China Mobile requires that all TD-LTE smartphones to be certified beginning May 31, 2014 support five mobile communication standards: TD-LTE, FDD LTE, TD-SCDMA, WCDMA and GSM, according to the company.
The largest mobile telecom carrier in China has changed its policy on TD-LTE smartphones, for as of the end of 2013 it still required 5-mode support only for models priced at over CNY2,000 (US$326) but only 3-mode (TD-LTE, TD-SCDMA, GSM) support for models priced at about CNY1,000, in order to accelerate TD-LTE promotion, according to Taiwan-based supply chain makers.
The policy shift from 3-mode to 5-mode support will entail additional licensing fees for FDD LTE and WCDMA patents as well as reduce room for choosing chip solution suppliers, the sources said. For Qualcomm-developed chip solutions, overall hardware production cost for 5-mode smartphones is 15% higher than that for 3-mode models, the sources indicated, adding the price gap would be much wider If the 3-mode chip solutions are from China-based companies, the sources noted.
Therefore, China Mobile's 5-mode support requirement is expected to deal a blow to China-based IC designers but benefit international suppliers, especially Qualcomm, the sources said.
China Mobile is possibly considering availability of international roaming services for its TD-LTE subscribers and future competition with China Telecom and China United Network Communications (China Unicom) in the domestic market, the sources indicated.
