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Motorola to invest in Chinese TD-SCDMA 3G standard

January 10, 2003

China TD-SCDMA TD-SCDMA, the way forward for China

Motorola announced it is willing to back the Chinese TD-SCDMA mobile standard and would invest heavily in the technology.

Motorola executive vice president Eugene Delaney said Motorola was conducting research and development on the technology, but added they were not working with the government on the technology.

Delaney said Motorola are not starting from scratch but would take some months to finalise the technology.

Motorola's decision to invest in TD-SCDMA is exclusively based on the desires of customers and not on the good and bad points of the technology.

"What we're doing is making investments in the technologies that our customers tell us they need to be successful in the marketplace," said Delaney.

He said China's wait and see policy on introducing 3G would allow it to learn from other countries' experiences and mistakes.

The TD-SCDMA Forum said four 3G licenses are likely to be issued by the government this year.

Wu Jichuan, Minister of Information Industry, said the government has no timetable for awarding licenses and that a decision on licenses could only be made after the government considers new telecommunications legislation in March.

Analysts say the Chinese government has backed the TD-SCDMA technology because it would limit the license fees it pays to overseas developers. Qualcomm said TD-SCDMA is based on its CDMA technology and that Chinese manufacturers would need to pay royalties. China disagrees, saying the core technologies behind TD-SCDMA were developed by the Chinese themselves.

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