China's Wireless Potential Lures Foreign Companies

SOUTH SAN FRANCISCO, Calif., March 12 -- Telecom growth in China has surpassed all expectations, according to a report from market analysis firm RHK, and broadband subscriber numbers in China have reached a point where carriers will begin to enjoy growth -- at least for the next 3 years -- that may mirror the recent extraordinary growth in mobile voice.

"As demand for broadband access heats up, all the elements appear to be in place to allow broadband wireless to capture a significant portion of this market," RHK said. "These elements include established standards for 5.8 GHz and 3.5
GHz, issuance of spectrum licenses to multiple carriers to spur competition, decreasing prices for broadband wireless equipment, scarcity of wireline broadband service and attractive subscription fees for broadband wireless access."

Alie Saad, program director, Broadband Wireless Group at RHK, said there are "growing signs that the pace of the telecom infrastructure build-out by the state-owned enterprises will slow down, due in part to a credit crunch at the four state banks of China that have underwritten the majority of the costs."

For more information, visit: rhk.com