China drafts road map for CDMA                     push
                      By Sunray Liu                      EE Times                     (06/29/00, 2:53 p.m. EST) 
                      SHANGHAI ? China's road map for a market push into next-generation                     wireless equipment came into focus during the China International                     Telecommunications Exhibition as local equipment makers showed                     code-division multiple-access (CDMA) systems and handsets.
                      The gear, including some commercial products, reflects several years of                     intense development and heavy investment in CDMA and third-generation                     (3G) wireless that could position China's top manufacturers as key market                     players, despite persistent uncertainties about standards, experts at the                     exhibition here said. 
                      The event was sponsored by China United Communication Corp. (Unicom);                     China PTIC Information Industry Corp. and Datang Telecom Technology                     and Industry Group, both based in Beijing; Huawei Technologies Inc. and                     ZTE Corp., both in Shenzhen; Jinpeng Group Co. Ltd. (Guangzhou); and                     Shanghai Bell Co. Ltd. Overseas competitors also displayed CDMA systems                     and terminals. 
                      Beijing has designated Unicom, China's second-largest communications                     carrier, as China's sole carrier of CDMA wireless services. The state-run                     company, which recently became listed on the New York Stock Exchange                     and on the Hong Kong exchange, expects to attract 40 million subscribers                     over the next three years. 
                      Encouraged by Unicom's ambitious CDMA road map, local manufacturers                     have invested several hundred million dollars in CDMA research and                     development. For instance, CDMA pioneer ZTE demonstrated China's first                     commercial CDMA system, which includes a mobile basestation, a mobile                     switch and handsets based on the IS95A/B and cdma2000 1x standards. 
                      ZTE has committed more than 500 engineers to its CDMA and                     third-generation (3G) wireless development efforts, including 300 alone                     working on basestation development. Building on its existing basestation                     development, ZTE has generated algorithms in such areas as fast-power                     control, selector functions and software switching. 
                      Daxiong Xie, general manager of ZTE's CDMA Cellular System Product                     division, said the company is keeping pace with overseas competitors. ZTE                     signed an agreement in October with CDMA developer Qualcomm Inc. (San                     Diego) to cooperate on R&D projects. 
                                 Close cooperation between ZTE and Qualcomm also paved                                the way for an intellectual property agreement between                                Unicom and Qualcomm, as well as subsequent R&D                                agreements between Qualcomm and eight other Chinese                                OEMs. 
                                 ZTE said it launched its CDMA system and received a                                certificate for it from China's powerful Ministry of                                Information Industry (MII) in April. The system taps a                                high-speed packet network platform to provide multimedia                                data services, and it can provide cdma2000 1x service                                through a software upgrade. The upgrade would further                                allow the system to evolve to higher-capacity, cdma2000                                3x services. 
                      To obtain other key technologies for CDMA, ZTE joined such Chinese 3G                     R&D projects as the 863 Project, the China Wireless Telecom Standard                     group and the China 3G Intellectual Property Right Alliance, along with                     international organizations such as 3GPP2. It established a research facility                     in South Korea focusing on CDMA handsets as well as a systems                     development company in San Diego, near Qualcomm. 
                      "We have over 20 experienced engineers in South Korea who have helped                     us develop our first CDMA handset," Xie said. He said the company's U.S.                     research facility has joined the Telecommunications Industry Association                     (Arlington, Va.), an industry standards group. "That's why Chinese                     manufacturers have achieved so many breakthroughs in [such] a short                     period," Xie said. 
                      Broad development
                      Other local manufacturers have completed CDMA system development.                     Huawei, the largest telecommunications equipment supplier in China,                     recently announced that its M800 CDMA core network had passed a                     comprehensive MII test. The system could be ready for commercial use in                     several months. 
                      PTIC is a state-run industrial group with revenue from its subsidiaries and                     joint ventures approaching $4 billion. Its regional subsidiaries, PTIC Capitel                     Group (Beijing) and Eastern Communications Co. Ltd. (Hangzhou),                     respectively rolled a CDMA basestation system and a switching system at                     the exhibition. 
                      China's market potential and the progress of Chinese manufacturers have                     attracted many foreign manufacturers seeking to form strategic                     partnerships with local companies. Jinpeng Group, a top local manufacturer                     founded by several local research institutes and companies, is focusing on                     mobile switch systems. It launched a GSM/CDMA mobile switch system                     that has gained Jinpeng market share and the attention of key foreign                     players. Jinpeng and Motorola Inc. are working jointly on switching systems                     and basestations. 
                      Datang, a public company spun off from the China Academy of                     Telecommunications Technology, began research and development for                     China's 3G standard based on its synchronous CDMA access technology in                     1998. The International Telecommunication Union (Geneva, Switzerland)                     certified Datang's time-division synchronous CDMA system as one of three                     3G standards. 
                      TD-SCDMA is designed to aid in the migration from GSM to 3G. Several                     global telecom companies have adopted the technology. Siemens AG                     announced its support for the standard and is working with Datang and                     other Chinese R&D partners. 
                      An industry source said Datang is expected to launch trials of the format                     soon and to introduce TD-SCDMA cellular phones by the end of the year. 
                      Aside from its TD-SCDMA work, Datang has announced IS-95-based CDMA                     products, including a CDMA mobile switch and handset. The company said                     it manufactured all chips for the systems. 
                      Analysts here said CDMA technology offers a unique opportunity for                     emerging Chinese telecom manufacturers. Some observers said China could                     eventually establish one of the largest CDMA industries in the world, if the                     government and carriers such as Unicom offer sufficient incentives for                     growth over the next few years. 
                      Despite promised trials of CDMA 1x systems next year, followed by planned                     deployments of the technology, some uncertainties persist as the industry                     awaits a government decision on the pace of deployment. Most of the                     leading manufacturers at the exhibition displayed General Packet Radio                     Systems, for upgrading current GSM networks, as well as wideband CDMA                     systems. 
                      Some experts here have proposed that the government divide the                     potentially huge Chinese market into as many as three sectors, covering                     cdma2000, W-CDMA and the country's homegrown TD-SCDMA                     technologies.  |