The coupling between the GSM Association (GSMA) and the time division synchronous code division multiple access (TD-SCDMA) Forum will improve the compatibility and interoperability between the two 3G standards, industry experts say.

"Though the real effect of the alliance is yet to be further confirmed, the co-operation is very positive," said Chen Jinqiao, director of the China Academy of Telecommunications Research under the Ministry of Information Industry.

GSMA, a global trade association representing over 630 GSM and WCDMA mobile operators worldwide, signed an agreement with TD-SCDMA Forum last Tuesday in a bid to co-ordinate the development of the two 3G standards. WCDMA is the 3G-upgrade for GSM.

The TD-SCDMA Forum was established in China to promote the development of the domestic system.

"It is critical for us to work together to establish all standards and all interoperability issues," said Craig Ehrlich, GSMA chairman.

Both recognized as 3G standards, WCDMA exploits "paired" spectrum, with users speaking or transmitting data on one radio channel and hearing responses or receiving data on a second radio channel.

While, TD-SCDMA transmits and receives data in different time slots on "unpaired" radio channels.

The alliance will help promote interoperability and international roaming between the two technologies, maximizing the economies of scale for the benefit of end-users, operators and manufacturers, Ehrlich said.

According to the agreement, GSMA will assist TD-SCDMA Forum to promote its standard worldwide.

And both sides are expected to carry out discussions and co-operations in many areas, such as international roaming, network interoperability and operational strategies.

In addition, the two sides are dedicated to encouraging 3G equipment manufacturers to develop core networks that support both WCDMA and TD-SCDMA, as well as the research and development of dual-mode terminals.

"We hope China can join the global community of GSMA during the third generation," Ehrlich said.

With more than 40 operators already delivering advanced mobile services to customers in 22 countries and territories across Asia, the Middle East and Europe, WCDMA has already gained a strong market foothold, he said.

Delivering a wealth of innovative new services to consumers such as video on demand, high-speed multimedia and mobile Internet access, WCDMA exploits the potential of content rich information and communication around the world.

WCDMA also brings substantially enhanced capacity, quality and data transmission speed.

As for the practical application of the program, Ehrlich believes that as the market becomes more mature, demand will drive development.

WCDMA is the choice of 98 per cent of operators who have been granted access to the 2GHz band, which has been identified as the 3G band by the International Telecommunications Union for 3G.

"All 70 networks that will be delivering WCDMA services by the year's end are utilizing the 2GHz band in which China intends to deploy 3G," said Rob Conway, GSMA's chief executive officer.

According to Conway, growth is expected to accelerate from the current WCDMA global customer base of more than 5 million.

"The greater availability of WCDMA handsets in China's 3G trials program is a further reflection of WCDMA's superior maturity in the 2GHz 3G spectrum," said Conway.

Ehrlich said: "The opportunities for China with WCDMA are immense."

For example, operators can benefit from international roaming and economies of scale; manufacturers gain equal access to global markets; and ultimately, consumers enjoy value from a greater variety of globally compatible products and services.

Nevertheless, the Chinese Government has been cautious over the release of 3G licences.

"The alliance is likely to drive the Chinese Government to roll out 3G licences," Chen said.

"The alliance indicates that TD-SCDMA is gaining increasing attention from the foreign telecoms equipment operators and makers."

Before the alliance, foreign telecoms equipment makers such as Siemens and Nortel were individually working with TD-SCDMA Forum.

The home-grown standard should work harder to develop, Chen said.

The Chinese Government, to support the domestic standard, allocated 155MHz frequency resources to TD-SCDMA in October 2002.

It is predicted that TD-SCDMA technology will go into large-scale commercial use later this year or in early 2005.

"As we look forward to the Beijing Olympics, the opportunity for China to serve a worldwide audience, and many millions of inbound visitors, with compelling next-generation mobile services has never been so apparent," Ehrlich said.

(China Business Weekly June 24, 2004)