China Mobile may raise handset and plan subsidies to as much as 10 billion yuan (US$1.5 billion) in 2009 to promote their third-generation (3G) TD-SCDMA network services. China Mobile CEO Wang Jianzhou said in a Bloomberg News interview last Saturday at the World Economic Forum in Davos, Switzerland.
Wang stated “In order to promote our 3G business, we’ll increase subsidies for handsets,” ….“Ten billion yuan is possible” and the spending would include 2.5 G services. China Mobile has been working out technological issues to ensure that new TD-SCDMA handset users can seamlessly transition between TD-SCDMA (3G) and EDGE (2.5G). This back and forth transition during handset use may be critical has TD-SCDMA has thus far delivered spotty connectivity in areas and EDGE coverage has remained solid.