Joint venture for 3G development ( 2003-08-30 07:39) (China Daily)
A memorandum of co-operation
was wrapped up yesterday between Siemens Mobile and Huawei Technologies to build
a TD-SCDMA joint venture to explore the development of the home grown
third-generation (3G) wireless communications standard.
"We are pleased to form the co-operation and we are well prepared to
strengthen our China commitment,'' said Christoph Caselitz, general manager of
the Networks Department of Siemens Mobile.
Total investment in the Beijing-based joint venture will reach more than
US$100 million, with Siemens owning 51 per cent and Huawei Technologies 49 per
cent. The project will initially employ about 250 workers and Siemens expects
the network to be activated in early 2004, according to Caselitz.
Xu Zhijun, president of wireless products for Huawei Technologies, believes
co-operation between the two companies will greatly boost the commercialization
of the TD-SCDMA system in China.
Huawei Technologies is one of the original members of the TD-SCDMA Alliance
which was established last October.
While Siemens supports both WCMDA and TD-SCDMA, the company has maintained
what it calls its "unique position'' in China's wireless market. "We keep our
position by sticking to the two standards,'' said Caselitz.
Klaus Maler, general manager of the Siemens TD-SCDMA Project, added: "The
Chinese technology is mature and is the most advanced solution for mobile
operators with unpaired frequency bands.''
To support the domestic standard the Chinese Government allocated 155MHZ
frequency resources to the TD-SCDMA last October.
It's widely speculated that the Chinese Government is planning to issue the
3G licences early next year and will consider both domestic and international
standards when issuing them.
China's 3G development got a major boost last Wednesday when Alcatel, the
world's fastest growing mobile infrastructure solution provider, vowed to
enhance R&D in 3G.
According to Philippe Germond, President and Chief Operational Officer of
Alcatel, the company's R&D in 3G will constitute a significant portion of
the US$100 million R&D investment in Alcatel Shanghai Bell (ASB) this year.
In addition to R&D, investment in 3G infrastructure and application
development in China will be increased by US$45 million.
According to Xu Zhiqun, vice- president of ASB, a part of the investment on
R&D will go to China's homegrown 3G standard.
"We firmly believe that China, an emerging hotbed of mobile applications,
will take on a leading role in the field of 3G worldwide,'' said Germond.
"Alcatel, through ASB, is fully committed to partnering with Chinese
operators to develop successful 3G services,'' he added.
Germond predicted wide use of 3G in Europe is likely to come early next year
as more commercial 3G networks will be activated and more 3G enabled handsets
will be available on the market.
