Government cancels 3G network rollout

26 Apr 2004

The Chinese government has announced plans to shelve the development of a USD80 billion 3G network in the country, delivering a massive blow to mobile equipment suppliers. Nokia and Motorola, the two biggest investors in the Chinese market, are likely to be hit badly, with Ericsson and Siemens also expected to be affected. The country said it will not be issuing 3G licences for the next couple of years, and has hinted that it may not do so at all following the failure of European operators, such as Hutchison, to attract significant interest in the service.