Mobile phone market surges in China

China's CDMA (Code-Division Multiple Access technology) handset market surged in the last month of 2008, while the market for GSM handsets continued to decline, according to a report released by Sino-Market Research Ltd last week.

In December, 1.29 million CDMA handsets were sold in China, up 33.6 percent year-on-year and 183 percent month-on-month, marking a new high in CDMA handset monthly sales since 2003.

December saw 28 new CDMA models launched by 11 handset manufacturers, demonstrating strong confidence from manufacturers in China Telecom's CDMA business. Domestically produced CDMA handsets accounted for 46 percent of the 1.29 million sold in the month. Sales were also boosted by China Telecom's RMB 120 million ($17.56 million) advertising campaign for CDMA services.

In cellular service there are two main competing network technologies: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). Code-Division Multiple Access refers to any of several protocols used in second-generation (2G) and third-generation (3G) wireless communications, and is a form of multiplexing, which allows numerous signals to occupy a single transmission channel, optimising the use of available bandwidth. The technology is used in ultra-high-frequency (UHF) cellular telephone systems in the 800-MHz and 1.9-GHz bands.

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