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Shrinking capital investment in the worldwide LCD industry

Updates: Samsung board approves LCD business spin-off [Feb 21, 2012]

Samsung Electronics has announced that plans to spin off the company’s LCD display business have been approved by its board of directors. The new body will be 100%-held by Samsung, concentrating on developing future display technologies such as OLEDs.

The display market is undergoing rapid chances with OLED panels expected to fast replace LCD panels to become the mainstream. Amid this structural change of the display industry, adopting measures for change and innovation, including business restructuring, are essential to improve our competitiveness for our display business,” Samsung said in a statement.

The spin-off is scheduled to take effect on April 1, 2012, subject to approval by company shareholders, according to Samsung.

Samsung indicated that running its LCD unit separately will also allow it to make investment and other business decisions efficiently, while strengthening its technological capability and competitiveness.

Tentatively named Samsung Display Company, the new company will be built with paid-in capital of KRW750 billion (US$667.8 million), Samsung disclosed. Going forward, the entity will consider adopting various restructuring measures including a merger with Samsung Mobile Display (SMD) and S-LCD, Samsung indicated.

Samsung’s display panel unit – including its LCD business and subsidiary SMD – reported KRW750 billion [US$667.8 million] in operating losses for 2011, while its other businesses stayed profitable. The firm saw its overall operating profits slip 6% to KRW16.25 trillion [US$14.5 billion] in 2011.

Samsung also makes memory chips and mobile phones.

Samsung to invest more into display technologies [Feb 15, 2012]

Industry sources indicated that Samsung Electronics continues to expand its TV product lines and is aiming for smart TV shipments to reach 50 million units in 2012. In particular, Samsung may invest up to KRW6.6 trillion (US$5.9 billion) into LCD display products.

LG also plans to introduce OLED TV products at the end of 2012. The market believes LG will adopt white OLED display technology.

Industry sources noted that Samsung will likely focus on producing OLED TVs after merging Samsung Mobile Display into the group.

Taiwan-based panel maker AU Optronics (AUO) also has OLED technology. However, the firm indicated that large-size OLED panels will only be produced in small amounts. The firm will focus its OLED technology towards small- and medium-size products such as smartphones and tablet PCs. AUO showcased a 32-inch OLED TV at the end of 2011.

AUO added that yields from producing large-size OLED panels continues to be a problem. Currently, the price of OLED TVs is still quite high. Taiwan-based TV brands believe that low-priced models will continue to take over the TV market in 2012, hence it is unlikely for consumers to try out OLED TVs while the price is still high.

China government reportedly plans to raise import tariffs for LCD panels [Feb 6, 2012]

The China government plans to raise import tariffs for LCD panels by 3-5% in the second quarter of 2012 in order to safeguard the development of the domestic flat panel industry, according to industry sources.

While acknowledging the speculation, most Taiwan-based panel makers stated that they have not heard any official announcement from the China government and expect the new tariff policy to become more clear in May.

If the new tariffs are realized, China-based flat panel makers BOE Technology and China Star Optoelectronics Technology (CSOT) will benefit from the adjustment as the two companies are ready to ramp up their output this year, the sources commented.

The possibility is high for the China government to raise tariffs for LCD panels at a time when its 8.5G lines begin volume production and domestic 10G lines have gradually been established, Jason Hsuan, chairman of TPV Technology, said earlier.

See also the updates as of January 4, 2012 in the ending part of this post.
End of updates

Digitimes Research: Samsung may cut LCD panel orders for Taiwan after Sony exit from S-LCD [Jan 2, 2012]

Sony has been cooperating with Samsung Electronics on the TFT LCD business since 2004 when the Japan vendor was optimistic about the growth of the LCD TV market. Large-size panel makers in general were able to achieve gross margin of 20% and some even had 35% in the period between second-half 2003 and first-half 2004. This further hardened Sony’s determination to invest in large-size LCD TV panel production, forming a joint venture, S-LCD, with Samsung in April 2004.

But the price of LCD TVs and related panels have been dropping rapidly and growth of the market is also slowing down. Accumulated loss for Sony’s TV business unit has reached JPY650 billion (US$8.4 billion) since 2003. Hence, lowering the cost of procuring panels and the cost of running S-LCD has become a priority.

Due to the loss incurred by the TV business unit and the rising popularity of smartphones, Sony decided to buy back all shares of Sony Ericsson to expand its own smartphone department, but at the same time exit the cooperation in S-LCD. The departure from S-LCD can help Sony decrease losses and obtain a certain amount of cash.

Taiwan firms have seen Japan vendors such as Sharp, Panasonic, Toshiba and Sony increase panel procurement and TV orders. Sony may now decrease the amount of panel procurement from Samsung, and rely even more on Taiwan suppliers. As for Samsung, it is possible that it may move one of S-LCD’s 8.5G production lines to Suzhou, China to avoid tariffs.

Samsung is the world’s largest LCD TV vendor. In 2011, about 40% of its TVs used LCD panels from AU Optronics (AUO) or Chimei Innolux (CMI). So once Sony decreases the amount of panel procurement from Samsung, it is predictable that Samsung will decrease the number of panels procured from Taiwan-based panel makers. Therefore, Sony’s exit of S-LCD cooperation is not completely beneficial to Taiwan-based firms.

Reinvent the display–again [Dec 27, 2011]

By Mary Lou Jepsen, Founder and CEO, Pixel Qi (as told to Barb Darrow)

Mary Lou Jepsen could be called the queen of screens. Her pioneering work on computer displays took her from graduate studies in holography at MIT and optical science at Brown to MicroDisplay to Intel to One Laptop Per Child. Today, she is the founder and CEO of PixelQI, where she works on creating energy-stingy, bright, and lightweight screens for laptops and smaller devices, including phones. In her view, the screens are not an after thought, they are key to the user experience.

The LCD industry is in meltdown. The losses are huge and have been for the last five years or so. It’s unclear how some of the large companies are going to make it through.

The recession’s different in the hardware industry. I think it’s much worse today than in 2008 and early 2009. For the tier one companies, it’s not about the hardware anymore. It’s abouthardware, software, content. And content suppliers are king right now. A lot of the hardware suppliers won’t survive unless they restructure. It’s a bit like the airline industry. Many of the airlines we fly are bankrupt. We’re dealing with that kind of scenario. They all make the same products and compete on price. You can only do that for a number of years before the consequences get worse and worse. E-ink stands alone, as a category that is doing relatively well.

In 2011, it became apparent to the executives that they need to do something different. That made our life easier at PixelQI. Now we can get into the factories. Before it was a struggle, with us trying to say, “We know more about designing an LCD than you do.” They’d look at us and say, “How many people are you? We’ve got 50,000 people. Where’s your fab? How many engineers do you have?” For me to say, “Well, my engineers have Ph.D.s from MIT and Stanford” — they don’t care about that.

Over the course of our company’s life, we’ve shipped three million units, including the One Laptop Per Child units. No one’s ever done that before for a novel display company. It usually takes decades. We’ve shown our stuff can be mass-produced in volume and deal with the price structure inside existing factories.

We may move into the cell phone space next year, but for that we need to demonstrate volume in multiple fabs, because the volume in cell phones is so large.

One challenge for next year is whether the industry, our customers, find an interesting tablet that isn’t just like the iPad but cheaper. Certainly Amazon is making a go of it. The competitive landscape has been tough on our big customers, the ones in Best Buy who compete with Apple. There are a lot of products that haven’t made it.

We’re also working on some displays that will be rollable, flexible, put anywhere displays, and look better than OLED and don’t need power cables or data cables. That’s pretty cool, because then you can solve some problems in portable computing. With rollable displays you can look at more data. You can write notes in one area and view things in other areas. Digital signage needs it. TV needs it.

LCD is a bit like low-end DRAM these days and it doesn’t have to be. There’s so much more we can do to use it like we use DCMOS. With what we’re doing, we’ll show you that you don’t need batteries. Or it might be more like a watch where you might change a small battery.

I’ve also been thinking about the way we perceive images. When you see something really striking, it feels like it’s burnt on your retina. There’s some data that suggests that it kind of is. Not the retina exactly, but right behind it, on the LGN [lateral geniculate nucleus]. There’s research that shows that it’s possible to extract that information, suck it out. Two thirds of our brainpower is allocated to processing visual images. What are they? Do they look like what we think they are? Can we get those out to people? How will communication change? Will it be better, worse? Will it shock people? In the ultimate future of display technology, there is no display. We will communicate with images that are in our minds already.

Mary Lou Jepsen of Pixel Qi at TEDxTaipei [May 9, 2011]

You have to consider, while it has been 23 months ago that I [i.e. Charbax] published my first Pixel Qi interviews from Taiwan (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) while that might sound like a long time, in the display industry, 2 years is peanuts. Things move rather slowly there. Since then, there has been an economic crisis and a sort of re-focus from netbooks to tablets, although netbooks have sold more than 100 million units in 3 years, the display investments are focused on tablets. The display business can be considered to be the worlds biggest non-profit industry, the 5 biggest LCD makers who produce 90% of the worlds LCDs, produce for $120 Billion in screens every year but can only make small profit margins out of that because of the strong competition and the large volumes shipped. Those companies that produce the worlds LCD screens have very high costs, very high risks, little flexibility. Let’s hope Pixel Qi has amply well convinced the big LCD makers like Quanta, CPT, Chi Mei, Samsung, LG, Sharp, Sony, Foxconn, let’s hope that they have all signed with Pixel Qi and that they are all right now in the process of tuning the mass manufacture of millions of these screens for all the worlds upcoming Chrome OS notebooks, ARM Powered Macbooks, Kindle4s, iPad3s, a solution for using the interactive UIs of Android on all the worlds e-readers. It would also be nice to double the battery runtime and improve outdoor readability on all the worlds Smartphones using Pixel Qi.

More information:
Pixel Qi’s first big name device manufacturing partner is the extremely ambitious ZTE [Feb 15, 2011]
Pixel Qi’s second investment round concluded by the 3M investment [Sept 19, 2011]
Reflectivity/Sunlight readability category of posts on this blog (14)

Anticipated Tablet Growth Alters TFT LCD Manufacturing Strategies, NPD DisplaySearch Reports [Dec 13, 2011]

In response to falling large-area TFT LCD panel prices in 2011, panel makers have minimized their 2H’11 production, but preparation for 2012 models and gradual clearing of supply chain inventories are encouraging panel makers to take a more positive stance in their production strategies. According to the NPD DisplaySearch Quarterly Large-Area Production Strategy Report, global TFT LCD glass input peaked in Q2’11, achieving a record 42.1 million square meters, but then fell to 36.5 million square meters in Q3’11, and is expected to reach 37.8 million square meters in Q4’11.  

In Q1’12, panel makers are expecting to increase glass input by 5%, to 39.8 million square meters. The forecast capacity utilization is 77% in Q1’12, which is 7% higher than previously expected. This is partly based on expectations that prices have bottomed out in this cycle. Also, panel makers are planning for new models, such as larger size multi-function monitor panels, ultra-slim notebook PC panels, new TV panel sizes including 39”W, 43”W, 48”W and 50”W with cost effective CCFL and LED backlights, and slim bezels. However, with 2012 market demand still unclear, panel makers foresee the possibility of adjusting capacity utilization again in Q1’12.

Table 1: Global TFT LCD Glass Input by Application (Million m²/Quarter)

Application
Q1’11
Q2’11
Q3’11
Q4’11
Q1’12
LCD Monitor
7.9
9.2
7.8
7.5
8.1
LCD TV
22.8
25.4
21.6
23.3
24.4
Notebook PC
3.7
4.3
4.0
3.9
4.0
Tablet/Mini-Note PC
0.7
1.0
1.1
1.2
1.4
Small/Medium
2.0
2.0
1.9
1.8
1.9
Others
0.1
0.2
0.1
0.1
0.1
Total
37.2
42.1
36.5
37.8
39.8

Source: NPD DisplaySearch Quarterly Large-Area Production Strategy Report

According to Shawn Lee, Senior Analyst for NPD DisplaySearch, “Increasing production does not necessarily increase shipments, as panel prices are close to cash costs in many cases. However, improved inventory and price outlooks, as well as the launch of new panel models, are leading panel makers to be more optimistic.” Lee added, “Other factors leading to the increased production forecast include the need to increase utilization rates in order to cover depreciation costs, and the fact that new panel producers in China are starting to ramp up their fabs, contributing to the increased input. Lee concluded, “After a long oversupply period, panel makers are still cautious about glass input and utilization rates, and they do not plan to increase utilization to more than 80% in Q1’12.”

Tablet Panel Production on the Rise, While Mini-Notes Slide

In mobile PC applications, panel makers plan to decrease production of mini-note PC panels while increasing production of tablet PC panels, with area production of tablet PC panels expected to double from Q1’11 to Q2’11. Panel makers are also reshaping their tablet PC panel production strategies, with Sharp using its Gen 8 fab to produce tablet PC panels with oxide TFT backplanes, and Samsung, LG Display, and Sharp producing tablet PC panels with more than 200 pixels per inch.

Other panel makers, including AUO, Chimei Innolux, BOE, CPT and HannStar, are planning to apply more production resources to tablet PC panels in 2012. Although Gen 5 and smaller fabs will mainly produce mini-note and tablet PC panels, more than half of these will be produced in Gen 6 and Gen 8 starting in Q1’12.

Table 2: TFT LCD Glass Input for Mini-Note and Tablet PC by Generation (Million m²/Month) [emphasis in red is mine]

Generation Fab
Q1’11
Q2’11
Q3’11
Q4’11
Q1’12
Gen3.5
10.8%
13.0%
8.1%
5.9%
0.1%
Gen4
1.4%
0.4%
0.1%
0%
0%
Gen5
83.9%
83.9%
74.1%
57.1%
49.4%
Gen6
3.2%
3.2%
17.7%
16.8%
10.1%
Gen8
0.7%
0.7%
0%
20.3%
40.5%

Source: NPD DisplaySearch Quarterly Large-Area Production Strategy Report

The NPD DisplaySearch Quarterly Large-Area Production Strategy Report offers the industry’s most complete view of large-area panel production by analyzing panel makers’ quarterly production plans. Subscribers receive production plans by application in different generation fabs, with granular detail down to the size by aspect ratio and by country. With 100% coverage of panel makers, the Quarterly Large-Area Production Strategy Report provides reliable information and insight needed to evaluate production strategies, understand current capacity, spot key supply trends before it is too late and manage inventory. Please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact@displaysearch.com or contact your regional NPD DisplaySearch office in China, Japan, Korea or Taiwan for more information.

About NPD DisplaySearch
Since 1996, NPD DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. NPD DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge and resources. In collaboration with The NPD Group, its parent company, NPD DisplaySearch uniquely offers a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on NPD DisplaySearch analysts, reports and industry events, visit us at www.displaysearch.com. Read our blog at www.displaysearchblog.com and follow us on Twitter at @DisplaySearch.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit www.npd.com and www.npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.

Low Temperature Polysilicon and IGZO Production Forecast to Skyrocket 150% in 2012 [Dec 19, 2011]

Adoption of High Mobility TFT LCD Backplanes in the iPhone and iPad Create a New Paradigm in FPD Manufacturing

Santa Clara, California, December 19, 2011—The explosive growth of smart phones and tablets has made high performance TFT technologies, particularly LTPS (low temperature polysilicon) and IGZO (indium gallium zinc oxide), critical to production of the high resolution displays used by these devices. These TFT technologies employ high mobility semiconductor materials, which allow panel manufacturers to shrink TFT dimensions and increase light transmission. LCDs with greater than 230 ppi (pixels per inch) resolution, such as Apple’s Retina Display, are enabled by high transmission because it minimizes power consumption, allowing mobile devices to run longer without recharging.

According to the NPD DisplaySearch TFT LCD Process Roadmap Report, high mobility backplane production is forecast to grow 150% from 5.6 million square meters in 2011 to 14.1 million square meters in 2012. Drivers for this tremendous growth include multiple Gen 5 and larger LTPS fabs starting production in 2012, as well as expected IGZO production on existing lines by Sharp, LG Display and Samsung.

Figure 1: Manufacturing Capacity Devoted to High Resolution Backplane Production

Source: NPD DisplaySearch TFT LCD Process Roadmap Report

Smart phones, tablets and cost reduction are expected to be the key drivers pushing the FPD industry in 2012,” stated Charles Annis, NPD DisplaySearch Vice President of Manufacturing Research. “With FPD profitability under extreme pressure, LCD makers are focusing development efforts on rapidly-growing mobile segments and a wide array of cost reduction strategies. Because of this, high mobility backplanes, optical alignment, high resolution lithography and advanced LC modes are expected to be some of the most important manufacturing technology trends over the next year.”

All of these technologies target increasing panel transmission. With only about 4-9% of illumination generated by LCD backlights making it to the front of screen, very powerful light sources are required to meet LCD brightness specifications. In addition, backlight units are the single most expensive components in large-area LCD modules. Thus, by increasing transmission, panel makers can trade off power consumption and costs.

“However, a lot of know-how and proprietary technology are required to successfully increase transmission without sacrificing yield. Panel makers and their suppliers are racing to create competitive advantages through manufacturing technologies to increase profitability in 2012,” Annis added. “Any technology, such as IGZO, that may simultaneously lower costs while improving performance offers a double competitive advantage to panel makers, and potentially can create a new standard in FPD manufacturing.”

The new NPD DisplaySearch TFT LCD Process Roadmap Report offers a unique and unprecedented guide to these rapidly evolving FPD manufacturing technologies. The report provides technical discussions, process flows, production status by maker, adoption forecasts for 57 technologies and analysis of benefits, opportunities, negatives and challenges. Additionally, LCD cost and performance specifications for manufacturing technologies are projected through 2016.

For more information about the new NPD DisplaySearch TFT LCD Process Roadmap Report please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact@displaysearch.com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan for more information.

Apple to utilize IGZO panels for its new products [Dec 30, 2011]

Apple is expected to push forward the adoption of IGZO (indium gallium zinc oxide) flat panels, instead of IPS (in-plane switching) panels used currently, for its next-generation mobile display products, according to sources in Apple’s supply chain.

Starting with the new iPads, Apple will utilize IGZO panels from Sharp in order to upgrade the display resolution of the new tablets to full HD level, the sources indicated.

To enter the supply chain of iPads, Sharp has switched some of its capacity for large-size panels to the production of small-size panels for smartphones and tablet PCs, said the sources, adding that Sharp will also continue to roll out its Galapagos tablet lineup in 2012 using IGZO panels.

Most Taiwan-based flat panel makers are capable to produce IGZO panels, but the yield rates of such panels still remain a major concern for the makers, said the sources.

Digitimes Research: iPad pricing to change tablet game [Jan 3, 2011]

Market watchers have mostly expected Apple to follow its traditional pricing strategy for its next-generation tablet device, which is likely to start from US$499 with the present iPad 2 to drop to US$399. But if Apple releases two versions of the new iPad, as reported by Digitimes, the vendor’s pricing strategy may change.

Sources from Apple’s supply chain have claimed that there will be two versions of the new iPad, one targeting the high-end segment and the other the mid-range. Digitimes Research believe the two new iPad models will both be equipped the A6 processor with high-end model coming with a high resolution panel (2048×1536) and the mid-tier model featuring the same grade of panel as iPad 2 (1024×768).

With the existing iPad 2, the Apple tablet series may cover all price segments – from entry-level to high-end. Apple’s pricing strategy for its iPad series is crucial to the tablet market. It remains to be seen at what price level Apple will set its entry-level iPad. For Wi-Fi only models, US$299, US$349 or US$399 may all be possible.

Currently, the non-Apple camp is maneuvering in the US$199-399 range. If Apple drops its iPad price to US$299, it could seriously affect the non-Apple camp’s pricing strategy and even Amazon’s Kindle could also be affected.

Apple to unveil two versions of next-generation iPad in January, sources claim [Dec 29, 2011]

Apple is set to unveil its next-generation iPad – which will come in two versions – at the iWorld scheduled for January 26, 2012, according to sources at its supply chain partners. The new models will join the existing iPad 2 to demonstrate Apple’s complete iPad series targeting the entry-level, mid-range and high-end market segments, the sources claimed.

The iPad 2 will be competing directly with Amazon’s kindle Fire in the price-sensitive market segment, while the new models will focus on the mid-range and high-end segments respectively, the sources said.

Apple officials declined to comment.

Instead of the previously-rumored 7.85-inch, the upcoming iPad models will still feature 9.7-inch screens but come with QXGA resolution (1,536×2,048 pixels), the sources indicated. Dual-LED light bars are designed for the new iPads to strengthen the brightness of the panels, the sources added.

Sharp will be the major panel supplier for Apple’s next-generation iPad series, while Samsung Electronics and LG Display are also responsible for a part of the orders, the sources said. Minebea, from which Sharp sources backlight units (BLUs), has accordingly entered the supply chain for the new iPads, the sources pointed out.

Apple continues to contract Samsung to manufacture its quad-core A6 processors, which will be used in the next-generation iPads, the sources revealed. The existing iPad 2 is based on the dual-core A5.

Samsung is also among the CMOS image sensor (CIS) suppliers for one of the versions of the new iPad that comes with a 5-megapixel lens, marking the Korea-based vendor’s first time to grab CIS orders from Apple, the sources noted. Sony is the other CIS supplier for the other model with a higher 8-megapixel lens, the sources added.

In addition, Simplo Technology and Dynapack International Technology have both secured orders for batteries with a capacity of as high as 14,000 milliampere-hour (mAh) used in the new iPads, according to the sources.

Updates:

Chimei Innolux to Cut Capital Spending to NT$30B. in 2012 [Jan 4, 2011]

Chimei Innolux Corp., the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, plans to keep 2012 capital spending to under NT$30 billion (US$1 billion) compared to about NT$50 billion (US$1.67 billion) in 2011, according to CEO Tuan Hsing-chien.

The panel maker aims to utilize its capital spending to develop new technologies, including IPS (In-Plane Switching).

Chimei Innolux claims that all its businesses, including large-sized, small- and medium-sized and touch panels, will grow clearly in 2012, especially when the touch-panel shipments are forecast to increase 40%.

Tuan stressed that Chimei Innolux`s system-integration (assembly) business unit will totally spin off in 2012. The company`s system assembly business once generated revenues of about NT$10 billion (US$333.3 million) per year, and now about NT$5 billion to NT$6 billion (US$166.7 million to US$200 million), with revenue expected to rise regardless in 2012.

The CEO pointed out that the maker engaged in many basic works in 2011, including development of LED-backlighting and three-dimension (3D) panel products, as well as new TV-panel sizes as 39- and 50-inch. He added that Chimei Innolux`s shipments of small- and medium-sized panels will grow 20% to 30% in 2012, backed by added capacities of two of the company`s 4.5th-generation (4.5G) factories.

Tuan said that the company will continue to accelerate the development of active matrix organic light-emit diode (AMOLED) panels, which are to be small-volume produced in the third quarter.

Chimei Innolux to Supply Panels to 2nd-Gen. Kindle Fire [Dec 21, 2011]

Chimei Innolux Corp., the largest maker of thin film transistor-liquid crystal display (TFT-LCD) panels in Taiwan, recently won Amazon`s order for panels used in its Kindle Fire second-generation tablet PCs.

The company is already a panel supplier to Apple`s iPad 2, and the new order from Kindle Fire would further consolidate Chimei Innolux`s leading position in Taiwan in supplying tablet-use panels.

Industry sources said that tablet-PC panel is one of a few panel models still generating profits now for panel suppliers, so the new order is expected to have positive effects on Chimei Innolux`s operation.

The first-generation Kindle Fire was contract assembled by local Quanta Computer Inc. using panels supplied by Korean company LG Display and Taiwanese maker E Ink Holdings Inc. (formerly known as Prime View International Co., Ltd., who contracted local Chunghwa Picture Tubes, Ltd., or CPT to produce the panels).

Hon Hai Group [i.e. Foxconn] of Taiwan reportedly won the contract-assembly order for the second-generation Kindle Fire, allowing its affiliate Chimei Innolux to supply the panels.

Data compiled by market research firm iSuppli showed that Chimei Innolux ranked as the world`s No. 3 supplier of tablet-PC panels, trailing only LG Display and Samsung. With the new order from Amazon, Chimei Innolux`s market share is expected to rise further, industry sources said.

Chimei-Innolux Plans to Sell Production Equipment to Brazil [Dec 19, 2011]

Eike Batista, the richest person in Brazil, has reportedly planned to join hands with a Brazilian bank and Hon Hai Group in establishing an FPD (flat panel display) plant in Brazil by procuring existing 6th or 7.5G equipment from Chimei-Innolux at several tens of billions of NT dollar.

The project, if materialized, will enable Hon Hai to expand its deployment, while helping Chimei-Innolux weather its financial plight.

In response to the news, Chimei-Innolux reported yesterday (Dec. 18) that the company is evaluating related projects. Hon Hai failed to respond to the report. The Brazil side reportedly dispatched a delegation to Taiwan to study the feasibility of the project recently.

Brazilian media revealed that Batista already signed an agreement with Brazilian bank BNDES and Hon Hai [i.e. Foxconn] for the project recently. Initial investment will top US$4 billion, including US$500 million from Batista and US$1.2 billion from BNDES. Hon Hai intends to provide technology, without contributing fund. The investors intend to purchase the existing production equipment of Chimei-Innolux.

Chimei is considering selling its sixth- or 7.5th- generation plant to the project, with the former capable of turning out panels for use in tablet PC and TV and the latter mainly for the production of TV panels.

Sixth-generation plant is not the mainstream equipment on the market but still worth several tens of billions of NT dollar. The sales will greatly alleviate the financial pressure for Chimei-Innox, which has suffered red inks for six quarters in a row and is having difficulty in obtaining syndicated banking loans.

Brazil has a huge consumption market, with local sales of LCD TV topping 8 million units this year, for 40% growth. The country, however, doesn’t have FPD plants. Hon Hai, therefore, has planned to set up LCD TV production base in the country.

