The carrier is therefore investing in building out a next-generation 4G TD-LTE network that would help it move on from its home-grown TD-SCDMA network and increase its chances at landing lucrative smartphone contracts.

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China Mobile, like all Chinese carriers, uses a unique technology standard (TD-SCDMA) for its 3G cellular network.

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Moreover, the fact that China Mobile runs its 3G network on a proprietary homegrown TD-SCDMA standard has proved to be a big deterrent for the carrier in securing smartphones compatible with its network.

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This network standard, called TD-SCDMA is incompatible with the 3G networks of most other carriers.

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China Telecom has also been helped by the fact that China Mobile currently runs its 3G network on a homegrown proprietary TD-SCDMA standard that is not compatible with many smartphones.

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Going forward, as smartphone makers increase their focus on China by bringing out more TD-SCDMA handsets and China Mobile launches its 4G LTE network, the carrier will be able to reap the advantages of having a huge 2G subscriber base to transition to 3G.

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TD-SCDMA would reduce its dependence on foreign vendors and technology, and level the playing field for domestic suppliers of network infrastructure and handsets.

ECONOMIST: Asian mobile telecoms