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