The European giant will hold a 51 percent stake in the company, which was set up with an initial funding of $100 million. The Chinese partner will hold the rest of the shares. The joint venture will initially be focused on China and will start commercial production in the beginning of 2004.
China is thewith 240 million mobile phone subscribers. The government allowed the use of TD-SCDMA standards and allocated the 155MHz spectrum for it in October of last year. Products that are based on this standard are undergoing field tests in China.
Siemens said this standard is suitable for stand-alone networks with large geographic coverage. It can also complement GSM (Global System for Mobile Communications) or W-CDMA networks to meet specific market demands. The company began development of TD-SCDMA products in 1998.