China Mobile 3G strategy

China Mobile did not yet get a 3G license, but has launched a tender to build its $3bn TD-SCDMA network. About 87% of the value would be for network equipment procurement and remaining 13% for handsets. 8 vendors would be selected: 4 for the radio access and four for the core network. Some vendor names have already circulated for the job: Datang, ZTE, China Putian and TD Tech for the radio access part (about 75% of the total network); while ALU, Ericsson, Nokia and ZTE are nominated for the core network. The first conclusion is the lion share of Chinese vendors, even if most of them have partnership with western companies. ALU- Alcatel Shanghai Bell is partnering with Datang, Siemens and Huawei with TD Tech; Ericsson with ZTE; Nokia with Putian. If confirmed, the other major conclusion is the absence of Motorola, NEC, Fujitsu and Nortel and the low profile of Huawei.