Foxconn denies rumors of Chimei takeover [Dec 9, 2011]

Foxconn, the world’s largest contract manufacturer of electronic products, has denied rumors that the companu is to play a larger role in Chimei Innolux’s operations after the Taiwanese flat panel maker’s chairman Frank Liao resigned Thursday.

Chimei’s stocks were boosted this week on the rumor that Liao’s resignation signifies a personnel shakeup that could include more influence from stakeholder Foxconn. If Foxconn were to play a larger role in the company, their success in the technology manufacturing industry could help give Chimei Innolux an edge.

Foxconn said the speculation about its future role at Chimei is just rumors and that Chimei Innolux will still be run by its own board.

Foxconn also stressed that it is only a shareholder of the company, holding 11% of Chimei shares, fewer than Chimei Corporation‘s 13.57%. Of the 11% holdings, 2.9% are personal investments by Foxconn founder Terry Gou. Foxconn says Gou’s holding are separate from the company’s investments. Foxconn remains the second largest shareholder of Chimei Innolux after Chimei.

Chimei Innolux to come under management of Foxconn [Dec 4, 2011]

Chimei Innolux chairman Frank Liao, right, has resigned and may be succeeded by CEO Tuan Hsing-chien, left, or Foxconn founder Terry Gou.
Chimei Innolux chairman Frank Liao, right, has resigned and may be succeeded by CEO Tuan Hsing-chien, left, or Foxconn founder Terry Gou.

Electronics contract manufacturer Foxconn may gain full management rights over flat panel maker Chimei Innolux as chairman Frank Liao resigned for health reasons and vice chairman and CEO Tuan Hsing-chien stepped down from the board but remained as CEO on Saturday. Foxconn founder Terry Gou and Tuan are the most popular candidates to succeed Liao at the Taiwan-based company.

There has been sepculation regarding the timing of Liao’s resignation. The flat panel maker has been struggling to secure a NT$40-$60 billion (US$1.3-$2 billion) consortium loan to save its faltering business, which has been blamed as the main cause of 74-year-old Liao’s deteriorating health.

Chimei has also struggled to cope with corporate infighting since it merged with Innolux Display in 2010. The two companies have a very different corporate culture and their similar organizations have seen an overlap in each other’s authority, creating constant leadership fights. They have therefore not seen much benefit from the consolidation of the flat panel sector that Taiwan’s government has called for since 2008. The tensions between them were raised even higher recently as Chimei Innolux attempted to split up its touch screens and medium and small display departments.

Liao’s resignation is widely viewed as signifying an end to Chimei’s influence over the company and the rise of a new leadership headed by Foxconn, where it is believed Terry Gou may take the helm himself.

The Taiwan-based Foxconn is the world’s largest contract manufacturer of electronic products, which counts Apple among one of its biggest clients.

LCD makers look to gain from growth in Chinese market [Dec 30, 2011]

Taiwanese display panel manufacturers AU Optronics and Chimei Innolux have benefited from the growing sales of LCD TVs in the Chinese market, which looks set to continue expanding in the near future.

Chimei has held the top spot in terms of market share in China for eight months straight, closely followed by AU. As of November, Chimei accounted for 30% of the Chinese market, while AU followed with 21.9%. South Korea-based LG and Samsung rounded out the top four, accounting for 21.7% and 20%, respectively. BOE, a Chinese brand, has also seen good performance in recent months, with a growth rate of 53% in November and market share of nearly 6%.

According to a report by LCD market research firms WitsView and Eintell, total shipments for the six largest TV brands came to 4.2 million in November, a figure that was higher than previously expected and is estimated to rise in December. Display panels sales also saw a higher-than-expected growth rate — 32.9% — in November.

WitsView also indicates that one of the important focuses for LCD makers next year will be TV size. Chimei will continue to develop and manufacture TVs of different sizes for the Chinese market, following its new 39-inch and 50-inch models. Samsung plans to produce 39-inch and 52-inch TVs.

An official at WitsView said that although LCD sales had increased thanks to Black Friday in the United States, it is still not clear whether demand for TVs will match supply after Chinese New Year.

Taiwan flat panel production value tops NT$1.39 trillion in 2011, says PIDA [Jan 2, 2012]

The production value of TFT LCD panels produced by Taiwan flat panel makers totaled NT$1.39 trillion (US$45.89 billion) in 2011, including NT$797 billion for large-size panels and NT$241.8 billion for small- to medium-size panels, according to an estimate of the Taiwan Photonics Industry and Technology Development Association (PIDA).

In terms of production volume, shipments of small- to medium-size panels reached 1.694 billion units for 2011, an increase of 21% from a year earlier, PIDA said.

Chunghwa Picture Tubes (CPT) was the top vendor in the small- to medium-size panel segment with shipments totaling about 500 million units, accounting for a 30% share, PIDA added.

Chimei Innolux (CMI) came in second in the same segment with shipments totaling 425 million units in 2011, accounting for a 26% share, down from 31% of a year earlier.

HannStar Display‘s shipments of small- to medium-size panels soared 67% to 414 million units during the year, but shipments of small- and medium-size panels from AU Optronics (AUO) slid 14% to 190 million units in 2011.

Shipments of small- to medium-size panels will continue to grow in 2012, since smart mobile devices will remain the mainstream products in the year and more low-priced smartphone will be rolled out, PIDA concluded.

Chunghwa Picture to be Taiwan’s top maker of small and medium panels [Dec 29, 2011]

Chunghwa Picture Tubes, Ltd. (CPT) will replace Chimei Innolux Corp. as Taiwan’s biggest maker of small and medium panels by the end of this year thanks to a shift in product mix, a Taipei-based industry association predicted Thursday.

The Photonics Industry and Technology Development Association (PIDA) said that shipments of small and medium panels in Taiwan will amount to around 1.69 billion units in 2011, up 21 percent year-on-year from the 1.4 billion units recorded in 2010 in light of strong demand from the smartphone and tablet PC markets.

Shipments of CPT’s small and medium panels in 2011 will increase by 42 percent from 352 million units last year to reach 500 million units, moving the Taoyuan-based company into the top spot in the market with a 30 percent share, the PIDA said.

Last year, CPT took 25 percent share of the market and ranked the second-largest vendor behind Chimei Innolux, according to the association.

CPT’s huge growth can be attributed to a transformation of its Generation 6 plant to produce high-end small and medium panels for smartphones, the PIDA said.

CPT Steps into Smartphone Panel Biz [Nov 2, 2011]

Chunghwa Picture Tubes, Ltd. (CPT), a major thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, recently announced to venture into the cellphone-display panel field, claiming also to utilize a sixth-generation (6G) production line to produce projected capacitive touch panels.

CPT said that it had modified a 4.5G production line specially for production of capacitor touch panels and 0.3T glass. To meet strong demand, the company has been aggressively adjusting product mix and upgrading technological capability, having successfully developed 3.5-inch panels for smartphone application and will begin mass production of such product at its 6G line in November.

CPT also aims to produce over-4-inch WVGA (400×800 and 400×864) smartphone panels, expecting to complete the project by year-end.

According to the panel manufacturer, it has been raising shipment of small- and medium-sized panels, hence successfully evading impacts from oversupply in the third quarter by shipping less TV and consumer-electronics panels. In the fourth quarter, CPT`s area of small and medium panels shipped is expected to rise to 70% to 80%, helping to improve profitability.

In the third quarter, CPT shipped 137 million small- and medium-sized panels, a record quarterly high, as well as a 22.8% quarter-on-quarter (QoQ) and 35.3% year-on-year (YoY) increase, with such shipments accounting for 60% of CPT`s total shipments during the period.

In the first three quarters, CPT shipped 346 million small- and medium-sized panels, up 41.2% YoY, and is expected to ship some 500 million such products this year.

China’s flat-panel queen calls for further industry cooperation [Jan 3, 2012]

Bai Weimin, vice president of the China Video Industry Association. (File Photo/Yen Chien-lung)
Bai Weimin, vice president of the China Video Industry Association. (File Photo/Yen Chien-lung)

Taiwan’s flat-panel sector should further its cooperation with China so that both sides of the Taiwan Strait can jointly establish industry standards for smart televisions, tablet computers and next-generation AMOLED display technology, says Bai Weimin, vice president of the China Video Industry Association.

In an interview with our Chinese-language sister newspaper Want Daily, Bai, who has been dubbed “China’s flat-panel queen,” said there was a large gap between the number of flat panels supplied by Chinese manufacturers and annual demand in the mainland market. China produced 100 million color televisions annually, while local manufacturers such as BOE could only supply over 20 million panels, Bai said.

Therefore, Bai said she encourages Chinese companies to import flat panels from Taiwan. She expects procurement in 2012 to total US$4 billion, the same amount as last year.

Last June, Bai announced a flat-panel procurement deal worth up to US$5.5 billion, when she visited Taiwan. It was difficult to implement nearly 80% of the deal towards the end, Bai said, given the poor market environment prevailing in western countries, the leading export market.

Bai also said that China’s purchases of Taiwanese flat panels doubled between 2008 and 2010. The average size of panels had also increased from 2009’s 30.3 inches to an estimated 39.5 inches in 2011.

Bai hopes that the Taiwanese government’s restrictions — only allowing flat-panel makers to adopt production technology one generation behind Taiwan’s in their Chinese operations — will be lifted soon.

Furthermore, she said several Taiwanese flat-panel makers had established joint ventures with Chinese television manufacturers, such as AU Optronics‘ collaboration with Haier and TCL, and Chimei Innolux‘s venture with Hisense and Konka. These companies, along with six others, were also members of a task force set up in 2008 to promote the flat-panel display industry across the Taiwan Strait.

Bai added that cross-strait cooperation should be further strengthened and should focus on improving post-sales service, standardization of technology, closer exchange and capital cooperation.

Speaking of her forecast for the global television market, Bai said she expects global demand to fall between 220 million and 230 million units in 2012, while China will produce 120 million units. Although a great push was still required for Chinese television manufacturers to establish a global brand, Bai said, 70 million units produced in China would be sold overseas.

The ZTE way of capitalizing on the LTE opportunity

Recommeded prelimary reading:
Mobile Internet (Aug’11) [Aug 26, 2011] with a lot of additions to the original July 19, 2010 content on the following subjects:
– LTE and LTE Advanced — HSPA Evolved (parallel to LTE and LTE Advanced) — Heterogeneous networks or HetNets — Femtocells and Picocells — Qualcomm innovations in all that — Ericsson’s LTE Advanced demo — Current roadmaps on evolutions of current 3G+ broadband mobile networks

Updates: – China Mobile reportedly to obtain 4G license in December 2012 [Feb 10, 2012]

The China government reportedly will issue 4G licenses earlier than originally expected in December 2012 and China Mobile may be the first to obtain a license and adopt TD-LTE (Time Division-Long Term Evolution) as a 4G standard with commercial operation to begin in 2014, according to China-based media.

China government not expected to issue TD-LTE operating license for the time being [Jan 16, 2012]

While China Mobile has been actively promoting TD-LTE, the China government is not expected to issue a TD-LTE operating license to China Mobile for the time being, according to industry sources.

China Mobile finished initial TD-LTE trials in seven selected cities in China around the end of 2011 and has proposed a second-round of trials, but the China government has not yet approved the plans, signaling the government’s attitude to slow down promotion of TD-LTE in China, the sources indicated.

This is because 3G mobile communication services are taking off in the China market and therefore the government does not want to issue a TD-LTE operating license out of consideration for China Telecom and China Unicom, the sources said.

End of updates

Interview with ZTE President and CEO Shi Lirong during the GSMA Board Metting in Malaysia [ZTEGlobal , Aug 1, 2011]

Mr. Shi Lirong, 46, is an Executive Director and the President of ZTE Corporation since April, 2010. He served as an Executive Vice President of ZTE Corporation from 1999 to March 2010 responsible for managing the Company’s sales and business development operations. Mr. Shi held the post of Vice President at Zhongxingxin Telecommunications Equipment Company, Limited (the “Zhongxingxin”), during 1993 – 1997. Zhongxingxin is controlling shareholder of ZTE. In Feb 2001, he was appointed as Executive Director of ZTE Corporation. Combined with more than 19 years of management skills, Mr. Shi has an in-depth knowledge and understanding of the telecommunications industry. Mr. Shi holds 200,283 A shares of ZTE. Mr. Shi holds a Master’s degree in Telecommunication and Electronic System Engineering from Tsinghua University, and a Master’s degree in Engineering, specializing in Telecommunications and Electronic Engineering from Shanghai Jiao Tong University (SJTU). FROM: http://wwwen.zte.com.cn/en/press_center/news/201004/t20100408_181868.html

Hi3G and ZTE Jointly Announce the Availability of World’s First LTE FDD/TDD Dual-mode Commercial Network [ZTE press release, Dec 15, 2011]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, in collaboration with Swedish carrier Hi3G, has announced that the world’s first commercial LTE FDD/TDD dual-mode network has gone live in Stockholm, Gothenburg and Malmo.

Hi3G is committed to upgrading its network to enhance the subscriber experience with significantly faster radio access speeds and a much more extensive range of data services. Hi3G signed this LTE network contract with ZTE, in March 2011, to cover the whole of Sweden.

Jörgen Askeroth, CTO of Hi3G, commented: “This network fully indicates the practical use of the mature LTE multi-mode convergent solution. It allows us to extend the partnership with ZTE.”

Mr. Wang Shouchen, VP of ZTE said: “With the advent of the NMT in 1981, the people in the Nordic region were the first to benefit from genuine cellular coverage. Thirty years on, they will be the first users to benefit from the services delivered by the world’s first dual-mode 4G network. And they can roam to other LTE networks all over the world. It is not only high speed wireless services that new technology brings, for Hi3G this is also an opportunity to evolve the network.”

This commercial dual-mode network will greatly enhance the network performance of Hi3G and provide better service experience to local users. The network roll out enables Hi3G to significantly reduce its total cost of ownership by adopting a whole new generation of green energy-saving base stations. As Hi3G improves its competitiveness, more and more “affordable and easy advanced services” will be available to Hi3G subscribers.

ZTE Roadshow Germany [Sept 18, 2011]

ZTE, E-Plus and China Mobile Reveal Industry’s First TD-LTE Compact Smart Antenna [ZTE press release, Dec 19, 2011]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, German carrier E-Plus and China Mobile, all members of the Next Generation Mobile Network Alliance (NGMN), have publicly demonstrated the industry’s first TD-LTE Compact Smart Antenna which is approximately half the size of traditional TD-LTE solutionson the market.

Mr. Wang Shouchen, VP of ZTE says: “At present, spectral resources are very scarce all over the world. More and more European operators are showing interest in TD-LTE. However, the size of traditional TDD smart antennas can make installation a real challenge and push CAPEX up significantly. The TD-LTE Compact Smart Antenna is half the size of traditional TD-LTE antenna and reduces the cost and time taken for installation.”

The TD-LTE Compact Smart Antenna was showcased at NGMN’s Multi-Antenna Technology Conference in Dusseldorf, Germany. The demo showed a peak rate of 8Mbps at the cell edge with beam forming technology on 10MHz bandwidth.

The TD-LTE Compact Smart Antenna showcase follows successful field trials between ZTE, E-Plus and China Mobile, in 2011, that consisted of several streams investigating the capabilities of ZTE’s commercial SDR equipment and best use of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.

Zhu Xiao Dong, CTO of European Marketing, ZTE [LTEWorldSeries , Nov 15, 2011]

Zhu Xiao Dong, CTO of European Marketing at ZTE discusses his thoughts at 2011’s LTE World Summit in Amsterdam (May 17 – 18).

ZTE Wins Informa LTE Award for Best Enabling Technology [ZTE press release, Nov 21, 2011]

imageZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, today announced its ZXSDR BS8920 micro base station won the 2011 Informa LTE Award for Best Enabling Technologyat the LTE North America conference in Dallas, Texas.

The ZXSDR BS8920 was developed based on ZTE’s Uni-RAN platform, and is the world’s first commercial LTE micro base station. The product’s hardware cost is 50 per cent less than traditional distributed base stations, and its auxiliary facility costs are 30 per cent less in comparison. It is compact and lightweight and supports all-standard LTE bands. Its low power consumption helps operators reduce total cost of ownership.

The Informa award solidifies ZTE’s leading position as a provider of commercial LTE products, all-network solutions, and enhanced small cell coverage technology that can be used in airports, shopping centers, subways and other indoor hotspots. Awards at Informa-sponsored LTE North America are considered highly competitive in the telecommunications industry. The selection committee comprises delegates of global leading operators, industry analysts and media.

In first half 2011, ZTE won more LTE commercial-use contracts than it had in all of 2010 through leveraging its leading Uni-RAN technology. Further, the company has built a considerable business presence in Europe, the United States and Japan.

To date, ZTE has secured 28 LTE commercial use contracts and has teamed up with more than 90 operators to deploy LTE test networks worldwide. In Hong Kong, ZTE built the world’s first dual-band LTE commercial network; in Sweden, it built the world’s first large-scale LTE FDD/TDD dual-mode commercial network together with Hutchison 3G.

ZTE Unveils World’s First Commercial LTE Micro Base Station [ZTE press release, July 4, 2011]

ZTE’s new LTE BS8920 Micro Base Station is a technological revolution in hotspot coverage and product footprint

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, has launched the ZXSDR BS8920, the world’s smallest commercially available LTE base station. The BS8920 also has the largest capacity of any LTE micro base station at 150Mbps, with 2X10W transmit power and 2T4R modulation for a large footprint, and offers significantly lower TCO due to reduced hardware, power consumption and deployment costs.

imageThe ZXSDR BS8920 micro base station is targeted at the rapidly growing market for urban and indoor hotspot coverage, and can reduce hardware costs by up to 50 percent of distributed base stations. The design of the BS8920 encompasses key features to reduce power consumption to as low as 100W average, with up to 30 percent lower deployment costs in terms of deployment compared to other distributed base stations.

Ms. Li Jian, General Manager of ZTE’s CDMA and LTE Product Line, said, “ZTE invests heavily in research and development for environmentally friendly, low-power solutions that are versatile for operators. We are pleased to debut the BS8920 which we are already demonstrating to customers. This development will allow both end-users and operators to experience excellent coverage and meet demand with ease.”

The BS8920 base station meets industry requirements for an Omni sector eNodeB product, with less than half of the size and weight of a standard remote radio unit (RRU). It also supports all-standard LTE frequency band spectrums, and AC/DC power supply.

The newly released base-station can be widely applied in various complex environments, such as LTE hotspots, blind spots or indoor/outdoor areas, playing an important role in LTE networks and hybrid networks.

As of April 2011, ZTE has signed 18 LTE commercial contracts with operators from around the world, and has deployed 70 trial networks jointly with its partners.

ZTE releases ‘world’s smallest’ LTE base station [TechEye, July 4, 2011]

According to Gartner analyst Sylvain Fabreit is important for ZTE to look towards competing with the likes of the “more aggressive” Huawei.

“ZTE is gradually getting more of the LTE market as legacy technologies such as GSM shrink, and could be well placed to perform well.”

“Though it is a smaller chunk of business for ZTE, LTE is clearly the next step, and companies know that they have to be in the LTE game, as for example the 3G market slows down growth.”

“All the players in the market are now positioning themselves.”

While Fabre believes that ZTE could be well equipped to capitalise as the technology slowly gains ground, with Gartner forecast estimating it will account for 3.1 percent of all mobile connection by 2015, the mobile firm will have plenty to do to stay ahead of the competition.

All of the major companies have been making noise about smaller base station over the past year and a half, as the distinction is increasingly blurring with femtocellsas base stations get smaller.” Fabre explains.

“But we can be sure that ZTE rivals have developments in their own labs already.”

Interview with ZTE Senior Director – Richard Ye [ZTEGlobal, Nov 20, 2011]

At the Mobile Asia Congress 2011 [Nov 16-17, 2011], we interviewed with Richard Ye Lihe, ZTE’s Senior Director of Wireless Product Operation, Product R&D System. Please also visit our twitter and Facebook for more information of ZTE at MACHK. http://www.twitter.com/ZTEPress http://www.facebook.com/ZTECorp

More information on this blog:
China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that [June 18, 2011] which also includes information about Global TD-LTE Initiative started by China Mobile and other industry heavyweights and now already with 36 member companies
Good TD-LTE potential for target commercialisation by China Mobile in 2012 [July 13, 2011]: most importantly the TD-LTE trials by China Mobile and details of the offerings from the participant leading infrastructure vendors:  Huawei, ZTE, Ericsson (detailed desciption of their strategy + acquisition of divested Nortel assets strategic for Ericsson), Nokia Siemens Networks, and Alcatel-Lucent (with special emphasis on extremely attractive lightRadio and related QorIQ Qonverge SoCs from Freescale quite essential for that)
China becoming the lead market for mobile Internet in 2012/13 [Dec 1, 2011] which also includes vital information about close TD-LTE cooperation between China Mobile and ClearWire in US, and which will significantly determine the future of TD-LTE not only in North America but elsewhere.  Its goal is to “cultivate a robust device ecosystem that supports multi-mode, multi-band devices with minimum component complexity and cost”, and will significantly strengthen the current direction of dual-mode LTE devices. “For Long Term Evolution (LTE) to succeed, it’s ‘absolutely critical” that devices be able to support both the TDD and FDD versions of the next-generation mobile technology, according to GSM Association (GSMA) Director General Anne Bouverot.

But keep in mind:

image

ZTE places strong emphasis on the Chinese and Asia/Pacific markets, but is making steady progress toward becoming a bigger international player with some recent international LTE wins.

Strengths

ZTE experienced continued maintained strong financial performance in 2010. It was the only vendor in this space besides Huawei to achieve double-digit revenue growth, it had the best margins in the group and also had a strong cash-flow generation. This all provide evidence of long-term sustainability.

ZTE has several form factors planned for its eNodeB product, including distributed, compact, femtocell and picocell, as well as unified core.

As a stepping stone to gain mind share and market share in North America, ZTE opened an LTE lab in the U.S. to demonstrate, test and interoperate with CSPs in 2009. It has also been working toward becoming more visible in the Middle East and Africa.

Cautions

While the company is working toward emerging from China to gain more contracts and a bigger footprint in international markets, it still lacks significant presence and mind share outside its home country. But it may have difficulty competing against stronger players in the market.

ZTE’s activity remains heavily weighted toward legacy technologies such as GSM and CDMA.

From: Magic Quadrant for LTE Network Infrastructure [Gartner, May 26, 2011]

As of May 2011, Huawei has deployed over 100 SingleRAN commercial networks, which are capable of evolving into LTE, and of those that have deployed SingleRAN networks, more than 40 operators have announced the launch or the imminent launch of distinct LTE services. Huawei won the “Significant Progress for a Commercial Launch of LTE by a Vendor” award at the LTE Summit 2011, which recognized Huawei’s endeavors and achievements in the commercial rollout of LTE.

Huawei’s SingleRAN 5-Band 3-Mode 1-Cabinet solution (BTS 3900L), which won the “Best LTE Network Elements” award, leverages a sole cabinet to support up to three technologies across five frequency bands, allowing for the coexistence and interoperability of GSM/UMTS/LTE networks to make true convergence a reality and to minimize costs for operators. This solution has been selected by leading operators worldwide, including Vodafone Germany and TeliaSonera Norway, to replace their outdated legacy base stations while simultaneously initiating their LTE network deployment.

From: Huawei Wins Two Awards at LTE World Summit 2011 [Huawei press release, May 17, 2011]

Since 2010, Huawei continues to rank No. 1 for contributions to LTE standards according to ABI Research. According to the latest Evolution to LTE Report released in September 2011 by GSA (the Global mobile Supplier Association), there are 35 commercial LTE networks launched globally and 18 of them are using Huawei’s SingleRANLTE solution.

From: Huawei Wins Two Awards for Contribution to LTE R&D and Standards [Huawei press release, Nov 17, 2011]

Huawei, a leading global information and communications technology (ICT) provider, today announced its Small Cell solution recently won the award for “Best new network infrastructure solution” at 4G World 2011 in Chicago, Illinois. The win affirms Huawei’s Small Cell solution has become the market leader, and has gained high recognition by the industry in the wireless broadband area.

… Based on a deep analysis of wireless networks, Huawei launched its innovative Small Cell solution which can deploy a precise layered network based on actual traffic distribution, offering seamless coverage in hot and blind spots to improve network capacity. This enables operators to protect network investment and decrease total cost of ownership through easy site acquisition, fast deployment, green design, multi-mode convergence and smooth evolution to LTE-Advanced.

… As of Q3 2011, there are 31 Small Cell commercial networks worldwide, and 14 of them are deployed by Huawei. Huawei ranks No.1 in market share.

From: Huawei’s Small Cell Solution Wins Award for “Best New Network Infrastructure Solution” at 4G World [Huawei press release, Nov 7, 2011]

More information on this blog:
ICT Top-100 in Mainland China and the #1 Huawei [June 4, 2011]


Important Basic Concepts needed for understanding any further information:

ZTE SDR [ZTE video, Jan 1, 2009]

Software Defined Radio (SDR)

Software Defined Radio (SDR) is a term adopted by the international Software Defined Radio Forum (SDRF) to describe radios that provides software control of a variety of modulation techniques, wide-band or narrow-band operation, communications security functions (such as hopping), and waveform requirements of current and evolving standards over a broad frequency range. This technology uses a generic hardware platform to accommodate different communications standards, frequencies and modulation schemes via software modules. A wide range of radio applications like Bluetooth, WLAN, CDMA, GMS, WCDMA and WiMAX can be implemented using SDR technology.

SDR is a cost-effective and perfect solution for 2G/3G network integration and future HSPA+ and LTE evolvement. Using SDR, hardware resources can be shared and base stations need only a software adjustment to handle a new standard, saving considerable expense.

Excerpt from: SDR Creates Possibility of Smooth Upgrade [ZTE article, March 24, 2008]

Radio Access Network (RAN)

In September 2008, ZTE a global leader in end-to-end telecommunications solutions won the InfoVision award in the New Product Innovation category during the Broadband World Forum (BBWF) Europe 2008 in Brussels, Belgium, for developing and pioneering SDR solution in the global telecom industry (see Figure 1).

