[DIGITIMES] China plans to pour in as much as one trillion yuan (US$146.4 billion) for the establishment of its 3G networks in the next three years, according to Liu Liqing, chairman of the China Association of Communication Enterprises (CACE).
Liu made the remarks at a two-day telecommunications forum which kicked off in Taipei on June 3 to improve cooperation between Taiwan and China in the telecommunication segment.
Of the planned budget, 400 billion yuan will be allocated for construction of 3G network infrastructure and the remaining 600 billion yuan will be used for the purchase of CPE (customer premise equipment) products, Liu noted.
Taiwan makers which are strong in the production of WCDMA and CDMA CPE products are likely to benefit from China 3G projects, Liu contended.
China players are also considering establishing a TD-SCDMA lab in Taiwan in cooperation with local companies to accelerate the development of TD-SCDMA-enabled products, Liu added.
Huang Chung-chiu, vice minister of Taiwan's Ministry of Economic Affairs (MOEA), estimated that Taiwan makers, including chipset solution vendors, component suppliers and handset makers, are able to snap up 60 billion yuan, or 10%, of the windfall orders from China's 3G network construction.
Other participants from China also estimated that demand for 3G-enabled handsets in China is expected to top 300 million units in the next years.
Separately, China Unicom expects its subscriber base to increase by 30 million in 2009, while China Telecom is looking to attract 15-20 million new subscribers this year, according to representatives from the two companies who participated in the forum.
China said to spend US$146 billion for 3G networks in next three years
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