BDA - Opportunity through Insight

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Feb 10 2009	Full PDF Version

Wireless City – Prospect Relying on 3G

China's ‘Wireless City' initiative has gained significant momentum since 2007 and can now count operations up and running in several major cities, including Beijing, Hangzhou, Jiading (a district of Shanghai), Nanjing and Xiamen, with another 10 cities set to follow suit. Telecom operators have now begun to emerge as major players by providing wireless broadband services, leveraging their 3G networks or WiFi hotspots. Although new entrant operators continue to have ambitious Wireless City plans, they still face the challenges of cost pressures, low market demand, meager return on investment and potentially fierce competition from telecom and cable carriers. Meanwhile, telecom operators have started aggressive 3G rollout and WiFi Access Point (AP) build outs. A number of CATV operators have also started to show interest in Wireless City development. While in the short term these operators remain cautious about investing in Wireless City projects because of the above challenges, in the longer run, BDA believes they will become the winners in Wireless City market.

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