Samsung and Eastcom form 3G WCDMA venture
April 22, 2004
South Korean telco Samsung Electronics has formed a jointed venture with China's Eastern Communications to develop WCDMA technology. The new company, Hangzhou Samsung Eastcom Network Technology, will be based in the city of Hangzhou in China, also the base of Eastcom.
The two companies will invest US$15 million in the new company, which has a registered capital of US$6 million. Samsung will hold a 70% stake in the company and Eastcom will hold the remaining 30%.
"This joint venture is a major step in our deployment in preparation for the launch of the 3G in China," said Samsung Electronics China spokesman Li Wei.
China is the fastest growing mobile phone market but has yet to issue licenses for 3G mobile networks. The country's six telecommunication operators are testing three 3G technologies, WCDMA, CDMA2000 and the Chinese developed TD-SCDMA. All three technologies are expected to be deployed in China in the future.
The deal will allow Samsung to enter the lucrative mobile phone market in China as well as help it develop products for the European market. Samsung has been supplying CDMA2000 equipment in South Korea but has relatively less experience in WCDMA, which is backed by Europeans.
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