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Nokia to regret ignoring China's 3G Standard
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11:01, May 12, 2008

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Kaiming Communication Co., Ltd, an important TD chip production and research company in the 3G mobile phone industry, filed for bankruptcy recently. Kaiming is the first company to attempt to produce TD chips for 3G mobile phones, to go bankrupt. As a result, Kaiming's bankruptcy of will negatively impact the 3G industry's future development.

The attack on Kaiming results from the reluctance of chief stockholders such as Texas Instruments and Nokia to continue their investment in Kaiming. Professional experts point out that Nokia's behavior reflects the company's indifference toward China's development of the 3G standard.
Employers in Kaiming point out that Nokia should be responsible for Kaiming as Nokia's only TD research company. However, Nokia's attitude not only dissatisfies Kaiming's employers but also bitterly disappoints 3G industry-circles, as well as billions of Chinese consumers who are looking forward to the 3G standard.

Nokia's indifference to China's 3G standard is long standing. Last year, when China's 3G standard was put on the agenda, both Chinese mobile phone companies and some foreign companies, such as Samsung, all expressed supportive attitudes. Nokia looked on as a bystander. At that time, Nokia's indifferent attitude perturbed the Chinese people and aroused criticism. At the beginning of this year, Nokia refused to use chips produced by Kaiming. Currently, as companies are demonstrating their new line of 3G mobile phones, Nokia, as the leading mobile phone company, surprisingly has not made a similar move.

Although 3G mobile phones have yet to be perfected, they have become an irresistible trend among mobile phone companies. Chinese mobile phones companies have jumped on this opportunity to promote 3G mobile phone research based on the TD standard and have pushed forward the 3G industry.

An anonymous expert in this area points out that Nokia's apathy toward China's 3G standard is truly perplexing. As the largest mobile phone market in the world, China is undoubtedly Nokia's largest global market. It goes without saying that the Chinese mobile phone market has prevented Nokia's mobile phone department from being bought out. Consequently, Nokia should be responsible for the development of the 3G mobile phone industry based on the TD standard. The support for the 3G mobile phone industry in China should also be regarded as a future strategy for Nokia. As a leading mobile phone company in terms of research and development, Nokia should be more daring and resolute than Chinese mobile phone companies.

In an interview with one senior manager in a transnational communication company, Nokia was criticized for its attitude: once a transnational company settles in China, it should integrate the development of the company with that of the country it settles in.
As an international standard dominated by Chinese technology, TD-SCDMA is closely related to the strategy of developing a capacity for independent innovation. Therefore, TD-SCDMA should be supported and respected by both domestic and foreign companies in China, as it is beneficial for the long-term development of foreign companies in China. Some people question if it is because Nokia has made a great profit in China that it may withdraw from Chinese market in the future.
In one interview, the CEO of a Chinese mobile phone company asserted that the 3G industry in China will continue to develop regardless of Nokia's participation. He also stated that Nokia will pay the price for its "pride and prejudice."

By People's Daily Online

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