Siemens and Huawei set up TD-SCDMA venture

Siemens Information and Communication Mobile Group and Huawei Technologies are to form a joint venture focusing on the research...

Siemens Information and Communication Mobile Group and Huawei Technologies are to form a joint venture focusing on the research and development, production, marketing and support of third-generation Time Division Code Division Multiple Access mobile technology and products.

The marketing activities of the new company will be based in Beijing. The company will be established with a $100m capital investment, Siemens Mobile will own 51% of the company and Huawei will own 49%.

The joint venture's marketing efforts will, initially, focus on China. The company will concentrate on the production and marketing of TD-SCDMA equipment and providing cost-effective network offerings designed to meet a wide range of networking requirements.

Siemens Mobile will transfer its global R&D, marketing and sales responsibilities for TD-SCDMA to Beijing. To staff the company, Siemens Mobile is contributing more than 200 employees to the venture in addition to 100 employees that will come from Huawei.

TD-SCDMA, which complements the W-CDMA (Wideband CDMA) standard, is being put through tests in several trial networks in China.

Both partners in the joint venture hope that TD-SCDMA, which can either meet the qualifications for wide-range networking or complement  W-CDMA services according to market demands, will succeed in the Chinese market and convince operators in other countries to adopt the standard.

Written by China Computerworld staff

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