preparations for the 4G standard based on FDD LTE technology. However, the first wholesale 4G licenses do not have their carefully prepared FDD LTE.

There have been industry opinions that the Ministry of Industry and Information Technology is more likely to issue TD-LTE licenses this year. China Telecom Chairman Wang Xiaochu once said that if the first batch only issued TD-LTE licenses, China Telecom would prefer to lease TD-LTE networks from China Mobile to promote 4G network deployment.

The first batch of 4G licenses does not mean that the three major operators only operate TD-LTE. Both China Telecom and China Unicom have indicated that they will adopt the TD-LTE / FDD LTE fusion networking method, which means they will also receive FDD LTE license. The industry expects that, similar to China Telecom, China Unicom will focus on FDD LTE, because the upgrade direction of China Unicom's 3G standard WCDMA is FDD LTE. China Unicom also said in today's announcement that it will continue to actively apply for FDD LTE network scale technology trials and rely on leading-quality 3G networks to provide users with higher-speed mobile broadband data services.

China Mobile has the highest enthusiasm in TD-LTE network construction. Previously, China Unicom had stated that in terms of budget, it is expected that the future investment in 4G will be controlled within 10 billion yuan. Wang Xiaochu said publicly in August this year that China Telecom ’s investment in the construction of 4G networks will be transferred from 3G investments to 5 billion yuan, which will bring Telecom ’s 4G investment to 10 billion yuan this year. In contrast, China Mobile plans to invest a huge 200 billion yuan.

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