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Why China Mobile CHL is a buy: IV

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Two important news about China wireless arena yesterday.

1) China Mobile finally started the long awaited trial of TD-SCDMA 3G network (read Chinese news story 1 , and 2 from XinhuaNet). Some features of 3G include the video conference/phone, TV program, etc.

2) The new (lower) roaming fees takes effect.

I think 2) may have slightly negative effect on CHL’s earning, while 1) is insignificant and we will not know the success of 3G/TD until 2009/10.

China Mobile 3G TD-SCDMA trial
(Picture from XinhuaNet: people are lining up for 3G phones)

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