Alcatel Shanghai Bell (ASB), Alcatel's joint venture in Shanghai, is close to wrapping up a deal with a domestic company to develop TD-SCDMA (Time Division Synchronous Code Division Multiple Access), the Chinese homegrown 3G standard.

"The negotiation is still going on and we expect the result will come out very soon," said Qiu Ronghong, vice-president of ASB.

"We don't have the exact timetable for the co-operation, as ways of co-operating are being discussed," she said last week in Shanghai.

The company signed an agreement with Shanghai Media Group (SMG) last week in Shanghai to jointly develop video applications.

SMG is to provide 11 channels of TV programs to ASB, including news and entertainment.

As a result, mobile phone subscribers in the Chinese mainland, and Chinese communities in Japan and Australia, will be able to watch TV programs on phones supported by ASB's 3G network.

The transmission speed for the video applications including real-time TV programs, video browsing and video on demand will reach 384 kilo bits per second.

"Multimedia services will be a key element for the success of 3G. The co-operation with SMG will strengthen our leading position in that particular area," said Gerard Dega, president of ASB.

Alcatel has made a strategic shift from its traditional role as a carrier equipment supplier to that of a communications solutions provider this year. The company's strategy is to promote value-added, end-to-end multimedia applications in fixed, mobile and private networks. The strategy is gaining considerable momentum.

To better tap the market, ASB has already signed a memorandum of understanding this month with Shanda Networking Co Ltd, China's leading online games operator, to develop integrated broadband solutions for telecom service providers.

According to the agreement, ASB will combine its digital subscriber line (DSL) solution with Shanda's online gaming suite to deliver a broadband offering to telecom service providers in China.

Meanwhile, ASB will also provide a consultancy to telecom service providers to market the gaming applications to end-users.

(China Daily June 28, 2004)