SDR is an innovation that seeks to unify the Radio Access Network (RAN), allowing simultaneous multimode operation on the same base station. Conventionally each technology standard has its own radio access network, which means that operators who are changing their networks to new technology standards have to deploy different RANs for each technology platform, as shown in Figure 2.

With SDR mobile operators can use both 2G and 3G networks simultaneously or seamless evolve their networks from 2G to 3G without the need of deploying a separate RAN for each service. By means of simple software configuration, operators can choose which mode or mix of modes amongst GSM, UMTS, WIMAX, CDMA2000 and TD-SCDMA to run in a base station. Figure 3 illustrates the concept of SDR with both GSM and UMTS services unified into a single RAN.

This concept has many practical applications, for example, considering that nearly all GSM operators adopt UMTS as their 3G choice, SDR offers the best solution for this upgrade without any swapping of hardware. Its compatibility with migration to technologies beyond 3G or IMT-Advanced technologies like Long Term Evolution (LTE) again ensures smooth upgrade without any network replanning.

As a state-of-the-art technology platform, SDR brings to the operators the benefit of All IP orientation. Its interfaces support packet based transmission like Fast Ethernet (FE) and Gigabit Ethernet (GE) as well as the legacy Time Division Multiplexing (TDM) like STM-1, E1, and ATM virtual circuits to ensure forward and backward compatibility in transport.

The architecture of base station is also distributed into Base Band Unit (BBU) and Remote Radio Unit (RRU) to ensure extended coverage with enhanced throughput, small size to facilitate easier and flexible roll out of networks and greater cost efficiencies in power consumption and transmission. SDR thus provides the best opportunity ever for operators to wholly evolve their networks smoothly with full investment protection and lowest Total Cost of Ownership (TCO), and it also enables deployment of green networks especially in these days of greater environmental concerns.

Together with IP technology SDR will define the world’s truly unified future proof networks. This technology innovation brings immense opportunities to the mobile industry, and like in the 1980s when forward looking operators leapfrogged their pessimistic counterparts through quick adoption of digital systems, SDR technologies will have their advantage too, and those operators who will harvest from its R&D will obviously have an advantage over the rest in the market.

Excerpt from: SDR: Building Future Proof Unified Networks [ZTE article, March 12, 2009]

Distributed BBU+RRU

ZTE first proposed the distributed BTS [Base Transceiver Station] solution in the telecom industry. Unlike the traditional centralized BTS, the distributed BTS physically separates its baseband unit and radio frequency (RF) unit and connects them via the standard baseband/RF interface (e.g., Common Public Radio Interface/Open Base Station Architecture Initiative, or CPRI/OBSAI). As shown in Figure 1, the baseband unit and the RF unit of the traditional BTS are separated into two independent function modules in the distributed BTS: Base Band Unit (BBU) and Remote RF Unit (RRU).

The RRU of distributed BTS integrates three RF units of traditional BTS: Transceiver and Receiver (TRX), Power Amplifier (PA) and RF Front End (RFE). With a protective enclosure that meets the IP55 standard, the RRU can be directly installed in an outdoor environment and in several modes: on a pole, on a wall, on a tower or in an integrated cabinet. Therefore, no equipment room space is required.

Being highly integrated, the BBU supports the same capacity as the baseband unit of traditional BTS but is much smaller. In an indoor environment, it can be installed on a wall or on an existing rack; thus, no extra indoor space is occupied. In an outdoor environment, it can be easily placed into the power supply cabinet or transmission cabinet of the BTS.

The distributed BTS is suitable for various installation scenarios as shown in Figure 2. If the equipment room has space constraints, the BBU can be installed in the equipment room, while the RRU is installed outdoors together with the antenna. In case the indoor installation space is not available, the BBU can be installed in the outdoor accessory cabinet, where the accessory equipment such as power supply, battery and transmission are placed, and the RRU can be directly installed outdoors, either with the antenna or in an integrated BBU & RRU cabinet. This integrated cabinet and the accessory cabinet can be installed on the ground or on top of the building; consequently, no indoor space is required. In the case of indoor coverage, the BBU can be installed in the basement or corridor, while the RRU can be mounted on the wall of the storey to be covered.

To support a smooth evolution in the future, ZTE adopts the Soft Defined Radio (SDR) technology in its distributed BTS, called distributed soft BTS. With this technology, the BTS can be applied in a 4G network by only upgrading the software or replacing some baseband boards. ZTE’s distributed soft BTS has the following attractions:

  • Real SDR technology supports hardware of different standards, maximally protecting operators’ investment.
    The BBU can support different standards such as CDMA, WCDMA, GSM, WiMAX, UMB and LTE by installing the related software. But the Channel Processing Module (CHM) board has to be replaced for other standards only when special chips are used on the board (at present, only the CDMA system uses special chips, i.e., Application-specific Integrated Circuit, or ASIC). As to the RRU, if the frequency band remains unchanged, it is only necessary to install the related software when supporting a different standard.
  • A variety of BBU/RRU products deliver full coverage solutions, meeting operators’ various requirements for network construction.
    The RRU products with different power specifications, such as 60 W, 40 W and 5 W, are available, and they can meet the coverage needs in urban dense areas, suburbs and countryside. Moreover, the 200 mW pico RRU can be applied for indoor coverage.
  • BBU/RRU products feature high integration, large capacity, small size and light weight, making easy installation and maintenance while reducing operators’ CAPEX.
    With the standard 2U height design, the BBU can support a capacity of 36 carrier-sectors for the CDMA2000 1X or EV-DO system. The RRU, which is 16.5 kg in weight and has a dimension of 380 × 330.2 × 152.4 mm (H × W × D), can support a maximum capacity of 6 CDMA2000 1X or EV-DO carriers and a maximum transmit power of 60 W at the cabinet top. Both the BBU and RRU provide the highest integration among the like products in the industry.

Excerpt from: ZTE’s Distributed Soft BTS Solution [ZTE article, March 24, 2008]


Branding:

[Jan 9, 2009] With many years of experiences in wireless technologies, ZTE launches OneNetwork solution including unified RAN based on SDR technology, unified all-IP core network and unified OMC [Operation & Maintenance Center] platform.

… The unified all-IP core network based on the ATCA architecture separates transmission from services and enables large-capacity transmission for mobile networks. …

[Oct 10, 2009] ZTE Opens LTE Laboratory in North America … This CDMA/LTE dual-mode laboratory is based on the Uni-RAN solution on ZTE unified Software Defined Radio (SDR) platform …

The reason for dropping the OneNetwork brand and starting to use the new Uni-RAN for a subsystem of OneNetwork is quite probably because the OneNetwork trademark had already been registered by an Australian SME company now belonging to a somewhat larger group with ~200 employees: Anittel Group Ltd.

For us this whole affair is just important for the reason that ZTE decided to use a brandname just for its RAN solution and did not try to introduce another name for the whole. This shows that the Uni-RAN solution is indeed a strategic differentiator for ZTE.


The Details of the Approach Taken by ZTE:

ZTE Technologies magazine, Feb 2011 issue [PDF] ”Tech Forum”: Business Opportunities in TD-LTE [Jan 17, 2011]

Abundant Spectrum Resources

Growth in mobile data traffic has brought new profit to mobile operators across the world. Statistics show that data revenue of Verizon, AT&T, T-Mobile, Vodafone and other mainstream operators has increased by an average of 30%. Therefore, much attention is now being focused on data and broadband services. Obtaining more spectrum resources and increasing spectrum efficiency has become of great importance.

Spectrum resources for Time Division Duplex (TDD) are abundant. 2.3GHz and 2.6GHz are the most common TD spectrum bands for TD-LTE, but most of these bands are not being used. TDD spectrum resources are available in many countries and available for many operators. Of the 300 operators who have TDD spectrum resources, 66% own 2.3GHz and 2.6GHz bands.

Promising Market Opportunities

TD-LTE is attracting leading operators around the world. Many of the top 500 telecom operators own a chunk of TDD spectrum and are vigorously pushing forward TD-LTE development.

China Mobile owns 2.3GHz and 2.6GHz TDD bands and is leading in the promotion of TD-LTE. After completing the fourth phase of its TD-SCDMA network construction, China Mobile will boast the world’s largest 3G network with 220,000 TD base stations by Q1 2011. The operator will call for bids on the evolution of its TD-SCDMA networks in the first half of 2011. Its commercial TD-LTE network is expected to be deployed in one to two years.

Mainstream European operators Vodafone, Deutsche Telekom, KPN, and O2 have all acquired TDD spectrum and are actively researching TD-LTE technologies and application models. Deutsche Telekom completed its trial TD-LTE network in the second half of 2010 and has started testing the network.

In June 2010, Qualcomm won India’s 2.3GHz Broadband Wireless Access (BWA) spectrum auction for TDD development in four regions of the country. Qualcomm has promised to set up a joint venture to build an LTE network. This demonstrates that Qualcomm has TD-LTE in its strategic plan.

Mobile operators in the U.S. including AT&T, Verizon, and America Mobil have promised to support TD-LTE. Leading operators in Japan and Korea have also played an active role in promoting TD-LTE. Other operators with WiMAX, PHS (1900-1920MHz), and TD-SCDMA will also choose TD-LTE as their migration path.

TDD spectrum is easy to acquire, and there is less competitive pressure in acquiring it. The price of TDD spectrum in each country is much lower than that of FDD spectrum. Because FDD spectrum is very limited and expensive, more and more operators are considering TDD for feature-rich data services and hotspot area coverage.

Using time division technique, TD-LTE allows flexible timeslot allocation in the downlink and uplink. This meets both voice and asymmetric data needs and greatly increases spectrum efficiency. TD-LTE can share the same core network with an FDD system and can support flexible networking. It can serve as an independent network for hotspots and blind area coverage or as a supplement to the FDD system for data services. LD-LTE has promising and widespread applications.

Fast-Growing TD-LTE Industry

Driven by operators, standardization organizations, equipment vendors, and chipset makers around the world, the TD-LTE industry is growing rapidly. Members of the Next Generation Mobile Networks (NGMN) Alliance include China Mobile, NTT DoCoMo, Vodafone Orange, T-Mobile, AT&T, as well as 29 mobile network and terminal suppliers including Ericsson, Nokia, Samsung, and ZTE. Together these companies are actively promoting standardization of TD-LTE. So far, 3GPP R9 specifications have been completed, and the standardization progress of TD-LTE has kept pace with that of LTE FDD. Testing of TD-LTE technology and networking organized by the LTE/SAE Trial Initiatives (LSTI) was first conducted by China Mobile and has produced favorable results.

The TD-LTE industry chain has been established and is growing fast. It comprises chipset providers, terminal providers, infrastructure equipment manufacturers, and testing instrument providers.

All chipset providers plan to launch 3G/LTE multimode chipsets in early 2011. The development of LTE chipsets drives the development of terminal products. Nokia, Samsung, LG, Motorola, ZTE, and Shanghai Bell will unveil a number of LTE terminals in 2011. LTE TDD/FDD dual-mode terminals will be the mainstream offerings, and this will further promote the flexible deployment of TD-LTE.

Equipment manufacturers Ericsson, Nokia-Siemens, Alcatel-Lucent, ZTE, and Huawei have all developed TD-LTE series equipment that can be applied in different scenarios. These products have been tested in the TD-LTE trial networks of China Mobile and overseas operators. Presently, they support 2.3GHz and 2.6GHz bands and will support 1.9GHz and 2.1GHz bands in the future.

Test instrument manufacturer Anritsu has announced its MT8820C will support TD-LTE radio testing. Rohde & Schwarz and Anite also provide many types of testing and measuring equipment.

As the industry chain matures, commercial TD-LTE is just around the corner.

ZTE Leads the TD-LTE Industry

Smooth evolution

ZTE provides a Uni-RAN solution based on an innovative SDR [Software Defined Radio] hardware platform. The Remote Radio Unit (RRU) supports 700MHz, DD spectrum, 900MHz, 1800MHz, AWS, 2.1GHz, and 2.6GHz bands. The Base Band Unit (BBU) supports GSM, UMTS, and LTE radio modes, which allows for fast network deployment. The Uni-RAN solution enables smooth network evolution while protecting investment to the greatest possible extent. This helps operators significantly reduce their TCO.

Large-capacity base stations

ZTE’s single BBU supports up to 18 TD-LTE cells, each having a bandwidth of 20MHz. The maximum throughput per cell is 100Mbps in the downlink and 50Mbps in the uplink, and the RRU provides power output of up to 2×20W. The RRU also supports multiple modes for different coverage scenarios. Both IP over E1 and IP over PE/GE are supported. Flexible networking and good scalability helps operators cut their network construction costs.

Compact and eco-friendly design

ZTE’s distributed BBU+RRUenables simple and flexible zero-footprint deployment. The BBU is the smallest in the industry and can be mounted on the wall or embedded in a 19-inch rack to save space. The RRU is small and lightweight. It is naturally cooled, silent, and saves power.

End-to-end full-service solution

ZTE is dedicated to offering TD-LTE products that meet various deployment scenarios. Its end-to-end, customized, full-service solution encompasses services, core networks, radio systems, and terminals.

Worldwide deployments

With fast growth of the industry chain, TD-LTE trial networks have been deployed in China, Japan, India, Russia, Germany, Ireland, and the U.S. As of October 2010, ZTE has signed agreements with ten leading operators to build TD LTE trial networks. ZTE is leading the industry in TD-LTE deployment worldwide.

  • China Mobile started TD-LTE tests involving an indoor system, terminal chipset, and large-scale outdoor network at the end of 2008. It plans to initiate TD-LTE trials in Shanghai, Guangzhou, Shenzhen, Nanjing, Hangzhou, and Xiamen in early 2011. A total of 3000 TD-LTE base stations will be deployed, and ZTE will be one of the main vendors for the network deployment.
  • ZTE was chosen by Europe’s largest mobile operator to supply TDD equipment for TD-LTE field testing in February 2010. Phase I of testing was completed in July and produced good results. Phase II and III are expected to be completed in the first half of 2011.
  • India issued two BWA licenses in August 2010, and ZTE entered into an agreement with major local operators to help them build several TD-LTE trial networks across the country.
  • In September 2010, ZTE cooperated with Russia’s largest integrated network operator to deploy a 2.3GHz TD-LTE trial network in Sochi. ZTE demonstrated a peak data rate of 130Mbps and won high praise from Russian leader Vladimir Putin.

Conclusion

The abundant spectrum resources, technical advantages, and flexible networking features of TD-LTE may translate into great market opportunities. As the industry chain matures, TD-LTE has promising commercial prospects. ZTE was one of the earliest players in the TD-LTE field and has an industry-leading outlook. With its visionary outlook and years of TDD experience, ZTE is developing excellent TD-LTE concepts and solutions. The company is working together with operators worldwide to create higher value and to seize upon new market opportunities.

Hi3G Is Poised to Lead the LTE TDD/FDD Convergent Era [ZTE use case, May 20, 2011] —ZTE helps Hi3G to build the world’s first LTE TDD/FDD dual-mode commercial network

The world has witnessed the remarkable achievements made by the European telecommunications industry. Up to now, the European operators have won half the seats among global high-end operators. Europe is usually the pioneer in adopting new technologies and businesses.

Hi3G is ranked the fourth in the market share in Sweden and Denmark. At present, its competitors have deployed LTE networks in the Nordic market, which cause great impact on the 3G development of Hi3G. Therefore, it is very imperative for Hi3G to launch LTE.

While manyhigh-endoperators adopt the traditionalFDD mode, Hi3G believes that after FDD and TDD standards converge, TDD will not only help build a network with the same quality as FDD, but also have cost advantages, for example in spectral resource. Therefore, building TDD/FDD LTE dual-mode networks is the best choice for operators. In addition, with only 2 x 10MHz in 2.6GHz band awarded for FDD in both Sweden and Denmark, Hi3G will not be able to provide competitive data throughput in hotspots. Fortunately, the use of TDD/FDD LTE hybrid networking can provide high-rate services and take advantage of the existing spectral resource according to the service type.

In Sep 2010, Hi3G issued tender documents, requiring all vendors to provide an LTE TDD/FDD dual-mode networking solution. In this solution, interoperability between TDD/FDD LTE and Hi3G’s existing UMTS should be implemented. Moreover, the FDD LTE network should provide wide coverage, both TDD and FDD should be applied in the same hotspots, and later, the TDD LTE network should be further expanded in hotspots. Last, the entire convergent network must be completed within three months from equipment delivery to installation and commissioning.

Figure 1 Application Scenario of TDD/FDD Multi-Mode, Multi-Frequency Networking

At the early stage of bidding, Hi3G selected two suppliers to roll out LTE in Sweden and Denmark. As the project proceeded, ZTE finally stood out in the competition by virtue of its advanced LTE TDD/FDD dual-mode solution, multi-mode SDR platform, diversified BS forms, customized transmission solutions, leading multi-mode terminals, powerful delivery and logistics. In March 2011, Hi3G selected ZTE as the exclusive vendor to deploy LTE.

While meeting the requirements for interoperability and load balancing between hi3G’s existing 3G network and LTE network, the TDD LTE/FDD LTE/UMTS multi-mode convergent networking solution provided by ZTE effectively improved system security and stability, and hence ensured the network throughput in hotspots. By sharing the existing resources including BBU, antenna, GPS, transmission, OMC and EPC, the LTE TDD/FDD dual-mode convergent network not only helped Hi3G to reduce site investment and network maintenance cost, but also accelerated the network construct speed.

Figure 2 Topology of LTE TDD/FDD Dual-mode Networking

Specific to the system interference concern caused by co-site of TDD LTE, FDD LTE and UMTS networks, ZTE offered a co-antenna solution, which won high recognition from Hi3G. In this solution, ZTE adopted 2-path broadband antennas to effectively relieve interference of TDD LTE to FDD LTE through antenna isolation and customized combiners.

Figure 3 ZTE’s Co-Antenna Solution (Applied in Sweden)

It is known that hotspots have high requirements for network throughput. Besides, Hi3G has limited site resource and hoped to make use of the existing UMTS network site. Moreover, the winter temperature is very low in Sweden and Denmark. Therefore, very high requirements are put on the base stations in terms of capacity, size, installation flexibility and performance. In response to that, ZTE provided diversified LTE base stationsto completely satisfy the customer’s site requirements with good performance even at the temperature of 40° below 0. In this project, by adopting different combinations of ZTE’s FDD/TDD dual-mode SDR base stations, small-capacity outdoor BBU cabinet, large-scale outdoor cabinet and outdoor distributed base stations, the eNodeB system can be conveniently installed indoors, outdoors, mounted on a tower, under a tower or even installed with no equipment room. As a result, the eNodeB removed the need for extra civil engineering expenditure, decreased the engineering installation difficulty, and hence accelerated network construction for Hi3G.

As a global pioneer in 3G, Hi3G is of course unwilling to lag behind in the field of 4G network operation. For operators, failure to put a network into commercial use on time not only leads to a tremendous loss of revenue, but also runs the risk of lagging behind the competitors. By providing diversified terminals and rapid network construction, ZTE can help Hi3G to achieve fast commercialization of LTE.

On the terminal side, ZTE launched the world’s first Qualcomm chipset based data cards. By supporting 3G, TDD LTE and FDD LTE systems simultaneously, these data cards will help Hi3G to commercialize its LTE network rapidly in terms of business model.

On the engineering delivery side, aimed at “global leader in delivery”, ZTE has set up professional project management processes and teams from site acquisition to civil engineering, equipment installation and equipment room maintenance. Hi3G was very satisfied with ZTE’s standardized project operation and high-quality delivery.

Peder Ramel, CEO at Hi3G, said, “We have chosen ZTE for additional 3G 900/2100 rollout and for LTE mobile broadband networks in Sweden and Denmark because of the possibility to house three different mobile standards in the same physical infrastructure and the low cost of ownership. Furthermore, ZTE advanced LTE dual-mode solutions and quick consignment responses really meet our requirements.”

[The company was founded in 2001 and is based in Stockholm, Sweden. Hi3G Access AB operates as a subsidiary of Hutchison Whampoa Ltd. of Hong Kong. The HWL as an international corporation reported turnover of approximately HKD326 billion (USD42 billion) and HKD187 billion (USD24 billion) for the year ended 31 December 2010 and for the six months ended 30 June 2011. HWL is the world’s leading port investor, developer and operator, the world’s leading health and beauty retailer, one of Asia’s largest retailers, and a pioneer of mobile multimedia communications with the launch of third-generation (3G) mobile phones and networks under the “3” brand meaning 3G service.

From wikipedia: In Sweden the mobile network is shared with Telenor, except for cities like Stockholm, Gothenburg, Malmo, Lund and Karlskrona where they handles their own 3G networks, but this practise is not allowed in Denmark. In the spring 2011 3 started, without Telenor, to build their own 3G Network on the UMTS 900-band which will give a bigger coverage. 3Sweden is the only operator in Sweden that have the licence to build 3G at the UMTS900 band. Today 3 Sweden covers about 98.5% of the swedish population. … 3Sweden is for the fifth year in a row the best operator for Mobile Broadband and has the best 3G-coverage in Sweden.

3 in Sweden is 60% owned by Hutchison Whampoa and 40% by Swedish Investor AB, founded and still controlled by the Wallenberg family and having SEK 181 billion (US$ 26.3 billion at current rate) investment in the end of 2010. 3 in Sweden is not even the core investment of Investor AB for which such names as Atlas Copco (16.7%), SEB (20.8%), ABB (7.3%, AstraZeneca (3.7%), ERicsson (5%), Electrolux (13.6%), Husquarna (15.7%) and Saab (30%) were the core ones.]

E-Plus and ZTE Strengthen Partnership [ZTE press release, Sept 13, 2011]

Senior executives meet in Berlin to confirm expansion of mobile devices portfolio in the German market

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly listed global provider of telecommunications equipment and network solutions, will today meet with senior executives from the E-Plus Group, at the BASE media meeting in Berlin, to confirm the expansion of its mobile devices’ portfolio in the German market.

Since 2010, ZTE and E-Plus, one of the largest operators on the German mobile telecommunications market, have been collaborating on the expansion of E-Plus’ broadband network. Following the successful launch of the ‘BASE Lutea’ smartphone and the ‘BASE Tab’ in the German market, E-Plus will introduce mobile devices designed by ZTEto enable subscribers to take advantage of the data services offered by its advanced mobile data network.

“Our partnership with ZTE has seen an impressive level of commitment from the entire team, helping us to push our services forward and expand our data network,” said Thorsten Dirks, CEO of E-Plus Group. “Due to the rapid implementation of ZTE’s 3G network technology, E-Plus and KPN have been able to offer broadband network services to more than 500,000 subscribers each week. The basic service provision required for each subscriber is constantly evolving in response to the mobile data services offered over the HSPA+ network. By expanding our partnership, E-Plus customers will enjoy further benefits from the advanced devices and network services offered.”

ZTE continuously strives to provide high quality products and excellent services, and aims to become E-Plus’ most reliable and long-term partner,” said Shi Lirong, President and CEO of  ZTE Corporation. “Through our focus on convergence, innovation and green technology, we aim to provide E-Plus and KPN with the most technologically advanced and economically valuable solutions. We are proud and honoured to be chosen as a strategic partner by E-Plus and KPN.”

The BASE media meeting will see over 500 top decision-makers from media, economics, politics as well as personalities from the worlds of sport, art and culture come together to celebrate the successful partnership between the two companies.

About the E-Plus Group

The E-Plus Group is the challenger on the German mobile communications market. Simple services tailored to customer needs and a major reduction in call and data charges can be traced back to the initiative of the third-largest mobile network operator in Germany. Having revolutionised the voice market for larger user groups, the company is now opening the mobile data market to the masses by means of its massive network roll-out and highly attractive low-priced data tariff schemes. As a result of innovative business models, modern structures and strong partnerships, the E-Plus Group was able to significantly strengthen its market position and develop more dynamically and profitably than the market. Since 2005, E-Plus Mobilfunk GmbH und Co. KG has developed into a family of brands offering target-group-specific services and is thus breaking new ground in mobile communications in Germany. The flat-rate brand BASE and the mobile discounters simyo and blau are market leaders in their segments, while the original E-Plus brand offers a range of services to its existing customers. The brand AY YILDIZ is aimed at the Turkish community in Germany. Vybemobile is intended to appeal to young music lovers. The partners of the E-Plus Group include many other brands, such as MEDIONmobile (ALDI TALK) and music TV station MTV. More than 21.5 million customers are using the network of the E-Plus Group to make calls and send text messages or data. The Group generates an annual revenue of €3.2 billion (2010) and employs more than 2,650 people (FTE) in Germany.

Partners ZTE and KPN Mobile International announce LTE Trials [ZTE press release, Feb 17, 2011]

ZTE and KPN today announced a joint development programme focussed on the application of LTE technology in Germany and Belgium. KPN Mobile International and ZTE have scheduled a field trial program for 2011 to investigate the capabilities of ZTE’s commercial equipment. The co-operation gives KPN the flexibility to speedily upgrade its network equipment to LTE in the future, if demand is there.

The 2010 spectrum auction in Germany put LTE network technology firmly on the agenda and gave KPN the opportunityto further enhance its competitiveness in the market.

“ZTE is a telecommunications equipment market challenger in Europe, very much in line with E-Plus’ and KPN Group Belgium’s development strategy,” said KPN Mobile International CTO Erik Hoving. “This agreement further strengthens our cooperation in the telecommunications market. It has strategic significance for both KPN and ZTE in Europe, and also in terms of each company’s international market position.”

“We appreciate that KPN selected ZTE as a strategic partner and we are strongly focussed on the long-term partnership between our companies,” said Shi Lirong, President and CEO of ZTE Corporation. “We support KPN with world-class telecom technologies and effective solutions with the lowest total cost of ownership in the industry to build high-speed networks. ZTE’s advanced and future-proof SDR technologyhelps KPN optimise its operation efficiency to meet increasing demands and develop value-added services for their customers.”

