All three China operators to be awarded TD-LTE licences

Speculation over China 4G licensing continues to run hot. The most likely scenario is that China Mobile will be issued with its licence first, and not until toward the end of the year (zh) when its network is  commercial-ready.

But, according to one widely-reposted report Tuesday (zh), all three operators are to be awarded TD-LTE licences. If they wish to build out FDD-LTE networks, they will have to apply for a separate licence.

The obvious impact of this scenario, if true, would be to give the home-grown technology - and China Mobile - a head start.  But it may perhaps be designed also to put pressure on China Telecom, the smallest mobile player. 

Whereas W-CDMA operators China Unicom clearly plans to upgrade to FDD-LTE, China Telecom, which runs an EV-DO network, is pressured by the enormous 4G capital cost and the  deeper pockets of its rivals.

Speaking at the company's annual results announcement in March, China Telecom CEO Wang Xiaochu expressed a preference for FDD because of the lower equipment cost. But he also held open the door of using the China Mobile network if he couldn't obtain an FDD licence. 

In any event, there's no suggestion Unicom or Telecom will be forced to actually build a TD network. They will simply have to wait awhile. Given that they are at least a year behind China Mobile in 4G preparations, that is no handicap.