China’s TD-SCDMA Industry Alliance has launched new regulations against unfair competition among its members in time for China Mobile’s planned TD-SCDMA tender for 23,000 TDSCDMA base stations announced this month.

The move has been prompted by the outbreak of vicious bidding for China Telecom’s first CDMA tender, where Huawei quoted a low price of US$100.8 million in order to grab a larger market share. At that price it reportedly incurred direct losses of US$730.4 million. Many believe the move has harmed the likelihood of bidders getting a fair price in future tenders.

Huawei’s competitor in the bid, Motorola, was also reported to have offered free equipment to China Telecom in 15 cities including Qingdao, Wuhan, Guangzhou and Shanghai, said Interfax.

Members of the TD-SCDMA Industry Alliance, consisting of network operators and equipment suppliers in China’s TD-SCDMA industry, should assume their obligations and responsibilities to maintain a market environment of fair competition and fulfill their mission to promote a virtuous circle in the entire 3G industry, it said.

However, some analysts said that the principles drafted were doomed to fail as TD-SCDMA companies will continue to scramble to increase their market shares, reported ChinaTech News.

“The principles have no legal validity. Therefore, they can not exert influence on market activities,” Fu Liang, a telecom industry analyst, said. “It is network operators such as China Mobile and China Telecom, rather than the alliance, who carry enough weight to regulate the whole industry.”

China’s TD-SCDMA Industry Alliance currently has eight council members, including China Mobile, ZTE and Datang, in addition to more non-council units, said the report.

Source:telecomtv