Chinese 3G Spend Could Reach $150 Billion

The expenditure on China's 3G networks could reach close to US$150 billion over the next three years, according to Liu Liqing, chairman of the China Association of Communication Enterprises (CACE). The total spend is reported to be around one trillion yuan (US$146.4 billion), reports Digitimes.

Of the planned budget, RMB 400 billion (US$60 billion) will be allocated for construction of 3G network infrastructure, which is significantly higher than the US$41 billion that was previously expected to be spent on their 3G networks - with at least US$29 billion being spent within the next twelve months.

China Unicom expects that its capital expenditure with reach US$8.8 billion during 2009, with a further US$5.8 billion to be spent in 2010. China Mobile recently said that it plans to spend US$8.6 billion on its own network during 2009.

The remaining RMB 600 billion will be used for the purchase of CPE (customer premise equipment) products, Liu noted.

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 RMB 60 billion, or 10%, of the windfall orders from China's 3G network construction.

On the web: Digitimes

Posted to the site on 5th June 2009