China Mobile to Lower Frequency Requirements for Terminal Chips

Sina Tech, 12/03/13

According to an industry insider, China Mobile (NYSE: CHL; 0941.HK) has changed its TD-LTE terminal procurement policy, no longer requiring terminals purchased by the company to support "5 modes and 10 frequencies" of mobile network standards and frequency bands, respectively, as was previously specified. In early 2014, the company will introduce three-mode (TD-LTE/GSM/TD-SCDMA) terminal products.

During China Mobile's first tender of 160,000 TD-LTE terminals in the second quarter of 2013, overseas chipmakers, such as Qualcomm, won the majority of terminal contracts, while domestic chipmakers won a relatively small number of contracts, due to China Mobile's requirement that terminal chips support 5 modes and 10 frequencies. China Mobile has now altered its requirements to provide an adjustment period to Chinese chipmakers.

Editor's Note: For more background on this topic, please see "Only 1/3 of Bidders Win China Mobile TD-LTE Terminal Contracts" MD 8/07/13 issue.

Keywords: China Mobile procurement wireless CHL 0941.HK spectrum bidding 4G handset chip operator-customized

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