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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (33202)	3/6/2003 11:24:49 AM
From: Eric L	Respond to of 196660

China Mobile TD-SCDMA Tests >> China Mobile Unveils Surprise TD-SCDMA Success CommsDay Asia 06/03/03 China Mobile has successfully trialled a time-division synchronous code-division multiple access voice network developed by Datang and Siemens, according to Datang spokesperson Yang Hua. The Chongqing-based test could pose a threat to widespread Chinese adoption of CDMA and the US$43 billion in annual sales by overseas vendors such as Ericsson and Motorola. "The tests are baby steps," Norson Telecom Consulting analyst Allen Chen told Bloomberg. "What's interesting is China Mobile's involvement in the trials," he added, speculating that China might pressure its larger operators to adopt TD-SCMDA. State carrier China Railway Communication is conducting its own TD-SCMDA trials in Chengdu. Siemens and state-backed Datang spent two years developing the standard, which triples the amount of voice and data content that can be squeezed into a slice of spectrum versus current dominant standard GSM. Aside from nationalist issues relating to purchasing from overseas vendors and paying CDMA royalties to US firm Qualcomm, TD-SCDMA offers the prospect of local control over licensing and manufacturing, ultimately making the standard cheaper in China than competing technologies. Beijing has already demonstrated a propensity for stepping in to mandate use of a technology, with the government having a role in China Mobile rival China Unicom's Qualcomm-based network. Unicom operates a small CDMA network, the subscribers of which are vastly outnumbered by its GSM user base. China has 212 million mobile subscribers. Observers are also wary of China's reluctance to issue 3G licenses. "It's not a matter of when licenses should be issued," outgoing Ministry of Information Industry head Wu Jichuan said in December. "It's a matter of when the technology is mature. If there's a market and consumer demand for 3G, then we'll give support." That mature technology might just be TD-SCDMA, according to industry speculation. China Mobile's stock fell 4.5% on the news. "Investors will feel uncomfortable if the company is secretly testing some unproven technology," explained SGY Asset Management manager Winson Fong. "There's enough confusion in the Chinese telecom market already, with all sorts of illegal price cuts and rumours." Meanwhile, local vendors Huawei Technologies and ZTE Corp. have said they are developing network gear based on the standard, while Samsung Electronics and Philips are working on handsets. "I think the first half of 2004 is a realistic target to develop the handsets," said Samsung's head of China telecom research, Wang Tong. << - Eric -