Telecommunications equipment supplier Alcatel Shanghai Bell Co., Ltd. joins Datang Telecom Technology and Industry Group today to tap the third-generation telecom business, The Beijing News reported.
French-invested Alcatel Shanghai Bell will buy 3 percent of the shares of Datang for 150 million yuan (US$18 million) and it will provide a manufacturing base for Datang for TD-SCDMA-based products, Datang announced yesterday.
TD-SCDMA, or Time Division - Synchronous Code Division Multiple Access, is a China-patent 3G standard developed by Datang.
This investment gives Alcatel Shanghai Bell access to China's huge potential 3G market, industry insiders pointed out.
China's telecom authority has not yet published its long-awaiting 3G industry policies. This delay is believed industry-wide as the authority, apparently preferring a China-patent technology as China's industry 3G standard, is still waiting for the development of TD-SCDMA.
Hence, overseas capital from Alcatel Shanghai Bell is regarded as a further boost for China's 3G development.
Following Germany-based Siemens AG, Alcatel Shanghai Bell is the second overseas firm that has joined Datang for the TD-SCDMA business. It is China's first foreign invested company with Alcatel holding 50 percent plus one share and the Chinese shareholders holding the remainder.