China has been working on a 3G wireless network standard called TD-SCDMA for a few years with the hope to reduce dependence on Western technology (and likely their patent fees). Now comes word that trials will begin in the third quarter with full 3G to follow in the fourth quarter. Carriers such as China Mobile, China Telecom and China Network Communications have begun to deploy base stations and a number of TD-SCDMA handsets are on their way from T3G (a joint venture that includes Motorola and Samsung Electronics), Nokia, LG Electronics, Sony Ericsson and others.
The TD-SCDMA Industry Alliance (TIDA) of China predicts that it could gain as much as 14 percent of the marketshare in 2008. The eight cities that will host the 2008 Olympics will all be covered by the new standard, giving it tremendous exposure and growth opportunity among the 60 million new mobile subscribers expected to sign up in 2008.
TD-SCDMA handsets should be price competitive and TD-SCDMA/GSM dual-standard phones are expected to only carry a US$26 premium over GSM-only models.