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A memorandum of co-operation was wrapped up yesterday between Siemens Mobile and Huawei Technologies to build a TD-SCDMA joint venture to explore the development of the home grown third-generation (3G) wireless communications standard.

"We are pleased to form the co-operation and we are well prepared to strengthen our China commitment,'' said Christoph Caselitz, general manager of the Networks Department of Siemens Mobile.

Total investment in the Beijing-based joint venture will reach more than US$100 million, with Siemens owning 51 per cent and Huawei Technologies 49 per cent. The project will initially employ about 250 workers and Siemens expects the network to be activated in early 2004, according to Caselitz.

Xu Zhijun, president of wireless products for Huawei Technologies, believes co-operation between the two companies will greatly boost the commercialization of the TD-SCDMA system in China.

Huawei Technologies is one of the original members of the TD-SCDMA Alliance which was established last October.

While Siemens supports both WCMDA and TD-SCDMA, the company has maintained what it calls its "unique position'' in China's wireless market. "We keep our position by sticking to the two standards,'' said Caselitz.

Klaus Maler, general manager of the Siemens TD-SCDMA Project, added: "The Chinese technology is mature and is the most advanced solution for mobile operators with unpaired frequency bands.''

To support the domestic standard the Chinese Government allocated 155MHZ frequency resources to the TD-SCDMA last October.

It's widely speculated that the Chinese Government is planning to issue the 3G licences early next year and will consider both domestic and international standards when issuing them.

China's 3G development got a major boost last Wednesday when Alcatel, the world's fastest growing mobile infrastructure solution provider, vowed to enhance R&D in 3G.

According to Philippe Germond, President and Chief Operational Officer of Alcatel, the company's R&D in 3G will constitute a significant portion of the US$100 million R&D investment in Alcatel Shanghai Bell (ASB) this year.

In addition to R&D, investment in 3G infrastructure and application development in China will be increased by US$45 million.

According to Xu Zhiqun, vice- president of ASB, a part of the investment on R&D will go to China's homegrown 3G standard.

"We firmly believe that China, an emerging hotbed of mobile applications, will take on a leading role in the field of 3G worldwide,'' said Germond.

"Alcatel, through ASB, is fully committed to partnering with Chinese operators to develop successful 3G services,'' he added.

Germond predicted wide use of 3G in Europe is likely to come early next year as more commercial 3G networks will be activated and more 3G enabled handsets will be available on the market.

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