It would be better if TD worked. How are they supposed to get around this and issue competitive 3G licenses?
Here's this summer's reiteration of the attitude:
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Homegrown 3G boosts telecom growth
Last Updated(Beijing Time):2008-07-14 08:39
By Hu Hongjun
TD-SCDMA is an international standard on 3G put forward by China, which was formally adopted by the International Telecommunication Union (ITU) in 2000 and became one of the globally accepted international standards for 3G Mobile Communication.
Experts pointed out that it was the first time for China to bring forward a complete set of standards for communication system and get approved internationally, which filled up a blank in the 100-year telecommunication history of China.
An insider told the reporter that the 3G Mobile Communication Standard with independent intellectual property rights gradually guided China onto a road leading to independent innovation, making it possible for China to get the chance to set up a TD-SCDMA industrial chain based on the international standard developed by China itself by use of the independent intellectual property rights. It would have direct influences on the quality of the development of the communication industry as a whole in China, the sustainable development of the telecommunication industry in China, the realization of a transformation from one of the major countries in terms of telecommunication to a telecom great power, and on the development speed of the national economy of China in the future.
As mobile communication is a national strategic industry, the application of the new generation technology standard in such a field will not only bring new economic growth point for both manufacturers and operators but also provide a new engine for the development of related industries like semiconductor, micro-electronics, equipment manufacture, raw materials, precision instrument processing, chips, and software.
There have been certain less developed sectors, such as chips, testing instruments, and meters, during the development process of the information communication industry in China. However, by boosting up the industrialization of TD-SCDMA, the strength, especially the capability to conduct independent R&D, of China in such fields has got obviously enhanced as it was driven by the TD-SCDMA technology. Domestic companies have developed world-leading products including TD-SCDMA cell-phone chips and testing instruments, etc.
Leaders in relevant department expressed that the development of TD-SCDMA had brought along the development of those weak sectors and fields in the information communication industry of China. Up till now, domestic companies have mastered main intellectual property rights on TD-SCDMA and established a complete industrial chain covering system equipment, network management, core chips, and related key parts.
"In the past, all such things were not imaginable at all. In the era of first and second generation telecommunication, most industrial sectors hadn't appeared in China." As pointed out by certain experts, it is for sure that without TD-SCDMA, it would take a quite long period of time for China's technological strength in such fields to reach the present level in rather a long time.
For a long time, one of the important reasons for the rather weak capability of China to conduct independent innovations in the information communication industry is that China has not established a scientific system of independent innovation yet.
Certain experts noted that valuable experiences had been accumulated in the development process of TD-SCDMA. While exerting the government's functions for purpose of macro control, the industry must be market-oriented so as to make it possible for the TD-SCDMA technology to keep up with demands in the market. By insisting on stepping onto the development road of opening up and innovation, the progress of technology and the industry would be accelerated through wide international cooperation on the premise that the initiative on technological development is under control, thus having created favorable conditions for the global application of TD-SCDMA in the future. The in-depth implementation and fulfillment of the scientific outlook on development will make it possible for the TD-SCDMA technology to step towards maturity solidly and steadily.
On such a basis, China has preliminarily set up a market-oriented independent innovation system of information industry technology, which takes enterprises as main parts while combining production, study, research, and application together. A batch of enterprises engaged in the development of chips for mobile communication has emerged. Many domestic communication companies, such as Datang, Huawei, ZTE, and Potevio, have accumulated precious experiences and industrialization productivity in such a field. Chen Shanzhi told the reporter that when organizing and promoting the industrialization of TD-SCDMA, various parties paid great attention to the establishment of an industrial chain as a whole and industry groups as well as the coordinated advancement of the whole industry in each field. Thus, the establishment and development of the independent innovation system for the information communication industry as a whole in China has been accelerated.
Experts in the industry expressed that driven by the TD-SCDMA industry, a Chinese-featured system of independent technology innovation for the information communication industry, which conformed to the actual situation in China, had been initially set up. Such a system would play an important part in the development of China's information industry in the future and offer a powerful guarantee for the sustained technological innovation in China's information communication industry. In such a sense, the existence of TD-SCDMA will have immeasurable impacts on the successful realization of China's "Overtaking Strategy".
Dr. Feng Fei from the Development Research Center (DRC) of the State Council commented, "During the transformation from technology to productivity, standards always play a prominent function. The strategic value of TD-SCDMA as an international standard will never be excessively emphasized. TD-SCDMA will surely become a model in revitalizing China with independent intellectual property rights and standards."
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