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Chinese government grants $72.5M for TD-SCDMA technology
Posted: 03-Sep-2003 [Source: TD-SCDMA]

[Chinese government to promote further research on homegrown TD-SCDMA 3G technology which may delay granting of 3G licenses until technology matures.]

Chinese telecom equipment maker Datang Telecom revealed government plans at the TD-SCDMA Summit to financially back an indigenous mobile phone technology that could limit and delay opportunities for competing western systems.

The government would allocate 600 million yuan ($72.5 million, $1=8.277 yuan) in 2003 to spur research by domestic firms into the homegrown third-generation mobile technology, Datang Telecom Technology & Industry Group Vice President Yang Yigang told Reuters on the sidelines of a seminar.

"The government has promised to give no less than 600 million yuan for the research and development of TD-SCDMA," he said, adding it would be split among several Chinese firms. Those include Huawei Technologies Co., ZTE Corp and Legend Group.

Analysts said the subsidy signalled the government was serious about launching TD-SCDMA in China, which has more mobile users than any other country, and would probably delay the introduction of 3G licences until the new technology matured.

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