Asia Pacific Watch

November 7, 2002
TD-SCDMA frequency allocation "a milestone": Siemens

MUNICH, GERMANY AND CHINA -- To the delight of Siemens Information and Communication Mobile (Siemens mobile), its mobile radio strategy in the Chinese market has been fully confirmed, following the allocation of frequencies for TD-SCDMA (Time Division-Synchronous Code-Division Multiple Access) 3G standard in China.

The allocation of frequencies for TD-SCDMA in China marks "a milestone in the standard's development," said Lothar Pauly, member of the Group Executive Management of Siemens Information and Communication Mobile. Siemens mobile has been developing this 3G technology jointly with the China Academy of Telecommunications Technology (CATT/Datang) since 1998. The two partners are the only companies able to supply Chinese mobile radio operators with TD-SCDMA network infrastructure as early as mid 2003.

Siemens mobile has already invested several hundred million euros in developing TD-SCDMA. Siemens just recently announced the injection of a further 50 million in the current fiscal to vigorously advance the standard's development. Some 300 Siemens engineers are working on further developing TD-SCDMA based on GSM; around half of these are employed in the TD-SCDMA development and production centers in Shanghai and Beijing. A TD-SCDMA test network operated jointly by Siemens mobile and CATT/Datang in Beijing since October 2001 is working perfectly. Two more test networks are now being set up in the Chinese cities of Chongquing and Chengdu. The partners have demonstrated the smooth functioning of both data and voice transmission in a number of test runs presented to representatives of the Chinese government and mobile radio operators. As the sole equippers, Siemens and CATT/Datang can supply Chinese mobile radio operators with a TD-SCDMA network infrastructure as early as mid 2003.

The recent allocation of frequencies for TD-SCDMA by the Ministry of Information Industry (MII) was welcomed by Siemens mobile all the more. A total of 155MHz has been scheduled for TD-SCDMA -- a positive proof from Siemens' viewpoint that TD-SCDMA will play a major role in China's 3G market. The recently formed Chinese industry alliance for the development of TD-SCDMA products is regarded equally as positively. This was set up last week at the instigation of the Ministry of Information Industry (MII), the Ministry of Science and Technology (MOST), and the State Development Planning Commission (SDPC).

TD-SCDMA is a 3G standard officially recognized by the 3GPP (3G Partnership Project) and the International Telecommunication Union (ITU). Based on GSM, TD-SCDMA gives direct access to 3G mobile radio. Its flexible and efficient use of radio frequencies makes TD-SCDMA suitable for wide-coverage applications and use in conurbations and densely populated areas with high levels of mobile radio traffic.

TD-SCDMA is, like W-CDMA (Wideband Code Division Multiple Access), an integral part of the UMTS standard. TD-SCDMA and W-CDMA, which have both been developed from the GSM standard, complement one another and are fully compatible. Therefore, TD-SCDMA has the potential to develop out of China into a worldwide standard. "With the development of TD-SCDMA we're excellently positioned in the Chinese mobile radio market, currently the world's biggest with close on 190 million mobile radio users. The allocation of the frequencies is a milestone for us and proof we've been pursuing the right strategy all these years," said Lothar Pauly.