Xiaolingtong versus 3G in China: Which will be the winner?

Xiaolingtong (XLT), a new type of mobile phone system based on PHS technology for wireless access of fixed-line telephone networks, has grown very rapidly in China. However, there are many doubts about the future of XLT once 3G (the third generation of mobile communication) is finally employed. This paper proposes a theoretical framework to assess and compare XLT and 3G from four perspectives: technology, market demand, business models and government policy. It concludes that XLT and 3G will coexist with existing 2G/2.5G mobile communication networks for a considerable period of time. With service collaboration and integration, the coexistence of both of these technologies can enhance China's mobile communication infrastructure and support the growth of mobile commerce.