Deng Shoupeng, director of the Development and Reform Commission of the State Council, tells local media at this year's TD-SCDMA Industry Annual Meeting that China will invest a total of CNY600 billion in the first six years after 3G is initiated.

Deng said the amount was based on the general estimates from each operator in China.

Different from some telecom experts who thought that the large investment in 3G would cause deficits and losses to state assets, Deng believes that this amount of investment will contribute to China's domestic GDP growth, employment, services and taxation.

According to Deng, the amount of funds needed for 3G would be raised through many different channels including domestic investment, foreign investment, state investment and private investment. And the risks and profit shall also be shared among the concerned parties.

Deng said that the national government would continue to play the role of a supporter for 3G development. He summarized the government's responsibilities on 3G as inspecting standards, allocating frequencies, issuing licenses and supervising the operation.

At present, the Chinese government is actively preparing for the next period of TD-SCDMA tests by building a TD-SCDMA trial network.