Datang Mobile Communications Equipment Co Ltd has vowed to lead the way with the commercialization of its TD-SCDMA (time division synchronous code division multiple access) early next year.

The homegrown TD-SCDMA, together with the US-based CDMA2000 and Europe-based WCDMA (wideband CDMA), are the three major international standards for 3G mobile telecommunications.

"This year is of crucial importance for us in commercializing our TD-SCDMA," said Tang Ru'an, chief operating officer of Datang Mobile Communications Equipment Co Ltd.

He said an experimental network for TD-SCDMA mobile phones has been deployed in Southwest China's Chongqing Municipality and Chengdu, capital of Southwest China's Sichuan Province.

Trial operation is scheduled to begin during the coming traditional Chinese Lunar New Year, which falls on February 1.

"We are keeping in close touch with many telecom operators to develop our terminal handsets," Tang said.

In an interview with China Daily, he said: "The commercialization of 3G mobile phones supporting Datang's TD-SCDMA will begin no later than June next year."

He said a joint venture will be inaugurated on January 20 in Beijing by Datang, Phillips and Samsung.

It aims to finish work on personalized TD-SCDMA terminal handsets at the end of this year.

According to the company's timetable, Datang will build up its 3G networks and TD-SCDMA chips for mobile phones by the end of this year.

To accelerate TD-SCDMA's commercialization progress, Datang initiated an industry alliance last October with seven other telecom vendors to produce TD-SCDMA equipment sets.

The seven are Soutec, Huali, Huawei, Legend, ZTE, China Electronics Corp and China Putian. They are chip makers, mobile phone vendors and network equipment manufacturers.

"We are considering expanding our alliance very soon," said Yang Hua, general manager of the Marketing Department of Datang.

Third-generation mobile telecommunications promises a new line of broadband services such as real-time video transmission and fast Internet service.

Analysts point out that, as a strategic telecommunications technology, the TD-SCDMA is likely to flourish, enjoying a huge telecom market of 1 trillion yuan (US$120 billion).

A recent McKinsey & Company report forecast that Datang will account for 45 percent and 10 percent of TD-SCDMA market share in domestic and overseas markets respectively.

"We are staying in contact with the country's major telecom operators with regard to their choices for 3G standards," said Yang.

China Mobile and China Unicom, the country's dual mobile carriers, are yet to announce that they will adopt TD-SCDMA technology in the 3G age.

Some experts have said China Mobile and China Unicom are likely to choose WCDMA and CDMA 2000 for their 3G development.

But it is also widely believed that if the government issues new mobile licenses to other telecom carriers, TD-SCDMA is likely to be used by the new mobile carriers.

"The main reason is that all the three standards approved by the ITU (International Telecommunication Union) have not been processed into commercialization," Yang said.

Analysts pointed out that weak market demand is the main reason for the slow 3G development.

For example, only 13.86 percent of Chinese people have mobile phones, revealing a sharp gap compared with developed countries.

(China Daily January 16, 2003)