Ericsson gets into bed with Datang

Nicole McCormick
21 Apr 2010
00:00

Ericsson is aiming to boost its China 3G offerings by hooking up with state-backed vendor Datang Telecom.

Ericssion announced Tuesday it will integrate Datang's TD-SCDMA radio access network equipment into its 3G portfolio.

Under an MoU, it will also jointly develop TDD-LTE network solutions with Datang, which holds virtually all of the Chinese government’s TD-SCDMA patents.

The cooperation aims to promote a “common platform for FDD and TDD” in order to “increase the industrialization capabilities of TDD solutions by achieving economies of scale,” Ericsson said.

The Swedish vendor set up a TDD joint research center with Datang in Beijing in January 2008, but the latest strategic cooperation takes the relationship between the pair “to a substantially new level.”

The announcement follows analysts’ warnings that earnings at Ericsson – the world’s biggest wireless vendor – will be under pressure as Chinese operators trim their 3G rollouts.

Ericsson has won only a small fraction of China Mobile’s TD-SCDMA rollout, which peaked last year. The bulk of the contracts have been won by ZTE, Huawei and Datang Mobile, Datang Telecom’s infrastructure subsidiary.

Ericsson signed a TD-SCDMA product alliance with ZTE five years ago, but the two companies have been marketing their solutions separately.

Datang, a small loss-making vendor spun off out of a government research institute, is at the center of China’s decade-long effort to commercialize TD-SCDMA.

Chen Shanzhi, Datang Telecom vice president and CTO, said the pact with Ericsson will help “drive the globalization of TD-SCDMA and play an important role in the industrialization of TD-LTE in the long run."

Related content

Comments
No Comments Yet! Be the first to share what you think!

This website uses cookies

This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.