SK Telecom announced that it had established an MOU for cooperation in the “TD-SCDMA Project”, the first non-Chinese telecom service provider to agree on cooperation with China’s National Development and Reform Commission (NDRC) on development of TD-SCDMA, China’s 3G mobile telecom technology standard.

TD-SCDMA(Time Division-Synchronous CDMA) is a 3G mobile telecom technology standard that has been submitted to the ITU by the Chinese government, and has been acknowledged as a next-generation mobile telecom technology standard by the ITU along with CDMA2000 and WCDMA.

With the establishment of the MOU, SK Telecom and China’s National Development and Reform Commission have agreed on building a cooperative model for joint Korea-China development in the telecommunications industry, for not only TD-SCDMA technology but also beyond 3G technology and 4G, and to make use of the resulting diverse achievements in a direction that adheres to the interests of both parties.

By next year, SK Telecom plans to deploy a TD-SCDMA experimental station in Korea’s Bundang area, make use of the Company’s network deployment and service operation experience to proceed with tests on TD-SCDMA technology and various value added services, enabling the improvement in TD-SCDMA network performance and its commercialization in China.

Also, SK Telecom and China’s National Development and Reform Commission will establish a TD-SCDMA service development center to pursue joint research and development in 3G multimedia services, value added services and platforms.

With the establishment of the MOU for cooperation on TD-SCDMA technology, SK Telecom will make use of its world’s best operation technology and expertise in CDMA, EV-DO, and HSDPA to assist in development of TD-SCDMA related technology, acquire understanding and capability in TD-SCDMA technology, and search for numerous business opportunities in China’s convergence area.

Moreover, through such a working relationship between the two parties, SK Telecom expects its China business, into which SK Telecom has committed a great deal, to gain much momentum with the support of the Chinese government.

Also, SK Telecom and its business partners(handset makers, equipment manufacturers and solutions providers) may develop TD-SCDMA products and services based on the experimental station, resulting in opportunities to enter the China market in IT-related industries as well as diverse economic repercussions.

A personnel from China’s National Development and Reform Commission expressed high expectations about the cooperative relationship, saying, “We will do all we can in providing the necessary support and cooperation so that the project with SK Telecom can be conducted smoothly.”

SK Telecom’s CEO Shin-Bae Kim remarked on the significance of the agreement, saying, “The Ministry of Information and Communication has continuously pursued Korea-China cooperation in the IT industry, and the MOU has been realized with its interest and support. With companies around the world actively seeking entry into China’s telecommunications market, SK Telecom being the first foreign telecom service provider to establish a cooperative relationship with China’s NDRC on TD-SCDMA technology signifies the full recognition of SK Telecom’s technological prowess.”

China’s National Development and Reform Commission is an economic policy department that manages the establishment of China’s macroeconomic policies, management of economic indicators and conduct of large-scale national projects, and is responsible for the approval and licensing of major policy issues.

SK Telecom and China’s National Development and Reform Commission held a ceremony to sign the MOU on TD-SCDMA Project Cooperation on August 29, 3 p.m. at the Lotte Hotel located in Sogong-dong, Seoul, and discussed means of cooperation for development of the telecommunications industry of the two countries. Before signing of the MOU, SK Group Chairman Tae-Won Chey met with China’s National Development and Reform Commission to discuss cooperation for business with China, saying, “We will develop the cooperative relationship between Korea and China in not only mobile telecommunications but other diverse business areas as well.”

Andrew Corporation, a global leader in communications systems and products, has been elected as a new member of the TD-SCDMA Industry Alliance.

The alliance is a voluntary social organization of approximately 25 companies and government institutions devoted to advancing the commercialization of China’s homegrown TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) wireless standard and helping create a multi-supplier environment that uses the technology.

“We are pleased to join this group and contribute toward the future direction of the TD-SCDMA standard,” said Patrick Leung, managing director—China, Andrew Corporation. “Our participation will enhance our ability to support customers with the right products at the right time, and ensure we are continually meeting the evolving standards requirements.”

Andrew has a long-standing and significant presence in China. The company employs more than 3,000 people in China in manufacturing facilities in Suzhou, Shenzhen, and Yantai; a project management office in Hong Kong; research and development centers in Shanghai, Suzhou, and Shenzhen; sales branches in Beijing, Chengdu, and Shanghai; and modern logistics centers in Beijing, Guangzhou, and Hong Kong. It supports all major operators and original equipment manufacturers throughout China with leading wireless infrastructure solutions.

China’s Minister of Science and Technology said that it is necessary for China to launch the third generation mobile communication (3G) service.

The 3G service will play an important role in promoting China’s telecommunications market, said the minister, Xu Guanhua, at the China Development Forum 2006.

Xu said his ministry has kept a close eye on China’s 3G progress and made careful analysis and investigations into the market prospects.

The ministry, along with other government departments, has given strong support to China’s home-grown 3G standard TD-SCDMA .

Much progress has been made, Xu said, adding that he hoped TD-SCDMA will soon take further steps forward.

Xu said his ministry is also pleased to hear the development in the other two 3G international standard CDMA2000 and WCDMA.

As it concerns huge investment in fixed assets, there are different views on whether China should launch 3G service now.

Deng Shoupeng, director with the Development Research Center under the State Council, estimated that in the six years following China’s launch of 3G service total required investment could reach 600 billion yuan (75 billion U.S. dollars).

The Ministry of Information Industry, China’s telecommunnications regulator, has said that it would bring down regulations and policies on 3G technology this year.