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Pressure to support TD-SCDMA

August 13, 2002

China's telecom equipment developers are calling for concrete government support for home-grown mobile telecom technology and to rule out W-CDMA and cdma2000 in the mainland as it will be too expensive.

The government's hesitation in choosing which standard it will adopt in the coming age of 3G mobile communications is forcing developers of China's 3G mobile technology to speak out.

"China should adopt a technology developed by domestic institutions to avoid again becoming a battle field for overseas companies," said Li Shihe, chief scientist of the China Academy of Telecom Technology, developer of the 3G TD-SCDMA (time division synchronous code division multiple access) standard.

If China uses domestically developed technology, Chinese companies will pay much lower patent fees than those they would pay to European or American patent holders, Li explained.

The home-grown TD-SCDMA is up to international standards and has been approved by the International Telecom Union (ITU).

"Adopting TD-SCDMA means business opportunities - worth hundreds of billions of yuan - will be created for domestic companies," said Li. "This is not a patriotic issue; it's a matter of hard cash."

In June a report in the press has quoted 'industry insiders' who have claimed that Siemens along with its local partner, Datang, has been given the go-ahead by the Chinese government to build a TD-SCDMA 3G network, a technology developed jointly by the two.

Analysts believe that the 3G roll out in China would also depend on which company will operate the new TD-SCDMA network, as China Mobile is expected to opt for the GSM evolution to 3G and China Unicom for its CDMA counterpart. There were claims that China Mobile was interested in using TD-SCDMA in populated areas such as Shanghai.

 


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