In December 2009, ZTE and KPN announced plans to conduct a comprehensive expansion of HSPA networks in Germany and Belgium starting in 2010. The programme was designed to establish a strategic partnership between the two companies for the development of future-proof networks in Belgium and Germany.

Under the agreement, ZTE has started a program to help transform KPN networks in Germany and Belgiumover a three year period using ZTE’s SDR (Software Defined Radio) technology to provide users with HSPA + high-speed data services which enable cost-effective mobile broadband communications.

As a result of the seamless transformation from the existing network to the new one, KPN will be able to offer its customers in Belgium and Germany faster high-speed data services of upto 21.6 Mbps, enabling the operator to offer new mobile broadband services.

The initial agreement between ZTE and KPN involved the provision of access network technology, but has extended to cover end-to-end solutions including core network and wireless access technologies and Android handsets. The packet-based core network equipment deployed in Germany is now in commercial use, and can be easily upgraded to future technologies. More recently ZTE delivered the co-branded Lutea smartphoneto KPN’s E-Plus in Germany and KPN Group Belgium in December 2010.

During the year 2010, ZTE established a new company in Belgium, and opened a new office in Düsseldorf dedicated to the KPN transformation project as well as several new regional offices in Germany. In addition, ZTE also set up a customer Training Center in Germany and a 24/7 help deskto provide local support to KPN. By consistently delivering on its commitments, the company has proved its ability to deliver at the high level expected by European operators. To better support KPN, ZTE has created a diverse team consisting of technical experts from China and Europe.

About KPN
KPN is the leading telecommunications and ICT service provider in the Netherlands, offering wireline and wireless telephony, internet and TV to consumers and end-to-end telecom and ICT services to business customers. KPN’s subsidiary Getronics operates a global ICT services company with a market leading position in the Benelux, offering end-to-end solutions in infrastructure and network-related IT. Getronics manages 2.2 million workspaces. In Germany and Belgium, KPN pursues a Challenger strategy in its wireless operations and holds number three market positions through E-Plus and BASE. In Spain and France, KPN offers wireless services as an MVNO [mobile virtual network operator] through its own brands and through partner brands. KPN provides wholesale network services to third parties and operates an efficient IP-based infrastructure with global scale in international wholesale through iBasis.

The E-Plus Group, China Mobile and ZTE collaborate for TD-LTE field trial in Germany [partner news on NGMN site, Feb 11, 2011]

The E-Plus Group will launch a TD-LTE field trial in Germany in Q1 2011. The trial is based on 2.6 GHz spectrum that E-Plus acquired in the German spectrum auction. China Mobile, with its leading position and rich experience in the operation and maintenance of TDD networks, will provide technical support to this trial. ZTE will provide base stations developed on the advanced SDR platform and co-siting solution of LTE FDD/TD-LTE, which is a breakthrough in the industry.

The E-Plus Group is the third largest mobile network operator in Germany. The E-Plus Group has been one of the most innovative mobile operators during years. After revolutionizing the mobile voice market for larger user groups E-Plus is now opening the mobile data market for the masses with low-priced data tariff schemes and the roll-out of a HSPA+ network with speeds up to 21.6 Mbps. On top of the high speed mobile data network roll out, E-Plus will now test TD-LTE in the field. The E-Plus Group is one of the founding members of the Next Generation Mobile Networks (NGMN) Alliance.

The E-Plus Group and ZTE agreed and scheduled a field trial program for 2011 consisting of several streams to investigate the capabilities of ZTE’s commercial SDR equipment and best utilisation of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.

China Mobile claims the largest number of mobile subscribers in the world. From TD-SCDMA to TD-LTE, China Mobile is devoted to promoting TDD industry being equipped with rich experience in TDD network deployment. Furthermore, China Mobile is pro-active in TDD technology globalization and convergence of TD-LTE and LTE FDD industry by seeking cooperation with overseas operators in Europe, Asia, America and Australia.

With joint effort of the E-Plus Group, China Mobile and ZTE, this trial will not only demonstrate the latest progress of TD-LTE/LTE FDD convergence in standards and industry development, but also lay an excellent ground for the full commercialization of TD-LTE.

ZTE Technologies magazine, Oct 2011 issue [PDF, Sept 9, 2011]:
Special topic “Mobile Network Modernization”

3G LTE – Bringing you closer: Now working seamlessly together

Taking a large step forward can be daunting. This is why we have based our LTE solutions on mature hardware designs for SDR centralized platforms – a field in which we already leading global suppliers – and created systems that allow fro truely seamless upgrades and, above all, super smoth performance. We also customize everything down to the last detail and proviode superior after-sales service so that you can be sure of receiving and replying on a solution that is perfect fit for your unique needs. This way, a huge step doesn’t have to feel quite so big.

Begin at www.zte.com.cn

ZTE Technologies magazine, Oct 2011 issue [PDF, Sept 9, 2011]
“Success Story”:  Cell C Striving Towards Leadership [Sept 19, 2011]

Why would a South African company choose a Chinese company to teach it how to fight and ascend to the top?

ZTE was the first promoter of SDR technology in the telecommunications industry, and in recent years, it has achieved global success with its Uni-RAN solution based on SDR. Its SDR series base stations can be smoothly evolved from GSM to UMTS and even to LTE. Only software upgrades and minimal hardware changes are necessary, and this is very appealing to operators all over the world. It is especially appealing to operators like Cell C who face the challenges of shrinking capital investment and slow-growing revenue. Since ZTE sold its first SDR base stations in 2008, more than 500,000 units have been deployed worldwide and serve more than 120 operators. These numbers prove that ZTE is the partner of choice.

ZTE’s very substantial global experience and advanced SDR technology are the reasons why the Chinese vendor was chosen to teach Cell C how to fight.

Also, by brokering a deal with the China Development Bank, ZTE has secured funding of more than 2 billion rand and has helped Cell C reduce its considerable debt. Two billion rand is so powerful that Cell C now has enough firepower to clear its path to the top of the South African telecom market.

In 2010, the Cell C network was baptized by the World Cup. A huge number of subscribers joined the Cell C network. Almost everyone in the stadium wanted to send messages to their friends and share the electric atmosphere of live football. The Cell C network had to deal with a huge influx of traffic. Supported by ZTE engineers, the Cell C network performed well and more than passed the test.

ZTE Technologies magazine, Oct 2011 issue [PDF, Sept 9, 2011]
“Success Story”: E-Plus Group Focuses on Future Technologies Made by ZTE  [Sept 19, 2011]

ZTE has signed partnership agreement with E-Plus Group and KPN Belgium. Under this agreement, ZTE will help E-Plus expand its mobile network to 4G HSPA+. ZTE is also supporting E-Plus Group to implement the LTE standard.

“The coming years will bring massive changes in the use of mobile devices. Besides voice and SMS, more and more people will make use of the Internet. Mobile browsing with a smartphone has developed dynamically into a mass market.”

Gerhard Lüdtke, access network director at E-Plus Group, believes there is good reason to invest heavily in the development of data networks. “We expect a massive increase in data volume on the networks. To absorb this, we need competent partners who can assist us to expand our networks with mature technology. ZTE is one of those partners.” KPN, the Dutch parent company of E-Plus, has been in contact with ZTE since 2005—when ZTE was its supplier of UMTS data cards.

In December 2009, E-Plus and KPN Belgium agreed to take advantage of ZTE’s HSPA+ technology to extensively expand their data network. “In the largest network expansion initiative in our history, we are making big steps every month on the road to becoming a 4G mobile operator,” said Luedtke. “This will benefit our customers who use the Internet via their mobile phones. User experience is critical; our customers demand smooth and reliable surfing.” In the second step, the new LTE standard will be introduced. Since March 2011, ZTE and E-Plus have been conducting tests on three frequency bands.

“The priority for us is the expansion of the data network with HSPA+. HSPA+ devices are available in sufficient quantities and at good prices. This is not the case with LTE,” said Matthew Geller, procurement manager at E-Plus.

Rapid Implementation

In December 2009, the contract for the expansion of the E-Plus data networks had barely been signed when ZTE began work on the project. First, ZTE installed the entire project infrastructure, setting up a team of technicians and engineers (local and Chinese) as well as a training center. ZTE trainers taught service companies, contractors, and employees working with E-Plus how to deal with the new systems. In mid March 2010, initial tests were carried out on the new system, and the results were successful.

Then there was a flurry of events. At the end of April, ZTE handed the network operator the first node B site ready for use. In June 2010, a customer help desk was set up. The help desk provides 24/7 service and guarantees short response times. That same month, interoperability tests were completed. ZTE equipment was installed on existing stations and had to be compatible with existing material. At the end of June, ZTE, Alcatel Lucent, and E-Plus signed service contracts for maintenance of the networks.

Always Close to the Customer

At the same time, ZTE set up a new project office next to the E-Plus headquarters in Düsseldorf. ZTE established regional offices to coordinate on-site activities and to support E-Plus project managers all over Germany. Regional offices are located in Munich, Berlin, Hanover and Frankfurt. This shows how important the business customer focus is. Short distance from customers means quick response times. In the first half of July, a large number of site installations were completed. In August, the last two radio network controllers of the initial phase were installed and connected to the E-Plus network. In November, ZTE completed testing on the operations support system. Thousands more sites in Germany will be upgraded or swapped with ZTE technology in the future.

ZTE’s engineering has brought several advantages to E-Plus. Data throughput has been significantly improved, and ZTE modules use less energy, generate less heat, and are compact. They can be transported easily so that installation and maintenance are simplified. ZTE also used SDR base stations for network expansion. SDR technology allows multiple wireless standards to be applied to a base station, and the change from HSPA to LTE can be done via software upgrades. This makes the E-Plus system futureproof. With the new network, the cost of logistics is reduced, support is considerable, and new services can be easily created. New revenue opportunities can be exploited in the shortest possible time.

End-to-End Solution

The agreement with E-Plus is not limited to the provision of access technology. It includes the delivery of core network technology and terminals, which provides E-Plus with end-to-end solutions—from the core network via access technology to handsets. In December 2010, E-Plus launched the first ZTE smartphoneunder the name “Base lutea” (ZTE Blade).

When asked whether E-Plus fears becoming too dependent on ZTE, Matthew Geller replied, “Europe is a very attractive destination for Asian companies. If we become disappointed with ZTE or any other Chinese company, this would jeopardize their reputation in Europe. And nobody wants that. Besides, ZTE is totally transparent. We always know who is responsible for what and what the balance sheets say. This promotes confidence.” The German Federal Network Agency, a state regulatory body, sees no problem in the close cooperation between KPN and ZTE.

E-Plus has the next wireless standard in its focus, namely, LTE. Even here, E-Plus has been working closely with ZTE. Since February 2011, E-Plus has been conducting LTE field tests on ZTE technology using three frequency bands. The technology is being prepared for deployment of LTE in the E-Plus data network.

Learning from China Mobile

In Germany, the 2.6 GHz band is being used for TDD-LTE trials for the first time. TDD-LTE has mainly been used commercially in Asia, but E-Plus is pioneering a quasi-Asian standard in Europe. E-Plus is working together with the world’s largest mobile operator, China Mobile, and drawing on their rich experience in operating TDD technology. China Mobile brings expertise in operating and maintaining TDD networks and has supported the tests done by E-Plus.

However, conditions in China differ to those in Germany, particularly in relation to customer behavior and acceptance. TDD-LTE services large populations in China and throughout Asia, and it is the only way to offer fast Internet access in Germany without the using expensive fiber optics. Therefore, the standard has been well received to date. Gerhard Lüdkte of E-Plus is confident that Germany will accept the new technology.

Double Challenger Strategy

“We are a challenger in the German mobile market, and ZTE is also a challenger in their field. The chemistry between the two companies is just right,” said Gerhard Lüdtke. “We had ZTE on our screen since our first contact in Shenzhen in 2005. In Asia, ZTE is already an established supplier of sustainable technology and communication. They have a remarkable track record of projects in various states, not only in China. As for the technology, ZTE can compete with other suppliers and is even superior to them.” Geller added, “We need a strong partner, because we are exposed to fierce competition. ZTE provides us with solutions that simply work well.”

“With our power to innovate, we push E-Plus to the forefront. E-Plus can absolutely rely on us as a partner,” says Li Jun, CEO of ZTE Holland and head of the network expansion project at E-Plus and KPN Belgium. “For us, the network expansion for KPN International is a milestone on the way into the European market.”

ZTE Technologies magazine, Oct 2011 issue [PDF, Sept 9, 2011]
“Solutions”: Uni-RAN – A Perfect Way to Modernize Mobile Networks [Sept 19, 2011]

Demand for Network Modernization

Mobile broadband continues to develop and succeed at a phenomenal pace. The Global mobile Suppliers Association (GSA) confirms that as of May 2011, more than 99.5% of the world’s WCDMA operators have deployed HSPA on their networks, and over 30% of them have evolved to HSPA+. The GSA also anticipates that 81 LTE networks will be in commercial service by the end of 2012 in addition to the existing 20 that have been launched commercially. The rapid growth of mobile broadband has placed high requirements on architecture and management of mobile bearer networks.

GSM/EDGE has by far the largest subscriber base, accounting for more than 88% of global mobile subscribers. Yet most GSM operators are now facing pressure from the growing demand for data services and declining ARPU. Legacy network devices and architecture are barely able to meet the requirements. It is therefore imperative to modernize legacy mobile networks for high profitability and sustainable development.

ZTE’s Uni-RAN Solution

To modernize networks, ZTE has developed an innovative Uni-RAN solution that ensures smooth evolution and easy O&M without affecting existing services.

Smooth evolution

Uni-RAN adopts a unified SDR platform that supports multiband and multimode radio configurations. The CN and OMM parts of multiple radio systems are converged in Uni-RAN. This simplifies network architecture and makes network O&M easier and more reliable. By updating software and minimizing changes to hardware, Uni-RAN allows for smooth evolution from GSM/EDGE to WCDMA and then to LTE. In network modernization, it is quite important to balance investment in equipment, network O&M, and network profitability. Because it allows for smooth evolution, Uni-RAN can extend the lifecycle of a network for longer time.

Flexible networking

ZTE’s SDR base stations come in various types, ranging from indoor macro base stations for dense, high-traffic urban areas to outdoor micro base stations for remote coverage in suburban areas. The advanced BBU+RRU structure is suitable for almost all application scenarios, and installation is also easy and efficient. Compared with legacy indoor macro base stations, the BBU+RRU design saves more than 75% of equipment room. With diverse base stations and flexible networking mode, Uni-RAN helps operators economize on manpower and material resources.

Outstanding performance

Uni-RAN has performance advantages that help operators reduce OPEX, especially transmission and energy costs. The all-IP platform used for SDR base stations greatly enhances communication efficiency and saves on rental fees for E1 transmission. BBUs and RRUs are specially designed to suit different application scenarios. They are small, silent, energy efficient, and naturally cooled. Uni-RAN adjusts transmitting power of RF units according to real-time traffic load. These adjustments are made using software so that power consumption throughout the network is completely optimized.

Speed Up Network Modernization

By the end of 2010, ZTE had deployed GSM/UMTS networks for 120 operators in more than 100 countries. ZTE’s SDR equipment―the c o r e o f U n i – R A N ― has been recognized by operators worldwide since it was first launched in 2007. ZTE has achieved large-scale breakthroughs in the global high-end telecom market with the SDR base-station platform. Companies in Europe, such as KPN, Telenor, Telefonica, Optimus and H3G, are using SDR base stations deployed by ZTE. In 2010, the total shipment of ZTE’s SDR base stations exceeded 700,000 units.

Driven by an upsurge in mobile network modernization around the world, ZTE has seized the opportunity to focus on network swapping projects. The company has helped 67 operators in 29 countries modernize their networks, swapping more than 200,000 base station sites. In the first half of 2011, 160,000 GSM/UMTS carriers were successfully swapped by ZTE. Through cooperation with leading operators, ZTE has gained rich experience in network swapping and enhanced capabilities in logistic, engineering, and network optimization.

CSL: create a simple network

CSL is the largest mobile operator in Hong Kongwith more than 3 million subscribers. CSL had four original mobile networks: a 900MHz GSM network, two 1800MHz GSM networks, and a 2.1GHz UMTS network. The maximum download rate supported by the UMTS network was only 2.1Mbps, which was insufficient for meeting the requirements of 3G subscribers. Various NMS interfaces were being used to accommodate multiple modes and frequency bands. So CSL had difficulty managing and maintaining individual networks. The complicated network architecture also made it difficult to evolve networks and ensure QoS.

In 2008, CSL chose ZTE as a partner in its network reconstruction. Using Uni-RAN, CSL completely converged its GSM 900/1800M, UMTS 900M, UMTS 2.1G and LTE 1.8G/2.6G networks within two years. Unified network management was also implemented. 2500 base station sites were swapped. The restructured HSPA+ (or Next G) network is capable of downloading data at up to 21Mbps. According to internal research conducted by CSL in 2010, data traffic has increased by more than 65 times since the Next G network was launched in early 2009.

During the network swapover, CSL cut down the total number of base stations from 5050 to 2050, replaced original E1 transmission with FE transmission, and saved 20% transmission resources. CSL reduced network OPEX by 35.7% and greatly improved its profitability.

Ncell: make a miracle on the Top of Mt. Everest

Ncell is a wholly owned subsidiary of TeliaSonera and is the second largest mobile operator in Nepal. Its network covers 42% of mobile subscribers in the country. Ncell aims to capture the largest market share.

Nepal contains part of the Himalayas, the highest mountain range in the world. Eight of the world’s ten tallest mountains, including the highest point on Earth, Mt. Everest, are located in the country. Deploying base stations on the world’s highest mountain presented big challenges to Ncell.

For fast deployment and smooth evolution, Ncell adopted ZTE’s Uni-RAN solution in its network reconstruction project. Micro base stations using the SDR platform consume less power, have a small footprint, and are easy to install. A one-piece mast and insulated shelter are used for the stations, and this allows the base stations to be installed quickly without the need to move earth or construct foundations. Solar panels are incorporated into the design to ensure that base stations have power supply throughout the year and are environmentally friendly. These features allow each base station to operate at optimal levels with minimal power usage even in temperatures as low as [minus] 30˚C to 40˚C. Overcoming altitude sickness and harsh natural environment, ZTE engineers deployed eight 3G base stations on Mt. Everestone month ahead of schedule.

After 500 base station sites were swapped in the initial phase, Ncell reduced energy consumption by over 45% and saw a rapid rise in their subscriber base and data traffic.

OPhone 2.5 and beyond from Borqs for China Mobile

Recommended preliminary reading: OPhone OS (OMS) 2.0 based on Android 2.1 [July 5 – Dec 13, 2010]

China Mobile trailer video [Jan 8, 2011]

Borqs: The Early Bird Catches More Worms  [Borqs article, Nov 23, 2011]

The lower versions of Android were found to be instable, and so was TD-SCDMA system. All these brought unexpected troubles to Borqs.

At the Mobile World Congress (MWC) held in Barcelona on Feb. 14th this year, Intel Capital, Intel’s global investment organization, announced that it would invest USD 26 million in six mobile startups to help drive innovation and development of mobile hardware, software and application ecosystems. Borqs, as a software solution provider from China, was one of them. Arvind Sodhani, Executive Vice President of Intel, commented on the investment as an important commitment to the key growth fields in mobile ecosystems.

Although officially introduced as a China-headquartered Android software integrator for mobile devices at MWC, Borqs has already been known as the strategic developer of China Mobile for OPhone OS. It has succeccfully ugraded OPhone from version 1.0 to 2.5 through constantly opitimizing TD chips and network, increasing its OEM partnerships from 8 to 20. Currently, Borqs’ Android solutions have been widely used in more than 30 W-CDMA and TD-SCDMA based Android mobile devices with a total shipment of 2 million plus.

“I saw the great potential of Android, and then I thought it’s time for me to start Borqs.” Pat Chan, CEO and President of Borqs, said during an interview by CBN Weekly. According to him, Borqs was one of the only four or five companies that had access to non-complete open-source codes before the launch of Android by Google. This enabled Borqs to initiate system development one year earilier than its competitors.

The technical strength of its team also gave the company more opportunities. Pat Chan was the former Vice President and CTO of UT Starcom Incorporated, taking charge of operations of communication infrastructures (wireless, broadband and IPTV, etc.). Bob Li, Senior Vice President of Borqs as well as the partner of  venture fund, Yellowstone Capital, once held a position of senior developer at Philips Semiconductor. Rao Hong, another Vice President of Borqs, known as one of the excellent local employees trained by Motorola, was the founder of Linux-based Motorola EZX phone platform, which afterwards evolved into a famous operating system of Motorola – Linux-Java(LJ) .

At that time, China Mobile was investing heavily into mobile value-added services and developed a series of new services such as Mobile Newspaper, Fetion, Mobile Stock, Mobile E-mail Box, Mobile SNS, etc. In the Mobile Internet era, however, the trump to dominate the terminal market is to launch an independently developed operating system and pre-build customized value-added services into terminals; at least that was how China Mobile defined its marketing strategies at that moment.

As once expected by China Mobile, interface and services of Android may be replaced with China Mobile owned services – OMS and OPhone may be built onto OMS in cooperation with OEMs. So that China Mobile would launch services and advertising on its own handsets. To this end, Borqs, which has been always dedicated to Android, became the partner of China Mobile for the development of mobile operating system.

Voices of doubt about OMS system development were often heard at the beginning. “It was quite difficult. There were so many problems about campatibility and configuration. Nobody believed that we could make it“, Phat Chan said. Since mid-2007, the team had been researching and developing the operating system, and then finally succeded after two years.

However, OPhone failed to become a hit on the maket at the very start. Lenovo’s first OPhone-based product, also the first OMS handset, was initally launched at the price of RMB 5,999 yuan, expected as a powerful weapon to beat iPhone. However, its price declined to RMB 1,500 yuan as of the end of 2010.

In fact, Borqs made a number of modifications to the bottom layers of Android catering to customer demand in the process of developing OMS platform. These efforts have successfully made OPhone quite different from Android, such as appearance and kernals. But, nearly all the Androids before version 1.5 was instable, resulting in its frequent upgrates by Google. In addition, compatibility issues still exist between Android 1.0 and 1.5. All these had posed big challenges to Borqs.

What’s more, immature TD technology impacted on customer experience to some extent. At the beginning of TD’s commercialization, terminals were in severe shortage. Most OEMs only launched one or two types of handsets with lower performance in the apsects of apperance, application, interface compared with the mature 2G phones. Simultaneous work of about 7 chips were required for a TD terminal. This, plus deficiency in power consumption and adaption as well as high terminal price, led to low shipment and OEMs’ failure of making profits.

“Any tiny trouble may influence the use of handsets. Before launching Ophone 2.0, we have solved 159 TD chip related problems, and modified over 1,000 items of OPhone OS 2.5,” Pat Chan pointed out. According to him, MTBF test requiring a 200h or above of predicted elapsed time between inherent failures during operation was made to improve the stability in the course of development. This indicated that the design level of OPhone based terminals must be close to or even aligned with that of TCDMA terminals.

“The criteria of 200h was just enlightened from our partner. The MTBF value was once required to hit 800 hours when we dealt with a US company,“ Pat Chan stated. From the first-round to the fourth-round debugging, the stability of OPhone has increased from 24 hours to 255 hours. “We used to define Failure to Pass as system crash, but now even a failure to execute a single command will count”, he added.

According to him, among OPhone 2.5 based handsets launched this year, Motorola MT 620 boasts a MTBF value of over 200 hours, far surpassing other common terminals with a value of 60-70 hours. “stability is the essential premise for good consumer experience,” he said.

At the time being, chip development saw some progress too.
Marvell’s single chip solution provides the first access for TD smart terminals to stand on the same starting line with WCDMA terminals.

Marvell TD-SCDMA single chips solution, PXA320, is sponsored by the Research Institution of China Mobile. It not only help realize great improvements of chip performance, but also enables easy resolution to the soft spot in apperance design and power consumption.

In overseas markets, cooperation with Qualcomm and Infineon Technologies helps Borqs accumulate lots of experience in W-CDMA chips. Also, the company has established partnerships with some handset manufacturers in Japan and India, as well as Singtel from Singapore. One of them has used Borqs’ chip solutions on its gobal Andriod terminals.

From 2007 to 2010, OPhone accounted for 60% of our business, but now this figure has dropped to 30%,” Pat Chan said. As he stated, what make him proud most is to carve out Borqs, not that fast, but eventually recognized. He plans to further invest into technology. “Our next focus will be still on operating system, and we will also make continuous investment in cloud computing,” he further stated. For now, it is said that the research and development expenses account for 80% of the total payout at Borqs.

About Borqs
Average growth rate for three years:1054%
Founder: Pat Chan
Headquarters: Hong Kong
Core technology : End-to-end integrated software solutions for mobile Internet
Leading-edge technology: Seamless connection of mobile operators, terminals, chips and mobile Internet.
Technology revenue :R&D expenses account for 80% of the total
Financing amount: USD 35 million
Business model: Borqs is committed to providing end-to-end software solutions for mobile Internet industy, thereby helping partners map out their own solutions.

Borqs: Dedicated to End-to-end Integrated Software Solutions [China Computerworld via Borqs, Nov 4, 2011]

Ms. Wang Tun, Vice President, Business Development at Borqs International Holding Corp (Borqs) said: “We have received much attention for OMS (Open Mobile System) represented by OPhone that we developed for China Mobile. However, OMS is just part of our core business.” As far as what she said goes, China’s independently developed OMS has aroused widespread concern in recent years, bringing its developer, Borqs, under the spotlight. However, Borqs is not well known to the public yet. The technical competitiveness of this emerging tech company established in 2007 and its other operations except for OMS are still behind the curtain. Now a recent field interview may help you know more about this somewhat still mysterious company.

