Doing Business in China

China is boosting the development of 3G market.There are great great business opportunities of 3g market in China.The 3G market is expected to explode.China issued 3G licenses to its three surviving integrated telecom carriers on January 7, 2009, including a TD-SCDMA license to China Mobile, a WCDMA license to China Unicom, and a CDMA2000 license to China Telecom. Investments in 3G fixed assets are foreseen to top CNY 170 billion this year.

China Mobile plans capital expenses of CNY 133.9 billion this year. Of the money, 76% will be used for 2G/3G markets and 24% for the 2G segment, particularly for rural areas.

China Unicom President Lu Yimin earlier said that the telecom operator plans capital expenses of CNY 110 billion or so this year, rising 56% from CNY 70.49 billion in 2008.Of the money, 35%, 22%, and 16% will be used for the 3G business, the GSM business, and the fixed-line broadband business respectively.

China Telecom's capital expenses for 2009 are forecasted to amount to CNY 39.2 billion.

China Telecom (SEHK: 0728, NYSE: CHA) lately met with CDMA mobile phone makers on the customization of 3G terminals and the finalization of marketing strategy shortly after it put over 20 models of 3G mobile phones on the market.The Chinese telecoms carrier kicked off its 3G service this April in 120 Chinese cities under the brand of eSurfing. The company's long-term strategy shows that it will extend its 3G service to a total of 500 cities by the end of this year.

Before the launch of its 3G service, China Telecom purchased 1.2 million 3G mobile phones by inviting public bidding in March. Among the over 50 bidders, Samsung, LG, and Yulong Computer Telecommunication Scientific (Shenzhen) Co., Ltd. won out in the end. They supplied more than 10 models of 3G handsets to China Telecom.

China Unicom, one of the Big Three telecom operators in the country, is well on track to promote its nascent 3G business to court for more customers. The company, which is authorized to operate WCDMA network in the country, expects to lure as many as 30 million users for 3G telecom business one year after the service is rolled out.

China Unicom has set aside CNY 38.7 billion or USD 5.6 billion to expand its 3G commercial network in 2009, disclosed people in the know. It started trail 3G commercial services after setting up a network covering 55 cities across the country on May 17, 2009, according to earlier reports.

China Unicom plans to set up 78,600 base stations in the first phase of commercial network construction this year, expanding its network to 284 cities throughout the country and making its 3G signal available to 74% of the population.

As it has done elsewhere, 3G in China will draw more people to use online services through netbooks and mobile phones, creating demand for security products, Steve Redman, McAfee's Asia Pacific president, said in an interview.

"We think security in China is about to explode," Redman said.McAfee is expanding its staff in China amid a boom in the country's security market fueled by the launch of next-generation mobile networks.McAfee will price its products aggressively to grab more of China's security market, which does not yet have a dominant player, said Redman.