CATT, CECW and Philips sign Letter of Intent to develop TD-SCDMA mobile terminals

date: September 23, 2001

China Academy of Telecommunications Technology (CATT), CECW Wireless R&D. (CECW) and Philips Semiconductors have signed a Letter of Intent to form a joint venture company that will design and license TD-SCDMA core technology for user terminals in wireless communication and end-user equipment. This will include platform design, chipsets and software for use in and outside China.

The Letter of Intent was signed by Yang Yigang, vice-president of Datang Telecom Group, Sun Jingchun, chief executive officer of CECW and Peter Baumgartner, senior vice president and general manager of inter marketing and sales, Global Market Segment Communications at Philips.

The joint venture will enable the three parties to create successful TD-SCDMA mobile terminal solutions. CATT will provide the joint venture with its TD-SCDMA core technology solutions. Philips provides its GSM/GPRS/UMTS system solution chipset, to minimize time-to-market and CECW will provide protocol stack software and terminal test technology.

The cooperation of the three parties has great significance for the development of 3G communications in China as it marks a step towards the integration of the standard TD-SCDMA, its technology and products. It is also an indication of China's open strategy towards the development of 3G, which it is hoped will act as a catalyst for widespread adoption of TD-SCDMA.

The higher spectrum efficiency offered by TD-SCDMA will enable China to solve conflict between rapid growth in demand for mobile phone services and limited spectrum resources, within a few years, by providing a higher-speed and more reliable wireless broad band data service

As the proposer of TD-SCDMA 3G standard, CATT promotes the support of TD-SCDMA to all outstanding players from both overseas and within China to make the standard widely accepted. CECW will accomplish its strategic integration through this cooperation, which enables them to independently develop a total solution.

For Philips the joint venture enables the company to establish greater technological cooperation with Chinese companies, enabling it to accomplish the integration of capital, technology and people to enrich the product line of its semiconductor division.

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