Dedicated to end-to-end integrated software solutions

Borqs operates in an independent six-storey white building in Wangjing Plaza, Beijing. According to an employee with Borqs, considering its robust growth in recent years, the company rented this office building in whole, but it is just one of its office locations in Beijing. During the interview in a meeting room, it was easy to be impressed by a variety of patent certificates on the wall and, somewhat surprisingly, the straightforward talk by Ms. Wang Tun, Vice President, Business Development at Borqs.

“Our business is composed of three lineups since the establishment. Borqs is not just about OS,” Ms. Wang said. Incorporated in 2007, the company is a high-tech enterprise dedicated to providing end-to-end integrated software solutions for the whole industrial chain of mobile communications. “Cloud, management and terminal”, referring to, respectively, Mobile Cloud Computing Platform, Mobile Information Management System Platform (Mobee, Mobile Widget) and OMS, were positioned as three main lineups underpinning Borqs for making its corporate objective real.

Borqs’ OMS is mainly represented by Android-based OPhone running on the Linux kernel. It is an independently developed operating system essentially different from those operating systems modified from Android in China’s market. Ms. Wang Tun said: “OMS is an open mobile intelligent software platform. It includes a Linux Kernel, middleware, Java virtual machine, application software and other applications such as FOTA [Firmware Over-the-Air], RIL [Radio Interface Layer] and WebKit. It also features high compatibility same as that of Android and Bada.”

OMS is the trailblazer of China-owned mobile operating system, but facing a fierce competition against several powerful rivals in local Chinese market, such as Cloud OS launched by Alibaba. It has been affirmed that Baidu will roll out its mobile operating system supportable to China Telecom’s CDMA 2000 standard at the end of this year. Nevertheless, Ms. Wang Tun said for sure that there was no need to worry about that.

She explained her confidence quite directly: OMS is a continued evolution of advanced technology, also an integrated solution. According to her, many new features, such as Html5 and cloud application, are hyped up by the industry, but they are immature with many defects, including slow traffic caused by real-time networking and compromised user experience by unstable network. Reversely, Borqs, rather than talking big, is always committed to improving the performances of OMS for constantly enhanced user experience. Its next-generation OMS will focus on voice intelligence, multi-screen play, LTE, IPv6, security and more powerful chips. To that end, the company has established a wide range of partnership programs with some global players, such as NEC and Singtel.

Focusing on Mobile Internet Market

The success of mobile Internet on the consumer market is just a starting point of its future rise. Together with the increasing popularity of mobile Internet and smart terminals, more applications for mobile business purpose will be created and provided for a wide spectrum of industries. Simple, efficient and safe corporate-level solutions will be bringing more benefits. With this in mind, Borqs has been striving to deliver end-to-end integrated software solutions just for business customers, with some remarkable achievements already made.

According to Ms. Wang Tun, Borqs has had some success cases in the fields of information system construction and e-government, the major part of which is mobile Internet-enabled industry application systems built upon mobile clients and mobile cloud computing on the back end. Its information management system is customized based on [its] Mobee management platform, integrating an audio/video information system for content distribution.

Also, Mr. Wang Tun disclosed that [its] Big Cloud, developed by Borqs with advanced open source technology, is designed to provide a complete, innovative solution for massive data processing and user management catering to mobile Internet. Big Cloud is a system platform innovated and developed with IRP [?Internet Resource Planning?] on mobile Internet, IT support system solution and the low-cost PC-Grid computing technology. It is a platform with high performance of reliability, availability and scalability. She even revealed that the company has been dedicated to the research of Big Cloud-related technologies since its establishment.

At present, Mobee is far from public knowledge. It is reported that Mobee is a mobile Internet application platform based on mobile information management technology, covering application management, news, e-books and audios & videos. Borqs has made a special strategy for Mobee: As the core of information management systems, it is made available for customers on a customized basis; meanwhile, generous efforts are made in brand incubation to promote its offerings such as Mobee Apps, Mobee News, Mobee Readings, Mobee Weather, Mobee Stock, etc.

Mentioning the future industry applications, Ms. Wang Tun said that Borqs, with strong technical power, is willing to create a win-win industry chain by partnering with system integrators and developers from various industries.

Now, many new features of mobile operating systems, such as Html5 and cloud application, are just hypes, rather immature with many defects, including slow traffic caused by real-time networking and compromised user experience by unstable network.

Asus T20 introduced smart phones, using OPhone 2.5 platform [Oct 25, 2011]

Asus in Beijing released T20 smart phones. According to information, released the T20 smart phones, mobile launch, working with the second paragraph TD mobile phones.

T20 in mobile leading harsh OPhone2.5 mobile terminal product special test, with minimal number, the total score of the excellent result ranked first in the first through the test, and become the first OPhone2.5 China mobile platform 3 G smartphones.

Computer China headquarters handheld division TangShiLin general manager, said on the 3 G information age, asus has issued the Windows platform of mobile phones, the M A of the Android platform of mobile phones, and began in 2009 and China mobile cooperation development TD mobile phone, support our country with independent intellectual property rights td-scdma technology standards, released Ophone system of mobile phone T, to the mobile phone released today T20, asus always insist the complete set up from the personal computing end to the clouds of the bridge operation mission, smart phones can let users instant, namely, to get more human nature on the content and all kinds of clouds service, is to the clouds of calculation an important terminal.

China Mobile Research Institute: Ophone basic catch up iPhone [Beijing Morning Post, via Google Translate, June 10, 2011]

Morning News (Reporter Jiao Likun) held yesterday TD intelligent terminal technology development seminar, China Mobile Research Institute Bill Huang said that China Mobile Ophone has basically caught up with the iPhone’s level, in addition to a technology – Multi-Touch screen.

Bill Huang pointed out that after five years of development, the Ophone has the best multi-tasking, open, API, etc. to catch up with iPhone, but still in the multi-touch in Apple’s lead.

iPhone touch screen mobile phone caused a global boom. China Mobile Ophone is the leading smartphone platform. Borqs Tun Wang, vice president of Commerce, said that so far, OPhone phone has been developed 29. To the end of last year, Ophone in TD smart device market share up to 38%.

Wang Tun said that this year will introduce OPhone 2.6 platform to support high-definition video transmission and interactive television, Ophone will use the Tablet PC Edition operating system.

Borqs to Launch OPhone 3.0 in Q1 2012 [Marbridge Daily, Netease Tech, June 8, 2011]

Wang Tun, VP of Beijing-based mobile software solutions provider Borqs, recently revealed that version 3.0 of China Mobile’s (NYSE: CHL; 0941.HK) OPhone mobile OS will be released in Q1 2012, featuring improved security, IPv6 support, and new cloud-based services.

The OPhone or Open Mobile System (OMS) is an Android-based platform that supports a number of China Mobile data services, such as mobile IM client Fetion, the Mobile Market app store, and 139 mobile e-mail. Wang said Borqs is cooperating with over 20 handset manufacturers to produce OPhone smartphones, with R&D completed on 29 handsets, more than 20 of which have already been released. As of the end of last year, OPhone accounted for 38% of the TD-SCDMA smartphone market. A number of handset manufacturers, including Motorola, Sony Ericsson, Huawei, ZTE (0763.HK; 000063.SZ), and Sharp, will continue to release products this year featuring the recently released OPhone 2.5 mobile OS, at prices significantly lower than those in the past two years.

Borqs OPhone years of “stealth” to cloud the future [Communications World Network via Google translation, Aug 15, 2011]

Communications World Network ( CWW ) 8 (Reuters) broadcast communications, an industry that is familiar and unfamiliar company, familiar because of their many years of time to focus on OPhone OS operating system platform development, and OPhone products have also been seen as a TD terminal symbol of product development; and it is because they are unfamiliar with China Mobile in the market between the origin of long-term low-key publicity.

Along the way, OPhone ups and downs

August 31, 2009 China Mobile jointly released the first batch of more than OPhone mobile terminal manufacturers, and OPhone OS 1.0 version of the operating system is also to meet with the user. Borqs Tun Wang, vice president of business media conference admitted in, OPhone end product from scratch, is a gradually mature, and gradually perfect the process. OPhone launch five platform version of the two years, more than 30 terminals, OPhone more mature; simultaneously fit all of the TD Modem and mainstream chip, driven by the industrial partners, industry, environment, maturity and development.

Initially released in 2009 to Lenovo O1 OPhone most typical mobile phone, from the terminal point of view, TD industry in terms of the chip industry is a new challenge, because chip solution immature, then a TD mobile phone chip requires about seven simultaneously, the power consumption and adapter for mobile phones and other issues, it faces enormous challenges. TD mobile phone form factor is also a single, larger one important reason. And, TD network instability also affects the user experience.

Insiders pointed out, it is undeniable that when criticized by the parties OPhone terminal operating system is not all over, in the TD network, terminal hardware support are varying degrees of problems, integrated all the factors causing the user for the OPhone misunderstandings, but also caused difficulties in the latter part of OPhone terminal advance.

OPhone early stages of development, the terminal price is a major cause of limited advance, while the single-section shipments are not ideal terminal into a terminal manufacturers are not profitable, the hardware chip count not a big bang, end the vicious cycle of high prices.

Wang Tun, concedes, Marvell single-chip solution can be said that the launch of TD industry chain of development, making TD the first opportunity to intelligent terminals and WCDMA terminals stood quite the starting line.

It is understood, Marvell’s TD-SCDMA PXA920 single-chip solution is strongly supported by the Research Institute of China Mobile TD-chip R & D projects, and the introduction of single-chip solution not only in chip performance has been greatly improved, while the terminal design and energy problems are solved.

Currently, OPhone OS version 2.5 has been reached, after the first two years of pain, the current OPhone either hardware support or software systems, are the best period of development ushered in history. Gradually introduced in the first half of this year, a variety of OPhone phone prices were 2,000 yuan, while Huawei T8300 has achieved a thousand OPhone goal, which broadcast communications, said Ray Wang, senior director of product management, the current OPhone the price of smart phones has basically become more reasonable, cost-effective but also more acceptable to users, will usher in the next outbreak.

Stability is the key OPhone

In April, Borqs released its latest 2.5 version of the OMS, based on kernel development Android 2.2 made, it is reported, OPhone OS 2.5 version compared to the previous version has more than 1000 improved, more focus on user experience. Wang Lei said, OMS2.5 whether or Widget UI design experience more in line with the Chinese people for the smart phone experience, while the Internet anytime, anywhere “with e-line” client, 2G / 3G network access to the “VPN enterprise network,” The new “mobile reading” experience, support Wi-Fi to download the “game room”, etc. are OPhone2.5 improvement highlights.

OPhone OS operating system from the emergence of the software compatibility has been criticized by the industry’s biggest problem, now the new 2.5 version of this problem has been completely resolved. Borqs Commercial Director Zou Junfeng said, “first-line OPhone phone manufacturers need Google 100% compatibility testing, while doing OPhone the outset, we and Google are the anti-secession agreement, and now in the Android market, all the software in OPhone 2.5 can be run on the phone. ”

Wang Lei said that in the year listed OPhone 2.5 phone, Motorola MT620 mobile phone has been tested time and stable operation of its independence in 200 hours or more, and now the vast majority of end-user experience of failure-free run-time is generally 60-70 hours, and stability to the user experience is an important prerequisite for good.

According to reports, Motorola MT620 terminal shipments more than 30 million, and this year with Huawei T8300 phone shipments will exceed 50 million, which will refresh OPhone new record mobile phone shipments.

OPhone from the terminal to the cloud

While the current “mobile cloud” concept continually referred to by the terminal manufacturers, mobile phone from the terminal has become an inevitable trend toward the clouds, which Wang Tun introduced to, OPhone OS 3.0 is developing next-generation version, but in this version, the “cloud “OPhone will be implanted into the phone, while the cloud service system will be realized in the end.

Wang Tun said, including cloud services such as Apple’s iCloud launch, users also enjoy the convenience of personal privacy is under threat, due to personal information are all on the cloud, personal security, and national security is bound to be under threat.

Currently Borqs ongoing services in the cloud-end R & D program, but also China Mobile “big cloud” 1.0 plan providers, I believe that with the clouds and end-system continues to mature, I believe that will provide stable and secure cloud the overall service .

http://pdadb.net/index.php?m=pdamaster&posted=1&os=a250o

image

Motorola MOTO MT620
Release Date: June, 2011
OS: Borqs OPhone OS 2.5 Chinese
CPU: 32bit Marvell PXA920, 806MHz
Memory: 512MiB RAM, 512MiB ROM
Display: 3.1″ 320×480 pixel color transflective TFT
Cellular Phone: GSM900, GSM1800, GSM1900,..

Physical Attributes:60 x 122 x 12.4 mm, 123 g

WLANBluetoothGPSdigital media tunerBuilt-in QWERTY-type keyboardCameraSecondary Camera

image

Sony Ericsson WT18 / WT18i
Release Date: June, 2011
OS: Borqs OPhone OS 2.5
CPU: 32bit Marvell PXA920, 806MHz
Memory: 512MiB ROM
Display: 3.2″ 320×480 pixel color transflective TFT
Cellular Phone: GSM850, GSM900, GSM1800,..
Physical Attributes: 56.5 x 106 x 14.3 mm, 110 g

WLANBluetoothGPSCamera

Sony Ericsson WT18i also started to launch similar mobile phones [Nov 24, 2011]

There was an increase in demand for mobile music after the launch of the Walkman series phones from Sony Ericsson. To take on phones Sony Ericsson music, other companies also started to launch similar mobile phones. Whatever the level of competition from SE Walkman phones definitely belong to a class way beyond the reach of its rivals. This time he came with the new Sony Ericsson  WT18iphone Android  to charm the masses.

After the announcement of the new W8, WT18iis the final Walkman phone from Sony Ericsson that was introduced in China. This is a phone that works with TD-SCDMA/GSMA Chinese version of the operating system Android 2.2 (Froyo) called OPhone 2.5 which is fully compatible with all Android applications. It is available on China Mobile and uses Marvell PXA920 806MHz CPU processor power. The WT18i has a 3.2-inch HVGA capacitive touchscreen with a resolution of 320 × 480 pixels.

GC Sony Ericsson WT18i1 300x209 Sony Ericsson  WT18i also started to launch similar mobile phones

Other features include the WT18i 3Mega pixel camera, 150GB of internal memory, Bluetooth 2.1 + EDR, GPS, Wi-Fi b / g / n, an FM tuner, Sony Walkman basic audio, and a micro card slot SDHC. It is also able to shoot videos 480/24p. Coming soon in China, the Sony Ericsson WT18i uses a battery 1200mAh, 56.5 × 106 × 14.3mm and weighs in a position only 110 grams.

WT18i indicated is similar to a Walkman phone Sony Ericsson W8, Sony Ericsson WT18i specifications indicate that this phone is designed for low-end marketsand cheap, young people who consider price. Sony Ericsson uses Marvell PXA 920 processor WT18i, 806 MHz clock speed and a screen 3.2 “HVGA. Device is equipped with a 150 MB the internal memory and microSD card slot (up to 32GB)

Sony Ericsson WT18i Specification and features :

  • Display: 3.2 inch HVGA capacitive touchscreen display with 320 × 480 pixels, 16M colors
  • Single-Touch and ease of handwriting recognition
  • 3GP and MP4 video
  • Camera: 3 MP camera with video recorder 480p
  • Virtual QWERTY Keyboard
  • Expandable memory: up to 32 GB MicroSD Card
  • Operating System: Android OS 2.2 Froyo
  • Connectivity: Bluetooth and Wi-Fi 802.11b/g/n options
  • Dimension: 106 x 56.5 x 14.3 mm
  • Weight: 110 grams
  • Battery: Li-ion 1200 mAh

With the Walkman W8 WT18i and advertising, things are going well for Sony Ericsson. However, these are mid-range. Hopefully they have something in reserve for high-end consumers. On the other hand, many people do not see the point of most Walkman phones. Is Sony taking a gamble with their latest offers? We think so. The most important question is: the bet will pay off eventually? Stay Connected for more news about it!

Price :

  • PKR: Rs.27, 500
  • USD: $ 299.99

The current (Nov 29, 2011) low-end offerings are the following ones:

Brand: Huawei Coolpad
Model: T83003.2″ Capacitive Screen Ophone 2.5 TD-SCDMA 3G Smart Phone w/ WiFi+GPS – Black 88093.2″ Touch Screen 3G TD-SCDMA OPhone 2.5 Android Smartphone w/ Wi-Fi + TV – Black
Price: $138.90 [elsewhere is the same street price of ¥ 888.00 = $139.21]     EUR 114.33 $141.60EUR 116.55
clip_image002 clip_image004
Color: Black Black
Special Features: Slim body,quick react screen, 3.2″ capacitive screen display, Customized App can be removed by root. TV and Wi-Fi function available, Ophone 2.5 system, fully compatible with the Android 2.2 OS applications
IMEI: Unique Unique
Format: Touch Smart Phone Touch bar smartphone
Cell Phone Weight (w/Battery) 104.0 grams 127g
Operating System: Android based, Ophone 2.5 Ophone 2.5, fully compatible with the Android 2.2 OS applications
Processor: Marvell [PXA918], 600MHZ Marvell PXA918, 624MHz
LCD Screen: 3.2-inch capacitive touchscreen 3.2-inch screen
Screen Resolution: 480 x 320 pixels 480 x 320 pixels
Touch Sensitive: Yes Yes
Network Bands: GSM/TD-SCDMA, 2G:GSM850/900/1800/1900,3G:TD-SCDMA1880-1920/2010-2025MHZ GSM/TD-SCDMAGSM:900MHz/1800MHz/1900MHzTDSCDMA:1880/2010MHz
SIM Slots: Single SIM slot Single SIM slot
Data Connections: WiFi/WAP/GPRS/EDGE/HSPA GSM/GPRS/EDGE/TD-SCDMA
Bluetooth: V2.1+A2DP V3.0
Wifi/Wireless LAN/WLAN: Yes. 802.11b/g Yes, 802.11b/g/n
Speakers: 1 Speaker Single speaker
Memory Slot Type: MicroSD/TF card up to 32GB in size (2GB memory card included) MicroSD/TF card up to 32 GB in size (2GB memory card included)
Built-in/Included Memory: 512MB ROM, 512MB RAM 512MB ROM, 256MB RAM
Digital Camera(s): 3.2MP, Picture Max Resolution: 2048×1536 pixels 300 KP front camera plus 3.0 MP back camera with 1536 x 2048 pixels resolution
GPS: Built-in GPS
G-sensor: Yes
JAVA: Yes
Playback Formats: MP3/3GP/MP4/JPG/TXT (with certain App almost all the formats are supported) MP4/3GP/MP3/AAC/MIDI
TV Tuner: No Yes, PAL/NTSC/AUTO
FM Radio Tuner: Built-in FM Radio Tuner No
Voice Recording: Voice Recording Supported Yes
Batteries: 1 x 1200 mAh lithium ion rechargeable batteries included 1 x 1450mAh lithium battery
AC Charger: 100~240V AC Battery Charger included (2-Flat-Pin Plug) AC 100~240V Power Adapter (EU plug)
Recharge via USB Port: Yes Yes
Phone Language(s): Chinese/English Chinese / English
User’s Guide: English user’s guide included English/Chinese user manual
Accessories Included: 1 x 3.5mm earphone1 x 1200mAh battery1 x USB Charging/Data Cable 1 x 3.5mm earphone1 x 1450mAh lithium battery1 x USB cable with AC adapter1 x 2GB TF card
Manufacturer’s Warranty: 12 Months excluding physical damages (see specifications for terms and details) 15 Months excluding physical damages (see specifications for terms and details)

Note that the Huawei T8300 is the TD-SCDMA specific redesign of the IDEOS X3 smartphone announced at MWC’11 (but only delivered since June’11, for around US$240 in Singapore and for around US$200 in Malaysia). The Qualcomm MSM7227 SoC (announced in Feb’09 for sub-$150 smartphones) used in X3 was not able to support TD-SCDMA so the only available SoC was Marvell’s PXA920/918 SoCs family available since Sep’09 (although capable of passing the rigorous TD-SCDMA tests only almost 2 years).

Coolpad Will Dump Chinese Mobile Phone Manufacturing Next Year [Nov 30, 2011]

Li Wang, executive vice president of the Chinese mobile phone brand Coolpad, revealed that the company plans to completely stop manufacturing mobile phones and non-smartphone devices in 2012.

Instead, the company will try to focus only on smartphone manufacturing. Li told local media that Coolpad’s mobile device shipments in the entire year of 2011 is expected to reach over 12 million units, of which over 60% are smartphones.

Coolpad’s current business focus in reportedly on the domestic Chinese market and the first- and second-tier cities are its key markets. With its gradual penetration into the third- and fourth-tier cities, Coolpad will adjust its sales and marketing strategy accordingly, said Li. Apart from the domestic market, the company will continue to expand into overseas markets. Following its entry into India and Indonesia, the company has started developing the North American and European markets.

Borqs Unveils Latest OPhone Handsets at 14th China Beijing International High-tech Expo [Borqs article, May 20, 2011]

With the coming of the World Telecommunications Day, the 14th China Beijing International High-tech Expo (the Expo) opened at China International Exhibition Center from May 18th to 22nd, 2011. This Expo was co-organized by several state departments of China, including the Ministry of Science and Technology, Ministry of Commerce, Ministry of Education, and Ministry of Industry and Information Technology. Many innovative enterprises participated into the Expo with their innovation achievements. Borqs, one of the members of China’s National Special Key Projects, were also invited and exhibited the new serial of TD smartphones running on OPhone OS 2.0 or higher.

From “Made in China” to “Created in China”, and then to “China Standards”, enterprises based in Zhongguancun have always been committed to innovation and development since their establishment. As technology advancement and industry transfer are seen everywhere around the world, China Mobile developed and launched the first 3G standard in China, TD-SCDMA, a decade plus ago. As of today, China Mobile has maintained 61.9 million 3G mobile users as well as 26.99 million TD-SCDMA users. Recently, Mr. Jianzhou Wang, the Chairman of China Mobile, pointed out that TD system was no longer a test network but a commercial one covering 656 cities around China with the joint efforts of China Mobile and its industry partners from within and outside the country. Especially, the TD-SCDMA industry chain has emerged in recent years,, consisting of near 50 telecommunication enterprises, including many manufacturers and providers of network, terminals and chips, in and outside China.

OPhone OS is closely related to TD. Up to now, OPhone smartphones account for 50% of TD smartphones. At the Expo, a wide range of TD terminals are exhibited, including many new OPhone-based models. Following its receiving recognition from the state officials at the prior 11th Five-year Plan Major Science & Technology Achievements Exhibition, OPhone OS continued to be all the rage and attracted many visitors at the Expo.

Mr. Huang Xiaoqing: China Mobile Started Research of OPhone 3.0 [Borqs article, Oct 13, 2010]

NetEase Tech, October 12th – Mr. Huang Xiaoqing, President of the Research Institution of China Mobile, told NetEase Tech during an interview at the ICT China High Level Forum 2010 that China Mobile had initiated the research plan for OPhone 2.5 and OPhone 3.0.

As of today, China Mobile has introduced a number of OPhone-based smartphones by partnering with some mobile manufacturers, but without any flagship products at various prices that could deliver outstanding user experience. Mr. Huang Xiaoqing says, “It is a big challenge for both the Research Institution of China Mobile and even the entire telecommunication industry in China. It’s about how the nationwide industry could evolve and catch up with the world’s leading technology in an open-source environment.”

According to Mr. Huang, terminal testing results proved that OPhone 2.0, following OPhone 1.0 and 1.5, had been built with an industry-leading performance enabling a wide range of mobile phone functionalities. China Mobile has now been working on the development of OPhone 2.5 and 3.0. He expressed his ambition that the new versions could “be in the world’s leading position”.

While developing upgraded versions of OPhone OS, China Mobile has incorporated the target to develop low-price terminals into its OPhone roadmap. Mr. Huang explained, “There are quite many OPhone mobile phones on the market, but most of them are too much expensive. It has been one of our goals to cut down the price of OPhone mobile phones to 1,000 Yuan or below, equivalent to that of ordinary mobile terminals, but without sacrificing user experience.”

Leadcore, a China-based chip manufacturer, is reported to have launched the first OPhone-based TD-SCDMA single-chip smartphone solution for OPhone smartphones priced at RMB 1,000 Yuan. Industry experts estimate that China Mobile might be able to launch some OPhone-based smart phones priced at RMB 1,000 Yuan or even below at year-end of 2010 and beginning of 2011 in a joint effort with some partners from its industry chain.

OPhone is a smartphone operating system based on Google Android. At the end of August 2009, China Mobile launched OPhone platform in three versions successively, including OPhone 1.0, 1.5 and 2.0. As of now, more than 20 mobile manufacturers in/outside China has joined the camp of OPhone and launched many popular OPhone-based mobile phones.

China becoming the lead market for mobile Internet in 2012/13

Update: China government not expected to issue TD-LTE operating license for the time being [Jan 16, 2012]

While China Mobile has been actively promoting TD-LTE, the China government is not expected to issue a TD-LTE operating license to China Mobile for the time being, according to industry sources.

China Mobile finished initial TD-LTE trials in seven selected cities in China around the end of 2011 and has proposed a second-round of trials, but the China government has not yet approved the plans, signaling the government’s attitude to slow down promotion of TD-LTE in China, the sources indicated.

This is because 3G mobile communication services are taking off in the China market and therefore the government does not want to issue a TD-LTE operating license out of consideration for China Telecom and China Unicom, the sources said.

China in Smartphone Lead [Nov 24, 2011]

China overtook the U.S. as the world’s largest smartphone market by volume in the third quarter, according to a report by research firm Strategy Analytics.

Deliveries of smart phones to operators and retailers in China grew 58% in the third quarter from the previous quarter to 24 million units. That surpassed 23 million units delivered to the U.S. market, down 7% from the previous quarter …

Nokia Corp. had the largest share of China’s smartphone market in the third quarter, with 29%. … Samsung Electronics Co. Ltd. is chasing hard with 18% of the Chinese market …

Strategy Analytics said that China is now at the forefront of the worldwide mobile computing boom and has become a large and growing smartphone market that no hardware vendor, component maker or content developer can afford to ignore. …

Strategy Analytics estimates that 57% of the world’s handsets were manufactured in China in 2010. … two of Nokia’s eight production facilities are based in China and the company said China is also one of its bigger suppliers of mobile handset components.

