TD-SCDMA has no place in China - report

date: June 18, 2002

The Nortel Networks predicts by 2005 the infrastructure based on CDMA will account for 62 percent of the telecommunication market, with CDMA2000 and WCDMA to go half-and-half. However, the Datang's TD-SCDMA was not mentioned regarding the share of market.

According to PascalDebon, CEO of the Global Nortel Networks, European operators have all purchased necessary equipment to create WCDMA network, planning to provide new services next year. In North, South America and Asia, 13 CDMA2000 networks are preparing to start operations. Even in European market, which is dominated by GSM, CDMA2000 also seizes an opportunity to build up a CDMA2000 commercial network in Romania.

Compared with CDMA2000 and WCDMA, TD-SCDMA seems to have been landed in a difficult plight and is now seeking everywhere for new partners, but until now it has failed to produce any new chip.

For TD-SCDMA, only need to ask the Datang two questions: First, when TD-SCDMA hand phones can make its debut? Secondly, when Chinese operators are going to create TD-SCDMA network?

Nowadays most operators are facing challenges due to the slump of the telecom sector. In order to cater to operators, the Nortel Network has transferred its key business to cost-cutting in 3G markets. Under such circumstances, which operator would like to choose TD-SCDMA for partnership that hasn't produced any chips, and which operator can cast aside CDMA2000 and WCDMA, which have already achieved great success in Japan and ROK?

Among China's operators, China Unicom finally made its best choice---CDMA2000 when its CDMA network was upgraded to 3G. China Mobile also shows great interest in WCDMA. It gave great support to the foreign-shared company---Yumeng Telecom, which was set up for resolving problems of WCDMA terminals.

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