Alcatel (Paris: CGEP.PA and NYSE: ALA) and Datang Telecom Technology and Industry Group (Datang Group) today signed a Memorandum of Understanding (MOU) in Beijing that further reinforces Alcatel’s commitment to support China’s home-grown 3G standard, TD-SCDMA. This MOU complements an initial agreement that was concluded between Datang Mobile and Alcatel Shanghai Bell in November 2004.
According to the MOU, Alcatel and Datang Group will work closely together to drive TD-SCDMA development. Specifically, the MOU reinforces the cooperation that currently exists between the two companies in the areas of sales, marketing, industrialization, research and development of TD-SCDMA products and technologies for the domestic China market. Alcatel will assist the Datang Group abroad and support this global effort by taking advantage of its worldwide presence in over 130 countries. Finally, the MOU includes joint development of LTE (Long Term Evolution) products and technologies.
The signature of this MOU is a demonstration of the confidence both companies place in the future of TD-SCDMA and of their intention to become leading providers of TD-SCDMA when 3G arrives in China and well-positioned to capture a number of market opportunities.
In November 2004, Alcatel and Datang Mobile, a subsidiary of Datang Group, signed an agreement to invest in the industrialization of TD-SCDMA in China. In April 2005, Alcatel Shanghai Bell and Datang jointly demonstrated a live end-to-end TD-SCDMA solution during the TD-SCDMA International Summit in Beijing. In August 2005, the two companies finished the TD-SCDMA industrialization and announced readiness for large-scale commercial deployment. In March 2006, Alcatel Shanghai Bell and Datang jointly established a TD-SCDMA lab to provide a real network environment dedicated to interoperability testing between GSM and TD-SCDMA applications.