HSPA+ and LTE Investment Key to Operator Profitability [Strategy Analytics press release, Nov 29, 2011]

In its latest Wireless Operator Strategies (WOS) report, “Outlook & Forecast: How HSPA+ and LTE Investments will save Mobile Operator Profits,” Strategy Analytics projects the impact of HSPA+ and LTE investments on operator margins through 2016.  Successful operators will be those who accelerate investment in next generation infrastructure in response to the dramatic growth in Broadband data demand. The race is on to reduce cost per Gigabyte (GB) to match the rate at which revenue per GB is falling. Operators who invest early in next generation HSPA+ and LTE infrastructure will see improvements in gross margins after 2014

VAS and mobile internet in China [Nov 24, 2011]

David Song, Co-Founder, Great Wall Club, presentation in S.Petersburg 2011-11-24, VIII VAS Mobile Conference. English. See more VAS Mobile Conference http://www.mforum.ru/news/article/098465.htm.

See as well the slides at http://www.mforum.ru/news/article/099412.htm

China Telcos Announce October 2011 Subscriber Totals [Marbridge Daily, Nov 21, 2011]

China’s three main telecom operators have announced their subscriber totals for October 2011.

October saw the net addition of 12.05 mln new mobile subscribers. China Mobile (NYSE: CHL; 0941.HK) added 5.37 mln new mobile subscribers, pushing the operator’s total mobile user base to 638.89 mln, of which a total of 45.33 mln subscribers used China Mobile’s TD-SCDMA terminals during the month. China Mobile added 2.17 mln new TD-SCDMA subscribers in October.

China Unicom (NYSE: CHU; 0762.HK; 600050.SH) added 3.34 mln new mobile subscribers, bringing its total to 192.38 mln. Of the new mobile subs added, 0.42 mln were GSM subscribers, bringing China Unicom’s total GSM user base to 159.23 mln, and 2.92 mln were WCDMA subscribers, pushing the company’s total WCDMA user base to 33.15 mln subscribers.

China Telecom (NYSE: CHA; 0728.HK) added 3.34 mln CDMA subs, taking its total to 120.29 mln, of which 31.19 mln were CDMA2000 EV-DO subscribers. China Telecom added 2.76 mln new CDMA2000 EV-DO subscribers in October.

Of the combined total of 109.67 mln 3G subs, China Mobile holds 41.3%, China Unicom 30.2%, and China Telecom 28.4%. Of total new mobile subs added in October, China Mobile took 44.57%, dropping its share of China’s total mobile user base to 67.14%. China Unicom’s share of the total mobile user base rose to 20.22%, while China Telecom’s share increased for the 34th straight month, rising from 12.45% at the end of September to 12.64% at the end of October.

China Telecom lost 560,000 fixed-line subs, reducing its total to 170.4 mln, and China Unicom lost 278,000 fixed-line subs, dropping its total to 94.3 mln.

China Telecom added 1.07 mln new broadband subscribers to reach 74.76 mln, and China Unicom added 512,000 new broadband subs to reach 55.05 mln.

Analysys International: Chinese Mobile Internet Users Reached 370 Million in 2011 Q2 [Nov 14, 2011]

According to the EnfoDesk recently released by Analysys International, the number of domestic [mobile] internet users was 369 million in Q2, 2011, with a sequential growth rate being 7.6% and a year-on-year increase of 72.3%.

image

In terms of 3G mobile Internet, however, there is a huge potential for growth. Taking just the global 3G technology leader W-CDMA against the home-grown TD-SCDMA:
– As at 30 June 2011, the total number of subscribers of the China Unicom reached 181.61 million, an increase of 15.7% over the same period last year. Not much considering that the penetration rate of W-CDMA subscribers reached is still 13.2%. (From: China Unicom (Hong Kong) Limited Announces 2011 Interim Results [Aug 24, 2011])
– For China Telecom (CDMA and CDMA 200 EV-DO for 3G) the total number of subscribers reached 120.29 million, of which 31.19 million were 3G subscribers, i.e. 25.9% of the subscriber base. (From the above Marbridge Daily report)
– Meanwhile at 30 June 2011, the total number of subscribers of the China Mobile reached 616.79 million and the penetration rate of TD-SCDMA subscribers reached 5.7% only. (Here and below from: China Mobile Operation Operation Data – Customer Numbers)
– At the end of October 2011 China Mobile had 638.889 million subscribers and the number of 3G subscribers was still just 7.1% of the whole subscriber base.
– Considering the monthly 3G subscriber data from the corresponding operators (till October 2011) we can clearly see that China Mobile’s TD-SCDMA is not only underperforming against China Unicom’s W-CDMA, but that underperformance is getting worse month after month:

China - TD-SCDMA and W-CDMA 3G subscribers -- Oct-2011

The consequence is that the #1 global operator, China Mobile, is fast moving towards a combined 3G/4G strategy now:

China Mobile to add 10,000-20,000 TD-LTE base stations in 2012 [Nov 21, 2011]

China Mobile will set up 10,000-20,000 additional TD-LTE base stations around China in 2012, according to company vice chairman Xi Guohua.

Under the auspices of the China government, China Mobile has been establishing TD-LTE experimental networks in six cities in China and has set up more than 850 base stations in total, Xi indicated. In addition, 50% of China Mobile’ 250,000 TD-SCDMA base stations around China can be gradually upgraded to TD-LTE, Xi said.

China Mobile has been promoting international adoption of TD-LTE through cooperation with mobile telecom carriers in North America, Europe and Asia, with more than 30 TD-LTE experimental networks completed or under establishment as of the end of October 2011, Xi indicated.

Taiwan-based companies are expected to play an important role in China Mobile’s promotion of TD-LTE, Xi said. For example, Taiwan-based IC design house MediaTek has completed development of TD-LTE/3G and FDD-LTE/3G chips for use in smartphones and Quanta Computer has finished development of TD-LTE network interface cards and TD-LTE-enabled tablet PCs.

TDD Camp Sets Out Global Ambitions [Nov 17, 2011]

“Our belief is, LTE is the next GSM,” Bill Huang, general manager of China Mobile Ltd. (NYSE: CHL)’s Research Institute, told a packed seminar organized by Global TD-LTE Initiative(GTI), the industry body set up to promote the technology.

Huang said that by 2013, GTI’s operator members will have 39 percent of the world’s mobile population covered. “But I think it’s not enough. We can cover 50 percent by 2015, or something close to that.”

He also thinks China Mobile should go head-to-head with fixed-line broadband using TDD, “as long as we can get our costs down.”

China Mobile guided the technology through the 3rd Generation Partnership Project (3GPP) standards process and was instrumental in gaining the support of other influential operators such as Japan’s SoftBank Mobile Corp. , India’s Bharti Airtel Ltd. (Mumbai: BHARTIARTL) and Vodafone Group plc (NYSE: VOD).

In addition, China Mobile helped form the GTI, headed by former GSMA chairman Craig Erlich, and persuaded some WiMax operators, such as Malaysia’s Packet One Networks (Malaysia) Sdn Bhd. (P1) and Australia’s vividwireless Pty Ltd. to climb aboard. (See P1 Joins Global LTE TDD Group, Another WiMax Operator Converts to LTE, Going WiMax to LTE Down Under and GSMA Names New Chairman.)

LTE TDD’s big draw is that it can be deployed by those operators holding licenses for unpaired spectrum, which is currently used to provide WiMax services. FDD’s paired channels work well for voice but are wasteful for data, which is mostly asymmetrical in nature. Additionally, the guard bands in FDD mean up to 30 percent of it is not used, compared with about 10 percent for TDD.

Those capabilities, and the availability of unpaired spectrum, has resulted in a growing interest in LTE TDD — something reflected in the rising prices paid in spectrum auctions, according to Donald Lu, Beijing-based executive director of global investment research for Goldman Sachs & Co.“It’s the unpaired spectrum that has made the difference. The value of unpaired has increased by comparison to paired,” he said.

That said, the majority of awarded spectrum is of the FDD variety: Of the 185 LTE network projects underway globally, just 33 are trialing LTE TDD and of those only about 10 have absolutely committed to the technology, according to the Global Mobile Suppliers Association (GSA). And as Ovum’s McCormick notes, while the FDD players might supplement their existing spectrum with TDD licenses, they’re not going to switch from one to the other.

As a result the global LTE TDD market is not set to be enormous for the coming few years, at least while the ecosystem continues to grow. Goldman Sachs estimates that global LTE TDD capex will total US$15-20 billion during the 2012-2014 timeframe, while 40 million devices will likely be shipped.

China Mobile aims to complete next phase 4G trial by June [Reuters, Nov 15, 2011]

China Mobile expects to finish the second-phase of its fourth-generation (4G) network trials by June, a senior company executive said on Tuesday, as the world’s largest mobile carrier tries to boost its data services to attract high-end users.

China Mobile has built more than 850 base stations in six major cities in China and has made “remarkable progress” in its tests of the new-generation network technology based on TD-LTE platform, Li Zhengmao, an executive vice president, said at an event in Hong Kong. [LTE TDD/FDD International Summit 2011 Hong Kong GTI Summit, Nov 15, 2011]

“With the growing popularity of mobile Internet and smart devices, data consumption is increasing at an explosive speed, which has brought huge pressure to global mobile networks.”

“Under such a situation, the need to speed up the commercialisation of LTE is more compelling.”

China Mobile, the country’s biggest mobile carrier with 633.5 million subscribers — more than the entire population of North America — has been losing out to smaller rivals China Unicom and China Telecom in attracting higher-end 3G users.

China Unicom is the only official iPhone seller among the three Chinese carriers. China Mobile has 10 million iPhone users even though it does not have an agreement with Apple, but iPhone subscribers using the carrier do not have access to 3G download speeds.

Apple has been reluctant to strike a deal with China Mobile due to its inferior homegrown 3G technology called TD-SCDMA.

Apple has promised to make an iPhone compatible with China Mobile’s TD-LTE standard when its next-generation model comes out, the Chinese firm’s Chairman Wang Jianzhou told Reuters last month.

Li said seven telecom equipment makers and threechip makers participated in the first phase of the 4G trial. The Beijing-based carrier has begun purchasing TD-LTE devices, he said.

China Mobile and U.S. 4G operator Clearwire Corp have teamed up to develop high-speed mobile devices and infrastructure. Under their agreement China Mobile will work on chipsets and devices for TD-LTE that both companies are planning on using.

China Mobile and Clearwire Announce Collaboration on TD-LTE Devices [Clearwire press release, Sept 24, 2011]

China Mobile, the world’s largest mobile operator in terms of subscribers, and Clearwire Corporation (Nasdaq:CLWR), a leading provider of 4G wireless broadband services in the United States, today announced a collaboration to accelerate the development of TD-LTE devices. Specifically, the two companies agreed to work together to cultivate a robust device ecosystem that supports multi-mode, multi-band devices with minimum component complexity and cost.

China Mobile and Clearwire both support the global 2.5 GHz spectrum band for 4G deployments along with many other operators around the world. To date, both China Mobile and Clearwire have conducted successful TD-LTE trials and tests using commercially available / production-ready TD-LTE devices from numerous vendors. The two companies will work jointly to further accelerate the time-to-market availability of high volume TD-LTE chipsets and devices that should be commercially available starting in 2012. In addition, the two companies will collaborate to enable worldwide data roaming among TD-LTE, FDD-LTE and other 2G/3G networks.

“The availability and cost of TD-LTE devices are critical success factors for operators to deploy TD-LTE networks,” said Mr. Jianzhou Wang, Chairman of China Mobile Communications Corporation. “The cooperation with Clearwire will leverage economies of scale in the two largest markets in the world to speed up the development of TD-LTE devices. We anticipate the widest variety and most cost effective high performance devicesmodems, routers, smart phones and tablets– to provide end users with affordable advanced mobile broadband services.”

“We expect to launch a next-generation LTE network that will offer more capacity than any other 4G network in the United States,” said John Stanton, Executive Chairman of Clearwire. “By working with China Mobile, we fully expect to benefit from a device ecosystem aimed to support billions of potential users worldwide. This unmatched scale should reduce costs and increase choices for our customers in the years ahead.”

Today’s announcement further supports Clearwire’s recent announcement of its intent to add LTE technology to its 4G network. By joining forces on TD-LTE technology, product, deployment and roaming solutions, China Mobile and Clearwire are well positioned to build a viable and competitive TD-LTE ecosystem for the highest demand 4G markets around the globe.

Clearwire gets a boost from China Mobile’s TD-LTE progress [Nov 15, 2011]

In an interview in September with FierceBroadbandWireless, Clearwire CTO John Saw said the primary goal of the partnership is to accelerate the development of a global multi-band, multi-mode chipset that incorporates frequencies between 2.3 GHz and 2.7 GHz. However, because Clearwire’s push into TD-LTE remains on hold while it searches for more funding, China Mobile’s progress is propelling the partnership forward.

The next phase for China Mobile is to have the network running for “large scale commercial” use, and the company plans to launch a network demonstration in Beijing’s main Chang An Street and in the city’s financial district. “4G handsets and data terminals are expected to be ready for mass production next year. We will launch 4G services commercially when both the network and devices are ready,” said Bill Huang, the general manager of China Mobile’s Research Institute, according to Dow Jones Newswires.

Clearwire, meanwhile, has said it needs $600 million to deploy TD-LTE over its mobile WiMAX footprint. Sprint Nextel (NYSE:S), Clearwire’s majority owner and largest wholesale customer, said it may use a portion of the $4 billion in debt it recently raised to fund Clearwire. Sprint also said last month that it signed a non-binding deal with Clearwire to jointly work on LTE network development. The agreement covers cell site selection, site builds, chipsets for devices and is intended to assure seamless handoffs between Sprint’s forthcoming LTE network and Clearwire’s LTE network.

Clearwire CEO Prusch: We Got Our ‘Big Three’ In Sprint Deal [Forbes, Dec 1, 2011]

In an interview with Forbes this afternoon, Prusch was practically gushing about the company’s new multi-part agreement with Sprint, a development that spurred a 14% jump in the company’s stock price today. Just a few days ago, there were worries that the company might decide not to make a $273 million interest payment on its debt that was due today. Today, the company not only made the payment on schedule, it also apparently reached a detente in its fractious relationship with majority owner Sprint.

“This is a significant event, a foundational event,” Prusch said. “This is the springboard for a lot of different things to occur.”

Prusch said the deal achieved three key objectives: it extends the company’s deal to provide WiMax service to Sprint; they got a commitment to support its planned rollout of LTE service over the current WiMax footprint; and they got a commitment for additional equity funding. “We’re excited about it, clearly,” he said, apparently with no pun intended. “It gives us an avenue to get our LTE build completed as we had suggested we wanted to do by the end of 2012 or the beginning of 2013.” It was, he adds, “a very important step” to have the company’s top shareholder getting behind the company’s expansion plan.

Sprint and Clearwire Announce New Agreements [joint press release, Dec 1, 2011]

– Offers Clearwire Up to $1.6 Billion in Conditional Aggregate Revenues and Funding
– Clearwire to Receive Total of $926 Million From Sprint for Unlimited 4G  WiMAX Services in 2012 and 2013; WiMAX Network to Operate Through at Least 2015

– Sprint to Provide Support for Future LTE Services

– Companies Agree on Parameters for Additional Sprint Equity Investment

– Clearwire to Pay $237 Million Total Interest for First-Priority, Second-Priority and Exchangeable Notes as Scheduled

OVERLAND PARK, Kan. and BELLEVUE, Wash. Dec. 1, 2011 Sprint Nextel (NYSE:S) and Clearwire(NASDAQ: CLWR)today announced agreements potentially worth up to $1.6 billion over the next four years in payments for WiMAX services, possible pre-payments for LTE services and potential equity investments. The agreements further align Clearwire’s LTE network build as a complement to Sprint’s Network Vision strategy.

Also today, Clearwire announced that it has made interest payments totaling $237 million on its first-priority, second-priority and exchangeable notes which were due Dec. 1, 2011.

“These agreements are a result of the technical MOU we outlined during our third quarter results call and extend our relationship with Clearwire,” said Dan Hesse, Sprint CEO. “It provides Sprint improved pricing, allows us to continue to provide WiMAX 4G services to our customers today and to new customers in the future and provides additional LTE capacity to help complement our Network Vision strategy and meet our customers’ growing data demands.”

“Today’s announcement further cements the mutually beneficial relationship between our two companies,” said Erik Prusch, president and CEO of Clearwire. “It is an important step toward meeting Clearwire’s key goals of extending our current 4G network arrangement, securing a commitment to our future LTE Advanced-ready network, and funding the business. We continue to move closer to realizing the full value of our deep spectrum resources as we are uniquely positioned to meet the rapidly growing demand for 4G mobile broadband.”

Wholesale Pricing and 4G Availability

The agreements modify prior wholesale pricing agreements and provide Sprint with unlimited access to Clearwire’s WiMAX network to meet its growing 4G data demands. Under the terms of the agreements, Sprint will pay Clearwire a total of $926 million, approximately two-thirds of which will be paid in 2012, for unlimited 4G WiMAX retail services during 2012 and 2013, subject to certain conditions. The agreements also establish long-term usage-based pricing for WiMAX services in 2014 and beyond. Sprint will have access to Clearwire’s WiMAX network through at least 2015. Sprint plans to continue selling WiMAX devices with two-year contracts through at least 2012 and support those devices through the life of the contract.

In addition, the agreement contains separate, competitive pricing for re-wholesaling by Sprint that provides flexibility for Sprint to grow its 4G WiMAX wholesale business while at the same time providing Clearwire increased pricing flexibility that should allow Clearwire to grow its wholesale markets and attract new customers.

TDD-LTE Collaboration

The agreements also lay the foundation for the deployment of Clearwire’s planned LTE Advanced-ready overlay network and outline the terms for Sprint to gain access to the additional LTE capacity. The TDD-LTE rollout will capitalize on Clearwire’s deep spectrum resources to deliver on 4G capacity needs over the long-term. Under the terms, Sprint will pay Clearwire up to $350 million in a series of prepayments over a period of up to two years for LTE capacity if Clearwire achieves certain build-out targets and network specifications by June 2013. The agreements also establish long-term usage-based pricing for LTE services for 2012 and beyond. The companies have agreed to collaborate on a network build plan and will jointly select LTE macro-cell sites to cover Sprint’s high usage area “hotspots.”  Clearwire plans to seek additional funding before initiating the build-out of its LTE Advanced-ready network.

In addition, Clearwire and Sprint will work collaboratively to support the ecosystem for TDD-LTE in Band Class 41 for devices, chipsets and standards. Subject to the timing of the build-out and other factors, Sprint expects to launch devices including laptop cards and phones that will utilize Clearwire’s TDD-LTE network in 2013.

Equity Investment

Sprint has committed to providing additional equity funding to Clearwire in the event of an equity offering. If Clearwire raises new equity between $400 and $700 million, Sprint will participate in the offering on a pro rata basis up to $347 million, consistent with Sprint’s current voting interest of 49.6 percent on the same terms and conditions as other participating companies.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 53 million customers at the end of 3Q 2011 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 3 in its 2011 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at http://www.sprint.com or http://www.facebook.com/sprint and www.twitter.com/sprint.

About Clearwire

Clearwire Corporation (NASDAQ:CLWR), through its operating subsidiaries, is a leading provider of mobile broadband services. Clearwire’s 4G network currently provides coverage in areas of the U.S. where more than 130 million people live. Clearwire’s open all-IP network, combined with significant spectrum holdings, provides an unprecedented combination of speed and mobility to deliver next generation broadband access. The company markets its 4G service through its own brand called CLEAR® as well as through its wholesale relationships with companies such as Sprint, Comcast, Time Warner Cable, Locus Telecommunications, Cbeyond, Mitel, Best Buy and United Online. Strategic investors include Intel Capital, Comcast, Sprint, Google, Time Warner Cable, and Bright House Networks. Clearwire is headquartered in Bellevue, Wash. Additional information is available at http://www.clearwire.com.

GSMA: Dual-Mode a Must for LTE Devices [Nov 16, 2011]

For Long Term Evolution (LTE) to succeed, it’s “absolutely critical” that devices be able to support both the TDD and FDD versions of the next-generation mobile technology, according to GSM Association (GSMA) Director General Anne Bouverot.

Bouverot told a conference held by the Global TD-LTE Initiative (GTI), an industry group promoting Long Term Evolution Time Division Duplex (LTE TDD), that it was not enough just to get the products to market.

The chipsets are the key. Only four chip vendors — mostly startups — designed and built TD-SCDMA chips, points out Bill Huang, general manager of China Mobile Ltd.’s Research Institute.

Now, though, around 16 chip specialists, including Qualcomm Inc. (Nasdaq: QCOM), ST-Ericsson and Sequans Communications , are doing “various kind of baseband” for LTE TDD, Huang stated.

To date around 35 LTE TDD terminals (mostly data cards or MyFi-style hotspots) have been developed, while ZTE Corp. has already produced a dual-mode card.

But Huang said the problem is not whether the two 3GPP standards will be combined into one chipset, but whether the chips can support all the required spectrum bands. “The question is: What spectrum from TDD or what spectrum from FDD that [the chip] will support?” stated the China Mobile man. “We now have six spectrum bands identified that will cover maybe 80 percent of the world — we may increase that to eight bands to get 100 percent coverage.”

Internet giants have taken over from pure mobile internet players [Nov 11, 2011]

According to data provided by China Mobile, the internet giants, that’s to say Tencent, Baidu and Sina, have become the leading players in the mobile internet market, boosting traffic levels and overtaking the pioneering pure mobile internet players in their respective sectors (See Exhibit 1 below).

Exhibit 1: Traffic of the Top Fifteen Mobile Internet Players (Unit: TB)

Note: 1) By China Mobile we mean related sites such as the Monternet homepage, reading and Mobile Market sites. 2) The highlighted companies are internet players who aim the bulk of their services at the traditional PC-based internet.
Source: China Mobile. Figures are based on traffic data for Fujian, Guangdong, Henan, Jiangsu and Shanghai in August 2011 and August 2010.

In the portal sector, both Tencent and Sina have supplanted 3g.cn, the previous market leader specifying on WAP portal. Sina, it should be noted, lagged a long way behind 3g.cn a year ago in terms of traffic (15.1 TB vs. 28.5TB). In the search market, Baidu and Soso more than doubled their traffic within a year and are now much larger than Easou, once the market leader. Easou’s traffic shrank to less than 50% of its previous level. Ecommerce is also extending from internet to mobile internet space. Taobao, the dominant B2C and C2C site, China’s third largest internet site in terms of traffic, secured itself 14th place in the mobile internet industry in August 2011, proof of a dramatic take-off in traffic. Furthermore, transaction volume has also rocketed. Unveiled in 2009, Taobao’s mobile site expects to have a turnover above RMB 10 billion in 2011, up from RMB 1.8 billion and RMB 0.25 billion in 2010 and 2009 respectively.

There are three main reasons for the significant changes in the past year:

  • Internet applications and content perform much better on the large-screen smartphones and tablets that have come into widespread use in the past two years. The launch of the iPhone proved to be a critical turning point. Users now find little difference between accessing websites through a PC and through portal devices.
  • Internet giants are eagerly promoting services/applications for mobile users. For example, Tencent has launched various SMS+IM packages leveraging its 700 Million strong QQ user base, and Sina has invested heavily in its SMS+weibo (twitter type) service.
  • Pure mobile internet players lack differentiation and diversification. Pioneer mobile service providers, for example 3g.cn and Easou, rely totally on mobile ads on WAP sites or search portals. They lack product lines such as SNS, IM, or games which feature high user stickiness.

Among above mobile internet companies, there are a few exceptional cases which are still well positioned and report strong uptake:

  • UCWeb has maintained No.2 position thanks to its popular mobile browser. Despite the rapid growth of various App Stores, the mobile browser is still the main access point for mobile internet content. Tencent has in turn unveiled its QQ browser, aiming to gain some share of the market.
  • The mobile SNS site Lexun has remained the leader in this sector, unaffected by rapidly growing internet SNS services, such as Renren and Kaixin. However, overall traffic growth on mobile SNS sites remains flat, in contrast to the significant take-off of the mobile internet as a whole.

Looking forward, mobile internet market will see fiercer competition and more players expanding to mobile internet sector with their popular internet applications.

China’s app growth is up by 840% in 2011 [Nov 4, 2011]

China’s mobile applicationmarket is now the second largest in the world, according to research.

Analyticsfirm, Flurry, found that China has had an 840% increase in app usage during this year. The growth is four times more than the rate experienced by other countries.

The country now ranks behind the United Statesin the stakes to become number 1 in the apps market.

Countries within Asiawere also featured in the top 10 of biggest growers, with India at 398% and Thailand at 351%.

China’s growth could be due to the country’s increasing affluence for middle class people, meaning more people are starting to own smartphones.

Peter Farago from Flurry said: “While the top 100 countries are averaging session growth of over 200%, China is delivering more than four times this growth rate, spurred by a massive population voraciously adopting applications.”

Flurry also found that the United States have suffered a decrease in activity, meaning China could overtake the country in the bid to be the top country for app usage by 2013.

The findings are based on the number of customers that downloaded apps from their country’s store, along with how long customers spend on the apps stores.

Farago continued: “As one of the fastest modernizing and largest countries in the world, the adoption of mobile apps in China is unprecedented. Whether studying China by existing app session generated or new demand for apps, the growth rates are similar.”

To learn more about the future of multiplatform apps and how marketers, developers, businesses, brands and operators are benefiting from the market’s rapid growth, visit www.apps-world.net/europe on 29-30 November in London and hear from leading global brands and industry experts.

