Nanjing Putian CDMA venture delayed
SHANGHAI, March 1 (Reuters) - China's listed Nanjing Putian Telecommunications Co has delayed plans for a joint venture with a Japanese firm to produce CDMA mobile phones following a government freeze on the U.S. technology, a company official said on Wednesday.
Last week, Beijing suspended plans by two state telecoms companies to build networks using Qualcomm's <QCOM.O> code division multiple access (CDMA) standard, and contract negotiations with equipment suppliers have been postponed.
China Unicom, the country's number two telecoms carrier, had been planning to roll out CDMA networks on a huge scale this year. A carrier backed by the army, Century Mobile Communications Corp, already operates networks in several cities.
"Our project is now on hold because Unicom's CDMA project was suspended," said an official of the Shenzhen-listed Nanjing Putian. "Unicom will be our major handset buyer if the project starts operation." Nanjing Putian had planned a 100 million yuan ($12.08 million) venture with Japan's Toshiba Corp <6502.T> and a Hong Kong company in a deal originally scheduled to have been signed on Tuesday, the Shanghai Daily newspaper said.
Nanjing Putian officials said the Hong Kong holding company was called Wang Shi in Chinese, but they could not give an English name.
"We do not know when the project might resume. It depends on the government," the Nanjing Putian official said. "We must apply for approval from the Minstry of Information Industry for the project before further action."
Under the planned joint venture proposal, Nanjing Putian would own 34 percent of the new firm while Toshiba and the Hong Kong company would each hold 33 percent stakes, Shanghai Daily said. ($1=8.278 Yuan)
((Shanghai Newsroom: (86) 21-6355-4009; Fax 21-6355-5015 email:reutersh@uninet.com.cn))
REUTERS |
