According to Chinese communications equipment makers, China Mobile may launch TD-SCDMA wireless telephone service in 38 cities nationwide in May 2009.

This new service is reportedly undergoing commercial trial in Shanghai and Guangdong and the largest selling point of this service is its low charges, with the local calling fee at low to CNY0.06 per minute.

The TD-SCDMA telephones can support both TD-SCDMA and GSM networks, which will ensure the call quality before the full coverage of the TD-SCDMA signal is activated. After the TD-SCDMA network coverage is completed, the users can switch to the TD-SCDMA network, so as to reduce operating costs with scale effect.

Compared with other Chinese communications operators, the fixed line business, whose users are mainly families and major corporate clients, is the weakness of China Mobile. With the launch of the TD-SCDMA telephone business, China Mobile aims to make up its weakness in this sector.