Expert View

November 7, 2002
Siemens ready to license TD-SCDMA intellectual property

Pradeep Chakraborty

MUNICH, GERMANY AND CHINA -- Recently, the Ministry of Information Industry (MII) in China allocated a total frequency of 155MHz for TD-SCDMA (Time Division-Synchronous Code-Division Multiple Access) 3G technology. This is positive proof from the standpoint of Siemens Information and Communication Mobile (Siemens mobile) that TD-SCDMA will play a major role in China's 3G market. It was delighted to find out that its mobile radio strategy in the Chinese market has been fully confirmed.

Earlier, Lothar Pauly, member of the Group Executive Management of Siemens Information and Communication Mobile said the allocation of frequencies for TD-SCDMA in China marked "a milestone in the standard's development." Siemens mobile has been developing 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.

The recently formed Chinese industry alliance for developing TD-SCDMA products is regarded equally as positively. This alliance was set up last week at the instigation of the MII, the Ministry of Science and Technology (MoST), and the State Development Planning Commission (SDPC).

Convergence Plus caught up with Marco Principato, director for partnering and promoting TD-SCDMA at Siemens Information and Communication Mobile Group, in Munich, Germany, to congratulate him on Siemens' success and know a bit more about their plans. Excerpts from an exclusive interview:

CP: Since this is confirmation of TD-SCDMA being deployed in China, what is Siemens' reaction about this wonderful success?

Marco Principato: This is obviously great news. Allocating 155MHz of spectrum for TD-SCDMA in China means that the operators can deploy it for nationwide networks, and underlines the support for the technology by the regulator. This is indeed a significant milestone in the history of TD-SCDMA.

CP: Siemens will be increasing its investment in TD-SCDMA as well. What will this involve?

Marco Principato: As an end-to-end provider, Siemens is involved in all technologies necessary for the deployment of complete networks. Therefore, the investment is intended for both network and terminal activities.

CP: Will Siemens benefit by way of licensing fees? If yes, by approximately what percent?

Marco Principato: Siemens' IC mobile business is the development and marketing of telecommunication products, services and applications to mobile operators worldwide. Our business is not based on the marketing of IPRs. However, Siemens believes that intellectual property needs to be both encouraged and protected, while at the same time ensuring that the industry at large can benefit. Siemens is ready and willing to license the relevant TD-SCDMA intellectual property at fair and reasonable terms in a non-discriminatory manner.

CP: How will this improve Siemens' position as a leading vendor of network equipment?

Marco Principato: It is hard to say at this point. However, since the spectrum assignment determines the way a given technology may be deployed into the market, the decision by the MII has opened a new set of opportunities in China. Of course, with a long-time involvement in TD-SCDMA, Siemens is well positioned for this development. Nevertheless, one should also not forget Siemens' very strong position in W-CDMA.

CP: Where do the other 3G technologies stand, now that a decision on TD-SCDMA has been reached in China?

Marco Principato: The decision for TD-SCDMA should not be seen as being against the other 3G technologies. However, the spectrum assignment is the prerequisite for the playing field. Which particular operator will deploy which particular technology has not been decided yet. Therefore, the game actually starts now, after the playing field has been set. In any case, since TD-SCDMA, together with W-CDMA, is part of the global UMTS standard, the two technologies fit much better together than with cdma2000.

CP: Finally, what if India, Sri Lanka and other countries decide to trial and opt for TD-SCDMA?

Marco Principato: We see China as the launch pad for TD-SCDMA worldwide. Concrete opportunities already exist in Europe. India could certainly be a further, very interesting opportunity. As far as we know, there are no TD-SCDMA trials in India or Sri Lanka at this point of time. It is more likely that some proprietary TDD technology is being tested, of which TD-SCDMA is one of the most prominent representatives.