Mr. Lin

     The Chinese PHS market as of the end of 2003 is expected to consist of service in 359 cities with a total of 30 million subscribers. The network as a total capacity of 50 million lines and cities such as Guangzho, Quanzhou, Beijing, Tianjin etc. have one million lines capacity each. Further PHS development is expected due to PHSfs high cost efficiency compared with other mobile services.

     The PHS system has connection quality problems such as the call drop and this must be fixed. Network carriers will shift future development from the construction of the new network to optimization of the existing network. New handsets should not only compete with offerings from other network carriers but also satisfy new subscribers. PTT (network carrier) is planning to provide new handsets with better communications quality, lower price, various shapes suitable for various markets and more services such as data communications. We think that the most important way of increasing communications quality is by increasing the handset transmission power.

     We propose a the new g20mW Handseth and g1W CS (Cell Station)h, not standardized yet in ARIB RCR STD-28. This combination can expand the CS coverage area, reduce system construction costs, and as a result, the communications quality will be improved. If the transmission power of the handset can be controlled from 20mW to 10mW, it can operate in the existing system as well

     Wefd strongly like PHS MoU Group to take the initiative in investigating the standardization of the above proposed g20mW Handseth, not only to ensure the customersf satisfaction but also to bring three Wins to the customers, carriers and manufacturers as well.