The Chinese government recently announced fifteen policies explicitly designed to make it easier and cheaper for China Mobile to get TD-SCDMA to market.
including funding for development, accelerated handset approvals, 5Mhz of extra spectrum and favorable interconnect rates.  This indicates that TD-SCDMA is technically and financially less viable than WCDMA or CDMA2000 and that  China is deadly serious with respect to forcing China Mobile to roll-out this technology on a nationwide basis, according to Richard Windsor, who tracks mobile industry developments at Nomura.  Windsor's take is that many of the capex forecasts for China continue to include only a small portion for TD-SCDMA which is absurd given that China Mobile has 70% of the subscribers.
So, he concludes that over the next three years, China Mobile will be forced to spend much less on EDGE and far more on TD-SCDMA.  This moves the balance of the Chinese market in the favour of the local players who are very likely to get the lion's share of the roll-out, according to Windsor.
The major loser here is Swedish telecom equipment provide Ericsson, which earns some of its highest margins on 2G expenditure in China, because its Chinese revenues and margins will decline relative to the total spend on TD-SCDMA, Windsor says. He predicts that Paris-based Alcatel-Lucent, which is much weaker in 2G and China's ZTE stand to see their fortunes improve with the rise of TD-SCDMA.