Daily News 2004/02/20

Prediction: Wireless video solution total value will reach 5 billion dollars in 2008

　　An research report will be issued by Strategy Analytics in the near future, the name is "The competition strategic of wireless video content". The main content of the report is to analyze how to provide the video content services for cell phone user by mobile service provider. At present, the providers are offering the video content to the user through the network of relative low-speed, Strategy Analytics estimates that there will be 150 million users to accept the video content service (include sports, film and adult's content) via the wireless in the whole world until 2008. Its market total value will reach 4,700 million dollars.

Siemens and HUA WEI established a co-partnership company for TD-SCDMA business

The gross investment exceeds 100 million dollars, Siemens accounts for 51%, HUA WEI accounts for 49%

　　Siemens information and mobile communication group signed a contract with HUA WEI formally in Beijing recently, to set up a co-partnership company together. The new company will focus on the development, producing, selling and service of TD-SCDMA technology and products, in order to drive the further development of TD-SCDMA. The gross investment of this co-partnership company exceeds 100 million dollars, among them Siemens Mobile accounts for 51% shares and HUA WEI company accounts for 49% shares respectively.

　　The CEO of Siemens, Mr. Lothar Pauly, and Ms. Sun Yafang, the director of HUA WEI, expressed confidently, "the establishment of the co-partnership company will bring very great push to TD-SCDMA standard success in China".

　　As the supplementing of WCDMA, TD-SCDMA technology and products have been already ripe. China Ministry of Information Industry distributed 155 MHz frequency channels for TDD in October 2002. This creates the precondition for the use of TD-SCDMA standard in China. Two companies hope that the service providers of other countries can adopt this standard progressively through TD-SCDMA successful experience in China too. Both sides think that TD-SCDMA standard can already have been used to satisfy the demand of network construction and can combine W-CDMA network as a kind of scheme of supplementing according to some market demand too.

　　The marketing activity of the co-partnership company relies mainly on Chinese market tentatively, produce and sell TD-SCDMA wireless access network equipment mainly. At present, TD-SCDMA system equipment is carrying on the test in China, it is estimated that the co-partnership company can offer the commercial product to the service provider in 2004, and will join the 3G testing this year. The products of the co-partnership company can satisfy the different demands from consumer in different levels.

　　What Siemens Mobile and HUA WEI brought for the co-partnership company is each long-term abundant experience in the fields of telecommunications. Siemens Mobile started the research and development of TD-SCDMA technology in 1998, accumulated investment already reached 170 million dollars. At present, a lot of test networks of China have already indicated that TD-SCDMA technology has already reached the commercial maturity. Siemens Mobile will put 200 staffs into the new company, and HUA WEI's are 100.
Mr. Pauly said, "We are very glad to find HUA WEI such a cooperative partner. In the field of TD-SCDMA, we have the same prospect and passion. We will found TD-SCDMA success in the Chinese market together. Siemens can offer TD-SCDMA and W-CDMA two kinds of technology to the service providers of China at same time. Becoming the leader in China market is the set objective of Siemens Mobile."

　　Director of HUA WEI, Ms. Sun YaFang expressed, "The cooperation with Siemens will bring us to achieve the purpose of putting out TD-SCDMA's solution of commercialization fast because Siemens is a leader in TD-SCDMA technology. Can reduce the research and development cost of both sides effectively at the same time".