Siemens Information and Communication Mobile and Huawei Technologies, today signed the contract for joint development of 3G/TD-SCDMA mobile communication technology, the Chinese supported 3G mobile communication standard TD-SCDMA.
The joint venture will develop, manufacture and market TD-SCDMA technology, for which both companies are together investing more than $100 million USD. The new company will be based in Beijing. Siemens mobile will hold 51 percent of the joint venture, and the Chinese telecommunications company Huawei Technologies 49 percent. Both expressed confidence that their combined strength and know-how would give TD-SCDMA a powerful push for market success in China.
Siemens mobile is contributing more than 200 employees, Huawei around 100. In several months time, the joint venture will have 350 employees.
The mobile standard TD-SCDMA, which complements GSM and W-CDMA, is unique among cellular standards in that it uses a single channel rather than duplex channels for sending and receiving voice and data. Time Division enables a single channel to switch between modes.
The Chinese Ministry of Information Industry allocated a 155 MHz spectrum to TD-SCDMA in October 2002, thus paving the way for the commercial use of the standard in China. Both partners in the joint venture hope that TD-SCDMA will succeed in the Chinese market and convince operators in other countries to adopt the standard.
Both companies bring to the joint venture decades of experience in telecommunication technology. Siemens started its development in TD-SCDMA back in 1998 and has to date invested more than EUR 170 million in this technology. With several test networks running in China, Siemens has proved that this technology is fast approaching market maturity.
“We are looking forward to working together with Siemens mobile in the future, a leading mobile communications company,” said Yafang Sun of Huawei. “The cooperation will drive forward the commercial use of TD-SCDMA. Both companies will also be able to optimize their development costs.