By staff reporter Ming Shuliang

From Caijing Online

China Mobile, the world's largest mobile carrier, was licensed to develop TD-SCDMA, a domestically developed network. China Unicom will develop a WCDMA network, while China Telecom will develop a CDMA2000 network, both of which are in wide use around the world. In doing so, China will become the only country with three different 3G networks.

The Chinese government expects 3G services to improve telecom competition and boost domestic consumption. The State Council, China's cabinet, announced its approval on December 31.

On January 6, China Unicom and China Netcom completed their merger and formed a new China Unicom, the last step in a state-led restructuring that started May 2008. Li Yizhong, minister of Industry and Information Technology, said he expects investment by the telecoms in 3G services this year and next to reach 280 billion yuan.

China Mobile launched commercial trials of the TD-SCDMA network in early April. China Telecom and China Unicom will offer 3G services in the second half of 2009.

Some industry insiders, however, remain cautious. One telecom executive told Caijing that it will take at least three years to determine whether the 3G meets market expectations.