China Mobile lends backing to LTE
Updated: 2008-02-13 11:13
China Mobile, the world's largest mobile phone operator, is on Wednesday expected to lend its support to LTE, the wireless broadband standard that looks set to become the flagship 4G technology.
LTE, or Long Term Evolution, is gaining strong momentum as the next generation wireless technology to provide super-fast web surfing on mobiles.
Arun Sarin, Vodafone's chief executive, said on Tuesday that the UK group would join with China Mobile and Verizon Wireless, the second-largest US mobile operator, to promote LTE.
He said LTE was getting a "pretty good push". "LTE, on the back of Vodafone, Verizon and China Mobile saying we are going there, is a pretty clear direction in terms of where the industry is heading," he added.
Sarin said WiMax should be harmonized with LTE, adding that Vodafone is planning to roll out 4G networks from 2010.
People familiar with the situation said China Mobile, the world's largest mobile operator by number of customers and market capitalization, would on Wednesday lend its support to LTE.
They added it was unclear whether China Mobile would also support the case for a distinct Chinese 4G technology. China Mobile was not available for comment.
Olli-Pekka Kallasvuo, chief executive of Nokia, the world's largest handset maker, said: "I see LTE as being the main fourth-generation technology."
However, he said WiMax would be more than a niche alternative to LTE, adding there would be a diversity of 2G, 3G and 4G technologies used by mobile operators.
Alcatel-Lucent, the Franco-American telecoms equipment maker, and NEC, the Japanese electronics group, on Tuesday announced a joint venture under which they will pool research and development on LTE. Patricia Russo, Alcatel-Lucent chief executive, denied it was a cost-cutting exercise for the equipment maker, which last week reported a 2.6 billion euros ($3.8 billion) net loss for the fourth quarter.
She said the joint venture would accelerate deployment of LTE technology, due to be launched in Japan next year.
Meanwhile, Mr Sarin said Vodafone may need to buy additional radio spectrum for its Indian mobile business, which added 4m customers in the last three months of 2007. Last year, Vodafone bought a controlling stake in Hutchison Essar, the fourth-largest Indian mobile operator, for $10.9 billion, and Mr Sarin said it might have to buy spectrum from rivals if the government did not make it available.
He predicted consolidation among Indian operators, adding that one or two additional companies would enter the market. AT&T, the largest US telecoms company, has applied for an operating licence.
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