Smartphones making rapid headway in cities [China Daily, Nov 11, 2011]

About 35 percent of urban Chinese use smartphones, the third-highest level in the world, a survey has found.

China’s smartphone adoption rate follows Singapore’s 62 percent and Australia’s 37 percent, according to the survey by Google Inc and research company Ipsos, which was based on 30,000 interviewees from 30 countries and regions.

“If you consider that the device didn’t exist more than five years ago, the fact that already one-third of the population in the cities has it is actually quite remarkable,” said Ryan Hayward, Asia-Pacific mobile product marketing manager of Google.

“When we look back at how long it took for people to adopt radio and TV, I doubt that one in three had them within four years. That just didn’t happen.”

The survey covered 2,000 people in seven large cities: Shenyang, Beijing, Shanghai, Xi’an, Chengdu, Wuhan and Guangzhou.

“People living in first- and second-tier cities change their mobile phones relatively often,” said Wang Ying, an analyst with domestic research company Analysys International.

“Economic development in the cities has spurred residents’ demand for smartphones, which in turn, led to mobile carriers’ initiatives to promote smartphones,” she added.

Urban Chinese consumers are also most likely to own multiple mobile phones, whether smartphones or regular feature phones. One out of three people in urban China have at least two smartphones, a proportion that is the highest in the Asia-Pacific region, according to the report.

The wide adoption of smartphones has been partly boosted by China’s construction of a third-generation (3G) networks, which which have improved the user experience for smartphone owners with higher speed.

China had more than 100 million 3G users at the end of September, representing more than 10 percent of total mobile phone subscribers, according to the Ministry of Industry and Information Technology.

The smartphone adoption level is probably less than 20 percent nationwide, however, taking less-developed cities and rural areas into account, said Wang. The market needs to be further tapped as these areas gradually adopt 3G networks and people there change mobile phones.

In areas that require advanced technology, such as cloud computing, the US will continue to be a leader for a long time. But in other areas, such as social applications, games and mobile Internet services, there will be promising companies emerging in China in the coming years, Kai-Fu Lee, former head of Google China, said last month at an industry forum in Beijing.

China spurs growth of mobile Internet [China Daily, Nov 1, 2011]

A senior expert said Monday that China will take greater strides in promoting the development of its mobile Internet sector.

image

Wang Xiujun, chief engineer of the Ministry of Industry and Information Technology (MIIT), said that the government will step up policy support for mobile Internet because it “promotes industrial integration and leads to revolutionary changes in development and technology.”

Wang said the country will speed up comprehensive upgrades for its information networks and boost the development of third-generation technology (3G), especially homegrown TD variants of 3G and LTE (long-term evolution) technology.

Along with the development of information networks, the innovation and development of integrated technologies and businesses should also be highlighted, Wang said during the ongoing fifth International Mobile Internet Conference, which opened Monday in Beijing.

Wang said that the Chinese government will attach more importance to the protection of users’ personal information and their rightful interests and maintain a healthy environment for the development of the mobile Internet sector.

The two-day meeting is sponsored by China Mobile, the world’s largest telecommunications firm by number of users.

“The development speed of mobile Internet is far quicker than what we imagined. Mobile Internet is becoming a reality, and is deeply changing our habits and behaviors,” a statement on the firm’s website said.

The statement said mobile Internet has also had a great impact on the traditional operation and business modules of the mobile telecommunications industry.

MIIT data showed that the number of Chinese mobile phone users hit 952.31 million by the end of September, 102.46 million of whom are 3G users.

According to the China Internet Networks Information Center (CNNIC), the number of netizens in China reached 485 million by the end of June this year. As of the end of 2010, the number of people who accessed the Internet through mobile phones had already reached 303 million.

Mobile Internet users are even expected to outnumber those who access the Internet through computers next year, according to Enfodesk, a think tank engaged in researching of new media economics in China.

Li Zhengmao, China Mobile’s vice president, said the production of smart mobile phones has jumped 50 percent year-on-year globally. Li added that the continuous development and deepened applications of 3G and LTE technologies means that mobile Internet has entered a new phase for rapid growth.

With more than 630 million subscribers, China Mobilehas been pushing for the country’s homegrown 4G standard, known as TD-LTE, or “Time Division-Long Term Evolution,” to become a globally accepted standard.

Huang Xiaoqing, who heads China Mobile’s telecommunications research institute, said the TD-LTE technology will substantially lower bandwidth costs. He said the technology will provide faster broadband wireless services to meet future demand that the current 3G network would be unable to deliver.

China Mobile also announced Friday the incorporation of a new company to accelerate its development of 3G and smartphone technology.

The subsidiary, China Mobile Terminal Co Ltd, will handle customization, testing, procurement, sales and service for the group’s third-generation (3G) devices. The new firm will also speed up the research and development of TD-LTE.

Market Scale of China Mobile Internet Grows to 10.83 Billion Yuan in Q3 2011, Showing Huge Development Potential [Nov 15, 2011]

According to the data of iResearch, market scale of mobile Internet reaches to 10.83 billion in Q3 2011, up 154.6% year-on-year and 38.9% quarter-on-quarter. Meanwhile, growth rate of mobile Internet increases nearly 18% compared with last quarter.

iResearch views competition among mobile devices and mobile operation systems is more fierce, which will accelerate popularity of smart phones and lead growth rate of mobile Internet to a new peak. Besides, traditional Internet enterprises all invest more in mobile Internet, and new applications and commercial modes also attract more companies to participant in the mobile Internet market, which helps growth of the market segments.

Changing track of mobile Internet segments in Q3 is similar to Q2 2011. Share of mobile value-added service market in the mobile Internet will further fall to 43.7% while share of mobile ecommerce obviously become bigger, up to 34.8% from 27.9% in the second quarter. Moreover, with higher awareness of advertisers, development of mobile advertisement network enterprises and increasing number of mobile device users, market scale of mobile advertisement rises to 10.3% from 9.5% in the second quarter. In the other segments, mobile value-added service, mobile games and mobile search develop steadily and their share falls slightly. Mobile Internet market segments will face balanced development.

Mobile value-added service increases 17.7% quarter-on-quarter, which is attributed to the following reasons: Firstly, mobile operators enhance the development of value-added service and pay more attention to product integration. Secondly, a variety of new applications such as mobile reading, mobile instant messaging and location based service develop rapidly and bring more revenue. Therefore, iResearch considers new applications in the mobile Internet develop well and have more users while most commercial modes aren’t mature. As a result, new applications don’t do much contribution to mobile Internet.

Mobile ecommerce maintains strong growth, up 508.1% compared with Q3 2010. It has become a main driving power for the growth of mobile Internet owing to the following reasons: Firstly, traditional ecommerce websites have operated mobile terminals and increased marketing efforts in order to attract a large quantity of users to generate buy deeds. Secondly, some large B2C websites support cash on delivery (COD) instead of mobile payment, which solve the payment problem of many users. Finally, applications of mobile ecommerce more efficiently improve users’ experience and maintain the relationship with clients. Therefore, iResearch holds China mobile ecommerce has showed a trend of accelerated development in Q3 2011 and its share will continue to increase in the future.

As the mobile phones jump into the third generation from the second generation, mobile advertisement as a new marketing method is developing in the content and form. Up to now, advertisers have more mature awareness of mobile advertisement and companies, which provide free applications depending on advertisement platform, achieve profitability. Traditional Internet enterprises expand their business to mobile Internet, producing new demand of marketing and motivate development of mobile advertisement.

Based on the state of mobile Internet market in the third quarter, iResearch views mobile Internet market will continue to rapidly increase in the fourth quarter 2011. In mobile Internet segments, share of mobile ecommerce will expand and Q4 market scale of mobile ecommerce will keep growth rate of 90% or more because mobile ecommerce is attached much attention by traditional ecommerce enterprises and users have gradually cultivated the habit of mobile online shopping; Mobile advertisement will rapidly grow in the process of exploration because it has solved the problem in the profit model of mobile medial even though it remains in the initial stage; Traditional mobile value-added service will develop steadily; Mobile reading and mobile video remain in the search of profit model and may give initial result in the fourth quarter; Mobile games will have a slower growth compared with other mobile Internet segments.

About iResearch
iResearch is China’s leading internet research company, dedicated to providing high quality products and services to deepen our clients’ understanding of China’s internet industry.
For more information, please visit www.iresearchchina.com.
iResearch Client Solutions www.iresearchchina.com/solution.shtml.
More Views & Reports www.iresearchchina.com/report.aspx.

CNC report from Beijing [Sept 15, 2011]

CNC (China Xinhua News Network Corporation) is a TV news network run by Xinhua News Agency, aiming to serve the audiences across the world.

By the end of 2010, cell phone internet subscribers reached 303 million in China – accounting for 66 percent of total internet users in the country.

Weibo is China’ s version of Twitter.

It’ s the most popular online social media site in the country. And, one of the major reasons many people in China began logging on more frequently.

As of June, the number of Chinese people using Weibo and other blog sites reached 195 million – an increase of 209 percent in just one year!

And, just like Twitter, many users have become addicted.

TITLE: THE FUTURE OF MOBILE WEB IN CHINA

Some of the most influential leaders of the mobile internet industry in China recently gathered in Beijing for the China Mobile Internet Industry Investment Forum.

Mobile internet is quite new in China.

In fact, it wasn’t introduced until 2009.

As a result, some people in the country are weary of the new technology.

Education is key, but something many people won’t receive until they can afford to try out the technology.

And, the cost of mobile internet in China, is preventing many people from making the purchase.

SOUNDBITE(CHINESE): HOU WEIWEI, OFFICE STAFF
“It costs me about 3 US dollars per month for a 250 Mbyte package. I have to pay extra bills if I surf the net too much, so I would have to go to places that offer free Wi-Fi.”

The cost of the service isn’t the only complaint from customers.

Many people don’t like the high cost of apps that are needed to take full advantage of mobile technology.

Price. Education. And, other hiccups in the expansion of the mobile internet industry are constant topics of discussion at events like the  China Mobile Internet Industry Investment Forum.

The number of mobile internet users in China is expected to reach an estimated 800 million people within 5 years!

Picture: Mobile Internet is innovation and entrepreneurship and investment boom [Aug 29, 2011]

China Internet Network Information Center released the <<28th China Internet Development Statistics Report>>, as of June this year, China’s mobile phone users reached 318 million, accounting for 65.6% of the total number of Internet users. Most of the increase in business class application remains such as the online shopping rate increased to 35.6%, 12.15 million new users six months, the user growth rate of 7.6% in six months.

CCID Consulting: China’s Mobile Internet Industry Sees Equal Strengths in South and North with Rise in West [Aug 25, 2011]

BEIJING–(BUSINESS WIRE)–Mobile Internet, an integral part of the new-generation information technology, has been recognized as one of China’s strategic emerging industries and given priority by China’s Ministry of Information and Technology in its 12th Five-Year Plan scheme. As such, CCID Consulting has drawn a map of China’s mobile Internet industry in the coming years based on analyses on its current characteristics and growth trends.

“One Belt (the Circum-Bohai Sea, the Yangtze River Delta and the Pearl River Delta in a line) Plus One Triangle (the West Triangle)”

Equal Strengths in South and North with Rise in West; Guangdong Province Taking the Lead

In 2010, China’s mobile Internet industrial recorded an output value of RMB 293.69 billion, to which the four major regions, namely the Pearl River Delta in the south, the Circum-Bohai Sea in the north, the Yangtze River Delta in the east and the West Triangle centered on Chengdu, Chongqing and Xi’an, contributed over 90 percent.

Figure 1 China’s Mobile Internet Industry Size

http://event.ccidconsulting.com/en/images/en-0824-1.jpg
Source: CCID Consulting Mobile Internet Industry Database, May 2011

In China, Guangdong Province is the champion in the mobile Internet industry with an annual output value of more than RMB 100 billion leveraging its strength in terminal manufacturing; the Circum-Bohai Sea is China’s second largest mobile Internet base with significant strengths in mobile terminal manufacturing, mobile Internet software and services; the Yangtze River Delta is also of great importance to China’s mobile Internet industry, which is strong in mobile Internet-related software and services, but relatively weak in terminal manufacturing; the West Triangle is enjoying the greatest growth potential in China’s mobile Internet industry.

“One Belt Plus One Triangle”

The layout of China’s mobile Internet industry is described as “One Belt (the Circum-Bohai Sea, the Yangtze River Delta and the Pearl River Delta in a line) Plus One Triangle (the West Triangle)”. The major cities on “One Belt Plus One Triangle”, including Beijing, Guangzhou, Shenzhen and Hangzhou in the east and Chongqing, Chengdu and Xi’an in the west, are all well equipped in industrial development conditions to support the mobile Internet industry

Figure 2 Key Cities of China’s Mobile Internet Industry

http://event.ccidconsulting.com/en/images/en-0824-2.jpg
Source: CCID Consulting Mobile Internet Industry Database, May 2011

Overall Development with Highlighted Clusters and Evolution in Echelons in Future

In the coming decade, China’s mobile Internet industry will usher in an age of overall development as its industrialization advances to facilitate the transformation of the telecommunications and Internet industries, while the existing industrial clusters will remain the focuses of the industry.

Meanwhile, the evolution of the mobile Internet industry will feature multiple echelons at different growth levels. The first echelon will include the Circum-Bohai Sea, the Yangtze River Delta and the West Triangle, with Beijing, Shanghai, Hangzhou, Shenzhen, Guangzhou, Chengdu, and Chongqing staying in a leading position in the fields of mobile terminal design & manufacturing, mobile software and application R&D. Wuhan, Zhengzhou, Changsha, Xiamen and other second-tier major cities located in the second echelon of Wuhan-Changsha Cluster and the Western Taiwan Straits Economic Zone will specialize in mobile terminal manufacturing and mobile software and application development. Other provinces and regions including Yunnan, Guangxi, Shanxi, Inner Mongolia, Gansu and Ningxia will start with infrastructures construction and promote mobile Internet applications with the local governments and operators playing a major role.

Mobile Terminal Manufacturing Sector to Shift to Lower-cost North and West

As the comprehensive cost in coastal cities stay high, the cost-sensitive mobile terminal manufacturing sector has accelerated its shift to Central and Western regions with lower labor and operation costs. For example, the leading OEM Foxconn has shifted part of its capacities to Henan, Shandong, Sichuan and Chongqing. In addition, the related upstream and downstream sectors including chip manufacturing and mold manufacturing will follow the same trend.

Mobile Software and Application Sector to Continue Relying on Industry-Academy-Research-Application Chain

The mobile software and application sector, both intelligence-intensive and capital-intensive, requires educated and highly skilled talents, innovative technologies as well as high market-penetration of software and applications. Hence, of the sector will continue to focus on major cities in the first echelon where the industry, academy, research, and application forces are tightly integrated.

About CCID Consulting Co., Ltd.

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China. With its powerful industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services. The company’s customers range from industrial users in electronics, telecommunications, energy, finance and automobile to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming China’s No.1 advisor for enterprise management, No.1 consultancy for government decision and No.1 brand for informatization consulting.

New China-made smartphone unveiled [Xinhua, Aug 30, 2011]

A new smartphone made by a Chinese high-profile Internet startup has the potential to shake the world’s largest mobile phone market driving prices down for high-performance handsets.

The low-cost but high-specification phone was unveiled by Lei Jun, founder of Xiaomi Technology Co. that produced it, at a presentation in Beijing on Aug. 16.

Xiaomi Phone, which runs a MIUI ROM on top of Android, is 125mm x 63mm x 11.9mm in size and weighs 149 grams — so it’s both a little heavier and bigger than the iPhone 4.

Lei said that his phone stands out with its fast dual core processor, big screen, high-quality signal, and large battery capacity.

But most impressively perhaps is its 1,999-yuan (313 U.S. dollars) price tag, 3,000 yuan cheaper than the iPhone 4.

“The success of Apple encourages others to follow suit. It has become a trend to promote platforms with terminals and promote App stores with platforms. The question is whether somebody else can be the winner after Apple,” said Sun Taoran, the founder of e-payment service company Lakala.

Lei, also board chairman of Chinese software company Kingsoft, has dismissed comparisons by Internet users between him and Apple’s just-retired CEO Steve Jobs, saying on his microblog that he didn’t imitate Jobs in clothing and “Jobs’ charm is matchless.”

But he did compare his phone with the iPhone several times during the product’s launch.

A total of 16.81 million smartphones were sold in the Chinese market in the second quarter of the year, up 7.5 percent from the previous three months, according to the IT consulting firm Analysys International.

Analysys has said that the number of smartphones sold in China could reach 95 million for this year.

Phones produced by Taiwan-based company HTC, Lenovo’s LePhone and the iPhone are among the best sellers in China.

Lenovo claimed recently in a report that it sold 34 percent more cellphones in the first quarter year-on-year. Its 2,900-yuan LePhone has been selling well, and, according to recent reports, through its sales the company holds a 10 percent share of the middle and high-end domestic smartphone market.

Also, Lenovo this month unveiled its second smartphone, the A60, which has a 88.9-mm touch screen and uses the Android 2.3 operating system, priced at 959 yuan.

But the real change in China’s smartphone market is that domestic Internet firms are starting to compete in it.

Last month Alibaba.com, a major Business-to-Business electronic commerce company, released its smart phone which runs “ALI cloud” OS.
Also, China’s online search giant Baidu is planning to launch its own mobile phone OS Qiushi.

And the country’s leading web-portal Tencent is also working on its own brand Qphone mobile phone and operating system, according to Beijing-based International Herald Leader newspaper.

“The companies including Alibaba, Tencent and Baidu have successfully produced PCs. However, as people are spending more and more time on mobile terminals, their influence could decline,” said Li Yi, secretary general of the China Mobile Internet Industry Alliance.

Competition in the smartphone market may get fiercer as international competitors look to grab a bigger slice both in China and worldwide.
Google Inc. has agreed to buy Motorola Mobility Holdings Inc. for about 12.5 billion U.S. dollars, the largest purchase for the Internet search giant that will allow it to compete more directly with other mobile phone makers.

By the end of the first quarter this year, Nokia, Apple and RIM, the leading three smart phone producers enjoyed more than a half stake in the global market. And it is estimated that more than 100 million smartphones were sold worldwide in the first quarter this year.

But, so far, Chinese companies have only captured a small piece of the global market.

Zhu Junmin, a Beijing-based telecom expert, said domestic companies’ smartphones are still lagging behind in terms of designing. “Foreign brands do better in industrial and user-oriented designing. Lack of innovation makes domestic companies to have to follow and imitate.”

Ma Zihui, chief economist of Samsung Economic Research Center also expressed his worries about the lack of novelty of domestic companies. “Without creativity, a company can hardly compete with foreign counterparts and make ideal profits.”

Survival of the smartest [Global Times, Aug 1, 2011]

For many months now, Beijing’s swankier cafes have been filled with people perusing the Internet not on a laptop computer but on their smartphones.

However, while the mobile Internet has taken off in China, it has remained dominated by foreign platforms, such as Apple’s iPhone OS, Google’s Android and RIM’s Blackberry – until now.

That could be set to change as Chinese companies prepare to launch their own operating systems (OS), with two Chinese companies launching smartphone OS products this month alone.

Xiaomi Tech, a high-tech company set up in April last year, launched MIUI, a system based on Android, on July 8 and plans to launch its own MIUI mobile phone – the M1 – in September. It is a new system with more than 100 personalized services, including free voice call options.

Xiaomi’s founder and CEO Lei Jun, who is also chairman of Chinese software developer Kingsoft and an angel investor in the mobile Internet sector, announced on July 12 that the company had attracted $41 million investment from Morningside Group, Qiming Venture Partners and IDG Capital. The company is valued at about $250 million.

Alibaba Group, China’s e-commerce giant, launched its Ali Cloud Mobile OS Thursday. The Ali Cloud Mobile OS uses cloud computing technology and not only uses Alibaba Group’s own text input software, search engine and e-mail, but also embeds its business services, such as group-buying business Juhuasuan, online retailing marketplace Taobao.com, mobile instant messaging service Ali Wangwang and online buyer community Taobao Girl.

The OS provides users with 8GB storage volume on the phone and over 100 GB storage space on the company’s cloud server side. Users don’t need to download software or applications, they just register to enjoy various applications developed by the company and other developers based on Android OS, with software and applications stored and run on the cloud server side.

Though China’s biggest Internet company Tencent has so far denied that it is developing its own smartphone OS, industry experts believe it is working on one.

“Tencent did a lot of market research on users’ expectations for its QPhone since 2009. Tencent hopes the QPhone brand can cover both the high-end market to compete with iPhone and Google’s Android phones and low-end market to compete with Nokia in China,” a Tencent marketing official said, requesting anonymity.

Tencent partnered with Intel in April 2010 to cooperate on Intel’s smartphone OS MeeGo. Tencent will carry out its own research and development based on the MeeGo OS to make it more suitable for the Chinese market and Tencent’s products and services, which in other words means MeeGo will be used in Tencent’s QPhone.

China’s biggest search engine Baidu also has plans for a smartphone OS. Rumors have swirled since last July that Baidu will launch its Android-based smartphone OS in November this year.

China Mobile started earlier than the country’s Internet giants. It put its OMS (Open Mobile System) into commercial use in 2009. Currently many handset manufacturers produce customized terminals using the system for China Mobile, including Motorola, HTC, Lenovo Mobile and Dell.

Crucial moment

But why are so many big companies rushing to enter what is already a fiercely competitive sector?

“Smartphone OS is the way forward in the mobile Internet industry. Just like the importance of the PC-based Windows OS for the Internet industry, how the smartphone OS field develops is very important for the future market structure and competition pattern,” Chen Yanshu, analyst of IT market research company eShip Consulting said.

Once a company has the advantage in the competition between the different smartphone OS, it can attract more users and application developers and develop new business models based on these resources.

“Selling applications to users through mobile phone application stores is a popular business model now. If a company’s smartphone OS gains more support from users and developers, it will attract more and more other users and developers, which means it has more potential buyers,” said Chen.

“Handset manufacturers, telecom operators and application developers will all cooperate together. But in the ever-changing mobile Internet sector, more and more business models will appear. No one wants to miss this chance. So they have all started to develop a smartphone OS to try to occupy the entrance.”
Multilevel competition

However, achieving market-leader position is far from easy.

“Currently, the competition in China’s smartphone OS area is happening in two dimensions, between industries and between domestic companies and international giants,” Chen said.

Domestic IT and Internet giants are very active in developing smart phone OS because they own a lot of content and applications.

Alibaba Group has established a sound ecosystem in its e-commerce business, which has 370 million registered C2C buyers and sellers, an excellent online payment system, widely used instant messaging services and many others. But the company is looking to shift all this onto the mobile Internet via a smartphone OS.

Tencent has 647 million users of its instant messaging service QQ. Its online community, microblogging, online shopping mall and online games can also be migrated to mobile Internet. The same is true for Baidu’s search engine, map service, location based services, video broadcasting service and so on.
But the difficulties for IT and Internet companies are huge.

“The mobile Internet is very different from the standard Internet. On the standard Internet, things are more open and a company can get users only if it provides excellent products and services. But in the mobile Internet industry, there are many more participants, such as telecom operators, mobile phone chipset manufacturers, mobile phone designers and manufacturers and application software developers,” said Chen.

“The competition is not simply in better products and services to users, but also related to partners, negotiation ability, the business ecosystem construction and many others. This is a new problem for IT and Internet giants. Just copying what they did in the past won’t get them success.”

China’s domestic mobile phone manufacturers are not as strong as international giants such as Nokia and Google and have lagged behind in developing a smartphone OS, according to Chen.

“They cooperate with telecom operators. Lack of power is one reason. Another reason is that traditionally the telecom operators are at the top of mobile Internet industry. The mobile Internet is accessed over their networks. They have big influence on the industry. But what they don’t have is what the IT and Internet giants do have – content and applications,” Chen said.

Lightning fast (ICT-backed) and dominating finances clashing with the age-old slowness of democratic consensus building

Source: FINVIZ.com/forex_charts.ashx
Note: The announcement of Greek referendum came late Oct 31. The above chart is showing how fast the global financial system is reacting to such high-impact news.

Showdown time! Eurozone leaders confront Greece over shock calls for referendum which pushed Europe to the brink of financial disaster [Mail Online, Last updated at 6:23 PM on 2nd November 2011]
Original headline: The gloves are off! Greek PM prepares for showdown with Merkel and Sarkozy tonight as Europe teeters on the brink of financial disaster

George Papandreou has arrived in Cannes, France, after securing his ministers’ support for the vote in a mammoth seven-hour cabinet meeting last night. The referendum could take place next month.

If Greece rejects the austerity measures – part of a package to stop the sovereign debt crisis spreading, Europe faces being plunged into an economic catastrophe.

Mr Papendreou will face the wrath of President Nicolas Sarkozy and Chancellor Angela Merkel this evening ahead of the G20 summit.

The pair will then meet with other top world leaders who they will try to convince that the eurozone is not in terminal decline.

Ahead of talks tonight, the White House called for a ‘unanimity of purpose’ to come out of the talks.

Spokesman Jay Carney said: ‘Our goal is for there to be a unanimity of purpose coming out of the G20, which is the preeminent forum for these kinds of discussions.’

In Greece yesterday, little was done to calm the nerves of politicians and financial markets as Athens announced extraordinary plans to sack its military leaders amid rampant speculation that it was trying to head off a coup d’etat.

‘It’s all over. The government is about to collapse,’ said one Greek official. Greece’s former deputy finance minister Petros Doukas agreed: ‘The **** has hit the fan.’

Markets rallied after big losses yesterday. In London the FTSE 100 was up 70.11 or 1.29% at 5491.68 this afternoon and in Germany and Paris, markets were up 2.62% and 1.76% respectively.

In the U.S., the Dow Jones was up 1.79% in early trading.

Economists warned that if Greece rejects the debt deal hammered out only last week, which would entail years of austerity, the entire future of the single currency is in peril.

They predicted that Italy, Spain and Portugal are likely to be plunged into a profound economic crisis because of their failure to get to grips with their towering debts.

