Buoyed by the enormous telecom potential in China, Siemens (China) Mobile vowed to enhance its research and development (R&D) on third generation (3G) wireless telecommunications in the world's most populous market.

"We will move more of our R&D forces to China to enhance and accelerate our research on 3G," Gao Yan, senior vice-president of Siemens (China) Mobile said in an recent interview with China Daily.

As the world largest telecommunications market, China has become a "must-be-there" market for almost all the 3G equipment providers and terminal producers.

Siemens touts itself as one of the best 3G solutions providers as it gets involved in two of the three recognized 3G standards -- European-based WCDMA (wideband CDMA) and the Chinese homegrown TD-SCDMA (time division synchronous code division multiple access).

According to Gao, the firm is taking the lead in the deployment of a WCDMA network as seven of the total 12 telecom operators worldwide have adopted its 3G solutions.

"We would like to invite more European telecom operators to China to share their experiences with Chinese telecom operators with their 3G development," Gao said.

As for TD-SCDMA, though the rolling out of the standard is currently confined to the Chinese market, European telecom operators are very "optimistic" about the Chinese standard, Gao said.

"We believe the commercialization of the TD-SCDMA will be made available by next year," he said.

Siemens has shown a strong determination to keep its leading edge among foreign mobile contenders here by announcing further investment in the country's 3G phone networks.

A joint-venture memorandum was signed in late August by Siemens Mobile and Huawei Technologies to create TD-SCDMA developments with the home- grown 3G standard.

With a US$100 million total investment, Siemens would hold 51 percent of any new company.

The venture would jointly develop and promote TD-SCDMA infrastructure in China.

TD-SCDMA is the most advanced solution for mobile operators with unpaired frequency bands.

Siemens expects that network deployment of TD-SCDMA can start by early 2004 in China.

"We keep our position by sticking to the two standards," said Gao, a situation that enables Siemens to have an "unique position" in China's wireless market.

It is widely speculated that the Chinese Government is planning to issue 3G licenses early next year, and that China regulators will consider both domestic and international standards when it issues them.

So far, Siemens has invested US$170 million directly in TD-SCDMA.

"The 3G market is getting ripe," Gao said.

He expects that a batch of new WCDMA terminals will be introduced to the market at the end of the year.

Siemens is reported to occupy a 20 percent of 3G market share worldwide.

(People's Daily October 8, 2003)