ITRI, China's Datang Telecom to Open TDSCDMA Test Network in Taiwan

Taipei, June 5, 2009 (CENS)--The Taiwan government-backed Industrial Technology Research Institute (ITRI) and the mainland China government-held Datang Telecom Technology Co. yesterday signed a letter of intent to co-open a network in Taiwan to specifically field test and verify Taiwan-made TD-SCDMA equipment.

The cooperation aims at the mainland's lucrative 3G TD-SCDMA market, which has begun taking shape since the mainland launched the service last month. Industry watchers estimate the mainland will have at least 300 million 3G subscribers in 2013.

TD-SCDMA is a 3G format spearheaded by the mainland, rivaling WCDMA and CDMA2000 dominated by the West.

However, ITRI executives pointed out that so far only around one million mainland Chinese individuals had subscribed 3G service mostly thanks to shortage of supply chains of end-user equipment in the mainland. They noted Taiwanese equipment manufacturers are good at consumer-premise products and the test network would cut Taiwanese equipment suppliers cost by 20-30% as it allows the manufacturers to complete test and verification on the island before shipping to the mainland.

People familiar with the cooperation pointed out that the island's telecom-service providers including Far EasTone Telecom Co., Ltd. and Vibo Telecom Co., Ltd. would take part in the work of setting up the test network to offer a test platform to the island's mobile-phone, wireless-chip and networking-equipment suppliers.

ITRI President John-see Lee pointed out that his organization plans to set up test network for Long Term Evolution (LTE) cellular equipment based on the anticipation that WiMAX and TD-SCDMA would end in LTE technology, which he believed would become mature in one to two years.

In a separate case, F.H. Cheng, vice chairman of the Taiwan Electrical and Electronic Manufacturers' Association, signed an agreement on behalf of his organization with his counterpart from a Beijing-based telecom association to carry out an ambitious plan to furnish several major cities in the mainland with wireless connection capability. Cheng noted that the association represents 4,000 manufacturers, who can supply the mainland needed quality equipment.