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Datang to Attempt CDMA with Compaq
Chinese mainland's largest telecommunications equipment maker Xi'an Datang Telephone Corp Wednesday entered a partnership with Compaq Computer to seize CDMA opportunities in China, with planned investments up to US$30 million in 2001.
Compaq will provide mobile roaming and other technologies to be integrated into Datang networking products, the companies said during a telecoms conference in Hong Kong.
Plans by Beijing-backed carrier China Unicom Group to build a current-generation network using the CDMA standard developed by US-based Qualcomm Inc gained momentum this week after a delay-filled year, and CDMA equipment suppliers said they expect China Unicom Group to begin awarding contracts for buildout of the network early in 2001.
Philip Yu, president of Compaq Greater China, said his company stood to see a "very substantial revenue upside" -- in the range of tens of millions of dollars -- if, as expected, the first phase of China Unicom Group's planned CDMA network is built to serve 10 million customers.
Other CDMA networking equipment makers hoping to sell gear to the planned China Unicom network include Nortel Networks, Motorola Inc, Ericsson, and Lucent Technologies.
CDMA stands for code division multiple access, and in its current-generation competes with the European GSM mobile standard, which is the dominant standard in China.
Datang already supplies CDMA equipment in China to the military controlled Great Wall Telecom mobile network, which will soon be merged into China Unicom Group.
Source: chinadaily.com.cn
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