The referendum would be an effective vote on whether or not Greece should remain in the straitjacket of the single currency and accept years of spending cuts and tax rises, or simply refuse to pay what it owes and crash out of the euro.

Greece is effectively bankrupt and cannot pay off its debts, even with the tough austerity measures that have been forced upon it.

After fierce resistance, private banks and other investors agreed at a crunch summit in Brussels last week to write off 50 per cent of what its government owes.

The agreement was aimed at cutting Greek debt from 160 per cent of its earnings to 120 per cent by 2020. Without action, it would have ballooned to 180 per cent.

But the Greek people are furious at being asked to endure years of spending cuts and tax rises. There are increasing calls for the country to leave the euro, refuse to pay its way and reinstate the drachma.

Labour peer Lord Soley said: ‘When the history of this period is written it may well be that the Greek decision will be seen as the economic equivalent of the assassination of Archduke Ferdinand at Sarajevo in 1914. It will trigger events way beyond the borders of Greece or even Europe.’

Stock markets around the world crumbled yesterday as the eurozone lurched towards financial catastrophe. The FTSE 100 index fell more than two per cent in London – down 122.65 to 5421.57 – wiping £32billion off the value of Britain’s blue chip firms.

But there were far more punishing losses on the Continent, with shares in Italy and Greece down nearly seven per cent on a day of carnage on the financial markets. The Paris stock market lost 5.38 per cent, Frankfurt tumbled five per cent and the euro fell around 1.5 per cent against the U.S. dollar.

Shares in French banks were the worst hit on fears over their exposure to Greek debt. If Athens defaults, lenders in France look set to bear the greatest losses. One, Societe Generale, fell more than 16 per cent.

British banks did not escape the bloodbath, with Barclays losing 9.5 per cent of its value and state-controlled Royal Bank of Scotland down eight per cent.

Borrowing costs in Italy soared again yesterday as the crisis threatened to spread from Athens to Rome.

Lord Adair Turner, head of the UK’s Financial Services Authority, warned that Italy’s towering debts of 120 per cent of GDP present a much bigger threat to Britain’s banks than Greece.

Inside the News: Greece seen tipping Europe into recession [ReutersVideo, Nov 1, 2011]

Greek Prime Minister George Papandreou’s referendum is putting the global financial system at risk and could push Europe back into a recession, says Brewer Dolphin Chief Strategist Mike Lenhoff.

Inside the News: ECB and IMF to press Greece over vote: RBC [ReutersVideo, Nov 2, 2011]

Nov. 2, 12:00 GMT – ECB and IMF chiefs are seen joining French and German leaders in pressing the Greek Prime Minister over his call for a referendum at the G20 meeting, says Gustavo Bagattini of RBC Capital Markets.

Euro zone needs lower rates, stimulus measures, says OECD [ReutersVideo, Nov 2, 2011]

OECD Secretary General Angel Gurria says swift implementation of the euro zone debt deal needs to be backed up by lower rates and more stimulus spending in order to save the debt-ridden region.

A look at whether Mario Draghi can save the euro [ReutersVideo, Nov 2, 2011]

As Mario Draghi prepares to chair his first meeting as ECB President, politicians and market players assess how the bank will change under his leadership and whether he can save the euro.

Greek PM risks all on referendum [AlJazeeraEnglish, Nov 1, 2011]

Less than a week after French and German leaders brokered yet another debt deal for the nation, Athens is now putting the plan, including a proposed 50 per cent write down of Greek debt through a referendum to be voted on by the people. However, the eurozone deal is not the only thing George Papandreou is putting on the line in the impending vote. With only a three-seat majority in the parliament, the prime minister is also putting his own leadership to the test with a confidence vote. Despite on-going protests, the Greek people themselves say they want to remain in the European Union but that the eurozone nations were more focused on the nation’s ailing banks and less on the Greek people themselves.

Greeks greet referendum with cynicism [AlJazeeraEnglish, Nov 1, 2011]

Greek Prime Minister, George Papandreou announced that he would be holding a referendum on the bail-out package – a surprise to his own party, his people, and to all of Europe. Rumours and questions as to why Papandreou made the surprise move are rife, but the minister is keeping his counsel for now. With concern that the referendum would be unlikely to take place before January, creating months of uncertainty for the markets, the mood in Athens is one of cynicism and despair. Al Jazeera’s Barnaby Phillips reports from Athens.

‘Papandreou may not survive no-confidence vote’ [AlJazeeraEnglish, Nov 1, 2011]

The Greek prime minister has been criticised over his decision to hold referendum over EU bailout package. This announcement by George Papandreou seems to have come as a surprise even to his cabinet, and a group of parliamentarians from his own party have called for his resignation. Al Jazeera’s Jonah Hull, reporting from Athens, says Papandreou’s gamble is not working his way and he may not survive a no-confidence vote on Friday.

Rovelli Says Greece Uncertainty `Killing’ Stock Market [Bloomberg, Nov 1, 2011]

Nov. 1 (Bloomberg) — David Rovelli, managing director of U.S. equity trading at Canaccord Genuity Inc., discusses stock market performance amid concerns that a Greek referendum pledged by Prime Minister George Papandreou may threaten Europe’s bailout. Rovelli speaks with Betty Liu and Dominic Chu on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)

Donovan Says Greece Referendum Makes Sense Politically [Bloomberg, Nov 1, 2011]

[He says “there is a democratic deficit behind the Euro zone” and “for me global recession is zero possibility”] Nov. 1 (Bloomberg) — Paul Donovan, managing director, global economics at UBS AG, discusses the Greek referendum on Europe’s bailout and the outlook for the global economy. Donovan speaks with Francine Lacqua on Bloomberg Television’s “The Pulse.”

Markets dive on Greek referendum shock [euronews-en, Nov 1, 2011]

[From euronews.net] Greek Prime Minister George Papandreou’s decision to let his people vote on the country’s bailout package caused the world’s financial markets to go into freefall on Tuesday.

The deal to rescue Greece and prevent a wider sovereign debt crisis is now in disarray just days after European leaders had agreed the outlines of a second bailout for Athens at marathon summit talks in Brussels.

Around Europe and on Wall Street there was a massive sell-off in the region’s stock markets with banks suffering worst, and French banks, which are among the most exposed to Greek government debt getting hammered.

“We have just added fuel to the fire and we don’t understand at all the decision of the Greek PM,” said Marc Touati, chief economist at Assya Compagnie Financiere in Paris.

“If there is a referendum the ‘no’ will win. Greece is playing a suicidal game that could lead to its exit of the euro zone so there is fear on French banks, but also on (euro zone) states.”

Investors have lost confidence in the Greek government, even more so when it was learned the prime minister had not informed his own finance minister before announcing his decision to hold the referendum. European leaders were also taken by surprise.

French President Nicolas Sarkozy and German Chancellor Angela Merkel scrambled to limit the damage.

They will hold an emergency meeting with the Greek prime minister in Cannes before the G20 Summit to push for a quick implementation of Athens’ bailout deal, Sarkozy’s office said in statement, but whether that is possible remains to be seen.

Andrew Lim, banking analyst at Espirito Santo in London, said that a Greek “no” vote could trigger a “hard default”, forcing banks to take losses of about 75 percent on their Greek sovereign bondsand raising the threat of a systemic risk.

“If we get a hard default in Greece, it will exacerbate the situation with Italy and Spain. It just increases the problem of Italy going down the same route, and that’s the real risk,” Lim said.

Hellas Frappe by Marina Spanos:

My name is Marina Spanos. I am a Greek-Canadian citizen who lives half her time in Greece, and half her time in Montreal, Quebec. I am a freelance journalist, graphic artist and translator.

I noticed that everyone I knew wanted and desired an alternative scope on the matters that concerned their nation, their heritage and simple everyday life, because much like myself they were tired of mainstream media news but could not find an alternate way to learn more about the matters that concerned them most. A blog, was the only logical answer, so I began the blog in late January 2011.

Another reason I started up this blog is my own personal frustration with the ignorance that is allowed to exist in the world and the system that fuels it. I am strongly in the opinion that too much important information is being controlled by people in power who shouldn’t even be trusted to hand out complementary perfume samples, let alone direct public opinion.

… much to my surprise people really started to question what they were hearing, what they were reading… People began to debate the information that they were being served to by the mainstream media. Subjects such as politics, the economy and science became “fashionable” once again. The result: They have now set out on their own journey to uncover the truth. For me… it was mission accomplished.

Nonetheless, being the dynamic individual that I am, I then set out to take the blog to newer levels. That is why I have decided to develop it into an online news magazine. This requires that I begin feeding it articles everyday, accept articles from contributors and diversify every category.

Papandreou Calls For Referendum Blackmailing Greek People With Future in EU [Hellas Frappe, Oct 31, 2011]

… The media that supports the government will dramatize the event saying that if we vote yes then we will have to accept Bulgarian-style factory wages and loss of sovereignty and if we vote no then we will have to learn to live on coupons, and go back to the drachma.  …

… remember Article 44 of the Greek Constitution which stipulates that a referendum for financial matters cannot be held and must instead be voted on in parliament by 151 votes! …

And here comes the conspiracy part of this whole bit of news. We all know that Papandreou has been accused by main opposition New Democracy MP Panos Kammenos of committing treason on CDS contracts (click for that story here). What if this last move by Papandreou has some connection to this?

The Olympia website just released an article saying that there is only one way that Greece can be “THROWN” out of the Eurozone and that is if there is a military coup.

This is not that far-fetched, just five days ago coincidentally Forbes magazine also published a similar article claiming that the real solution to the Greek problem is a military coup. In fact the report said that instead of Germany trying to fund the Greek debt they should instead sponsor such a coup.

What Papandreou did not achieve through Europe, in regards to the CDS contracts accusations made against him by Panos Kammenos, he might now be trying to achieve from a side door, in other words by provoking a chaotic environment so that a military coup can happen. In other words, the abolition of democracy in this country.

CDS are not paid if a credit event is triggered because there is a declaration of war. But hedge fund holders can cash in if there is an abolition of democracy such as a “military coup”…. Here is the link for that http://www.zerohedge.com/article/cia-warns-greek-military-coup-rebellion-if-austerity-intensifies

Beglitis Replaces Chiefs of Staff With Loyal PASOK Soldiers [Hellas Frappe, Nov 1, 2011]

… Defense Minister Panos Beglitis added even more fuel to the fire a little earlier by firing the Hellenic Chiefs of Staff to replace them with officers that are loyal to the socialist party.

Beglitis’ decision to make these changes can only be described as purposely provoking a chaotic climate.

And possibly even triggering the “coup” we spoke about in yesterday’s article…

Are we headed for another Lehman moment in Europe? [RT America interview of Reggie Middleton, Oct 20, 2011]

With the Eurozone crisis heating up, protests getting violent in Greece and rating agencies renewing their downgrades of PIIGS nations, what does all of this mean for some of Europe’s biggest banks that are most exposed to these countries? Are we headed towards another banking crisis, this time in Europe? Where will it start, and can contagion reach the US? You are going to be shocked to find out what entrepreneurial investor and independent analyst Reggie Middleton says US taxpayers could be on the line for.

… Lehman was one bank relatively small. The European banks have the same essential problem that Lehman Brothers did it is just sad that there are so many of them. … To be absolutely honest the only solution to the problem is the politically unfeasible solution and that is debt destruction. … What I’ve been seen in the media basically game playing and political ??? trying to use more debt to solve an indebtedness situation, trying to use financial engineering to solve a problem that was caused by financial engineering. … <Σ: US taxpayers [through their saving accounts] are second in line – once again – next to investors> … Very difficult to predict the timing [of a …] One guarantee is that a Lehman type collapse is going to happen in Europe. …

Who is Reggie Middleton and What is BoomBustBlog? [by his own BoomBusBlog, July 25, 2010]

Reggie Middleton is an entrepreneurial investor who guides a small team of independent analysts to uncover truths, seldom if, ever published in the mainstream media or Wall Street analysts reports. Since the inception of his BoomBustBlog, he has established an outstanding track record, including but not limited to, the call of….

  1. The housing market crash in the spring of 2006 and publicly in September of 2007 …
  2. Home builders falling and their grossly misleading use of off balance sheet structures to conceal excessive debt in November of 2007 ….
  3. The collapse of Bear Stearns in January 2008 (2 months before Bear Stearns fell, while trading in the $100s and still had buy ratings and investment grade AA or better from the ratings agencies) …
  4. The warning of Lehman Brothers before anyone had a clue!!! …
  5. The fall of commercial real estate in general (September of 2007) and the collapse of General Growth Properties [nation’s 2nd largest mall owner] in particular (November 2007) …
  6. The collapse of state and municipal finances, with California in particular (May 2008) …
  7. The collapse of the regional banks (32 of them, actually) in May 2008 …
  8. The collapse of the monoline insurers, Ambac and MBIA in late 2007 & 2008 …
  9. The overvaluation of Goldman Sachs from June 2008 to present …
  10. The ENTIRE Pan-European Sovereign Debt Crisis (potentially soon to be the Global Sovereign Debt Crisis) starting in January of 2009 and explicit detail as of January 2010 …
  11. Ireland austerity and the disguised sink hole of debt and non-performing assets that is the Irish banking system …
  12. The mobile computing paradigm shift, May 2010 …

Selling More CDS on Europe Debt Raises Risk for U.S. Banks [Bloomberg Business Week, Nov 2, 2011]

U.S. banks increased sales of insurance against credit losses to holders of Greek, Portuguese, Irish, Spanish and Italian debt in the first half of 2011, boosting the risk of payouts in the event of defaults.

Guarantees provided by U.S. lenders on government, bank and corporate debt in those countries rose by $80.7 billion to $518 billion, according to the Bank for International Settlements. Almost all of those are credit-default swaps, said two people familiar with the numbers, accounting for two-thirds of the total related to the five nations, BIS data show.

The payout risks are higher than what JPMorgan Chase & Co., Morgan Stanley and Goldman Sachs Group Inc., the leading CDS underwriters in the U.S., report. The banks say their net positions are smaller because they purchase swaps to offset ones they’re selling to other companies. With banks on both sides of the Atlantic using derivatives to hedge, potential losses aren’t being reduced, said Frederick Cannon, director of research at New York-based investment bank Keefe, Bruyette & Woods Inc.

“Risk isn’t going to evaporate through these trades,” Cannon said. “The big problem with all these gross exposures is counterparty risk. When the CDS is triggered due to default, will those counterparties be standing? If everybody is buying from each other, who’s ultimately going to pay for the losses?”

Hedging Strategies

Similar hedging strategies almost failed in 2008 when American International Group Inc. couldn’t pay insurance on mortgage debt. While banks that sold protection on European sovereign debt have so far bet the right way, a plan announced yesterday by Greek Prime Minister George Papandreou to hold a referendum on the latest bailout package sent markets reeling and cast doubt on the ability of his country to avert default.

The CDS holdings of U.S. banks are almost three times as much as their $181 billion in direct lending to the five countries at the end of June, according to the most recent data available from BIS. Adding CDS raises the total risk to $767 billion, a 20 percent increase over six months, the data show. BIS doesn’t report which firms sold how much, or to whom. A credit-default swap is a contract that requires one party to pay another for the face value of a bond if the issuer defaults. …

Five Banks

Five banks — JPMorgan, Morgan Stanley, Goldman Sachs, Bank of America Corp. and Citigroup Inc. — write 97 percent of all credit-default swaps in the U.S., according to the Office of the Comptroller of the Currency. The five firms had total net exposure of $45 billion to the debt of Greece, Portugal, Ireland, Spain and Italy, according to disclosures the companies made at the end of the third quarter.

In theory, if a bank owns $50 billion of Greek bonds and has sold $50 billion of credit protection on that debt to clients while buying $90 billion of CDS from others, its net exposure would be $10 billion. This is how some banks tried to protect themselves from subprime mortgages before the 2008 crisis. Goldman Sachs and other firms had purchased protection from New York-based insurer AIG, allowing them to subtract the CDS on their books from their reported subprime holdings.

‘AIG Moment’

When prices of mortgage securities started falling in 2008, AIG was required to post more collateral to its CDS counterparties. It ran out of cash doing so, and the U.S. government took over the company. If AIG had collapsed, what the banks saw as a hedge of their mortgage portfolios would have disappeared, leading to tens of billions of dollars in losses.

“We could have an AIG moment in Europe,” said Peter Tchir, founder of TF Market Advisors, a New York-based research firm that focuses on European credit markets. “Let’s say Greece defaults, causing runs on other periphery debt that would trigger collateral requirements from the sellers of CDS, and one or more cannot meet the margin calls. There might be AIGs hiding out there.”

Dexia Bailout

The bailout of Dexia SA by Belgium and France last month resembled AIG’s rescue.

Counterparty CDS

Triggering Default

European leaders are doing everything they can not to trigger the default clauses in CDS contracts to avoid putting the banking system at risk. They persuaded bondholders to accept a 50 percent loss on their holdings of Greek debt in an agreement reached in Brussels last week with the Institute of International Finance, an industry association. The deal calls for a voluntary exchange of debt.

Another trade group, the International Swaps & Derivatives Association, or ISDA, decides whether a debt restructuring triggers CDS payments. The committee that will rule on the Greek deal is made up of 10 bank representatives and five investment managers and needs 12 votes to reach a decision. ISDA said on Oct. 27 that the agreement would most likely not be considered a default since it’s voluntary.

Favoring Big Banks

“The ISDA ruling favors the big banks that sold the CDS because those banks sit on the ISDA board,” said Tavakoli, a former head of mortgage-backed-securities marketing at Merrill Lynch & Co. “Smaller banks or other institutions that might have bought the swaps to protect against a default like this don’t have as much influence.”

‘Risk-Creation’

“Geithner keeps asking Europeans to fix their shop, but he doesn’t do anything to rein in the risk-creation at home through these derivatives,” Whalen said.

MF Global

MF Global Holdings Ltd., a broker-dealer run by former Goldman Sachs co-Chairman Jon Corzine, reported $1 billion of net exposure to Spain and $3 billion to Italy in its second- quarter financials, explaining in a footnote that the net was partly due to a short position on French bonds. Those hedges weren’t enough to protect MF Global, which filed for bankruptcy yesterday after losses in the portfolio wiped out its capital.

Hedging and other ways of netting help banks report lower exposures than the full risk they might face. Morgan Stanley said last month that its net exposure in the third quarter to the debt of Spain’s government, banks and companies was $499 million. The Federal Financial Institutions Examination Council, an interagency body that collects data for U.S. bank regulators and disallows some of the netting, said the New York-based firm’s exposure in Spain was $25 billion in the second quarter.

The net figure for Italy was $1.8 billion, Morgan Stanley said, compared with $11 billion reported by the federal data- collection body.

Ruth Porat, 53, Morgan Stanley’s chief financial officer, said during a call with investors after the earnings report last month that the data compiled by regulators didn’t take into account short positions, offsetting trades or collateral collected from trading partners.

“It’s the firms that don’t post collateral because they’re seen as more creditworthy that pose the counterparty risk,” said Tchir. “Those could be insurance companies, mid-size European banks. If some of those fail to pay when the CDS is triggered, then the U.S. banks could be left holding the bag.”

China’s leaders cautious on EU rescue plan [Keith B. Richburg, The Washington Post, Nov 1, 2011]

When President Hu Jintao travels this week to the glamorous French resort of Cannes for a summit of the world’s 20 leading industrialized and developed nations, it should be China’s moment to swagger on the global stage.

China’s leaders will contribute to Europe’s bailout fund, economists and other analysts here said. But they are doing so mainly because they have little choice, since a continued economic crisis in Europe is bad for China, too.

China’s ability to assist Europe — and to bankroll the U.S. debt through the purchase of Treasury securities — comes from its huge surpluses. The European Union, China’s largest export market, has a trade deficit with China of about $230 billion.

China’s leaders also are moving cautiously because they are acutely aware that Chinese public opinion is firmly against helping bail Europe out of its debt crisis. Comments on the hugely popular
Twitter-like microblogging sites,
called weibo, offer a window into the popular sentiment.

For China’s netizens, Europeans enjoy a rich lifestyle with lavish early-retirement packages and several weeks of paid vacation each year, while the majority of Chinese can barely earn enough to make a living. So why should China’s government be using its hefty reserves — the people’s money — to help Europe instead of improving living conditions at home?

“The root of the heavy European debt is excessive welfare,” wrote one weibo user under the name “Turbulence and Change.” “They have a large number of lazy people. Even if China doesn’t offer a hand, Europeans still won’t live worse than Chinese. Furthermore, no European will die of hunger.”

… the best way China could help Europe and the global economy in the long run is to return some of its huge reserves to Chinese consumers, which would increase their purchasing power — a wrenching long-term change that China’s leaders have already publicly pledged to make.

China’s leaders have said they are awaiting details of the new European Financial Stability Facility before making any firm commitment. The chief executive of the fund, Klaus Regling, came to China last week and met top finance and central bank officials, but got no guarantees.

TD-SCDMA: US$3B into the network (by the end of 2012) and 6 million phones procured (just in October)

Updates: China government not expected to issue TD-LTE operating license for the time being [Jan 16, 2012]

While China Mobile has been actively promoting TD-LTE, the China government is not expected to issue a TD-LTE operating license to China Mobile for the time being, according to industry sources.

China Mobile finished initial TD-LTE trials in seven selected cities in China around the end of 2011 and has proposed a second-round of trials, but the China government has not yet approved the plans, signaling the government’s attitude to slow down promotion of TD-LTE in China, the sources indicated.

This is because 3G mobile communication services are taking off in the China market and therefore the government does not want to issue a TD-LTE operating license out of consideration for China Telecom and China Unicom, the sources said.

– China Outstrips U.S. in Smartphone Market [Nov 23, 2011]

Deliveries of smart phones to operators and retailers in China grew 58% in the third quarter from the previous quarter to 24 million units. That surpassed 23 million units delivered to the U.S. market, down 7% from the previous quarter …

Nokia Corp. had the largest share of China’s smartphone market in the third quarter, with 29%. … Samsung Electronics Co. Ltd. is chasing hard with 18% of the Chinese market …

Strategy Analytics estimates that 57% of the world’s handsets were manufactured in China in 2010. … two of Nokia’s eight production facilities are based in China and the company said China is also one of its bigger suppliers of mobile handset components. …

End of updates

China Mobile Begins New Round of TD-SCDMA Procurement [Oct 12, 2011]

China Mobile (NYSE: CHL; 0941.HK) recently began its fifth-round TD-SCDMA equipment tender. China Mobile will further expand its TD-SCDMA 3G network by deploying base stations in county-level cities and other key urban areas, with total base stations expected to reach approximately 300,000 by the end of 2012. Mobile network equipment vendors have received tender orders and will place bids this week.

China market: China Mobile to expand TD-SCDMA network, says report [Oct 14, 2011]

China Mobile will invest an estimated CNY19 billion (US$2.97 billion) to expand its TD-SCDMA network, adding 53,000 base stations around China, according to China-based media DoNews.

China Mobile has established about 210,000 TD-SCDMA base stations around China, the report indicated.

The second-round value was not disclosed only the following became known (China Mobile Releases TD-SCDMA Tender Results [Nov 17, 2011])

The second round TD-SCDMA tender, with a scale 1.53 times that of the first round, involved 23,000 wireless base stations in 28 Chinese cities.

The third-round had a value of RMB8.6 billion ($1.26 billion), see: China Mobile releases 3rd-round TD-SCDMA bidding results [May 11, 2009]

According to China Mobile to Release Results of Phase Four of TD-SCDMA Tender [TD Forum, July 1, 2011]

China Mobile is expected to procure around 102,000 base stations for the TD-SCDMA network in 101 cities, close to the total number in the previous projects.

In the previous three TD-SCDMA network construction projects, China Mobile set up 108,000 base stations in total, with a combined investment of over CNY90 billion (USD13.16 billion).

According to Winners of New TD-SCDMA Bid [June 9, 2010]:

CMC has spent about 103 billion yuan ($15 billion) on three phases of TD-SCDMA construction so far. Insiders estimate the new round will cost about 90 billion yuan ($13 billion) based on the number of BTSs that will be 2.5 times over the previous phase. Actual spending may be different because more or less BTSs may be needed as project goes along. Previously, CMC announced a phase-down in capex to reach about 80 billion yuan ($12 billon) by 2012 from 123 billion yuan ($18 billion) in 2010, a reduction of 35% in three years.

CMC’s goal is, after the fourth phase, TD-SCDMA coverage will be available in all major cities with improved signal quality and low drop ratio. However, user experience can be very different. Even in cities where the service is available people still complain about shaky connection and jagged video especially in moving vehicles or traveling toward the edge of city. CMC officials say an objective of fourth phase is to “replenish” blind spots in existing networks missed from previous phase, a weakness that has put CMC behind its rivals in quality of service.

If everything goes smoothly, construction is expected to begin in August or September.

According to Chinese vendors take 70% of [4th round] TD tender: report [July 28, 2010]:

China Mobile has built out its network in 238 cities over the last two years. It spent 129 billion yuan ($19b) on its 2G and 3G networks in 2009-10 and this year expects to invest 123 billion yuan, of which 106 billion will go to its combined 2G/3G rollout.

CMCC to Invest CNY 19bn to Construct TD-SCDMA Network [Oct 13, 2011]

BEIJING, Oct 13, 2011 (SinoCast Daily Business Beat via COMTEX) — The insider disclosed on October that CMCC (China Mobile Communications Corporation) is to invest CNY 19 billion to construct TD-SCDMA network in different counties and important villages and towns in China.

Meanwhile, the existing TD network topology in cities will be perfected. It is reported that CMCC plans to construct 53,000 new TD base stations. Through the first four phases of construction and continuous blind compensation, CMCC has constructed 210,000 base stations by the beginning of this year.

The invitation for the bidding started from the later half of September and has entered into the crucial bidding returning stage at present. According to the requirements of CMCC, manufacturers have to return the tenders today.

It is specially required by CMCC that the TD-SCDMA network to be newly constructed should be smoothly upgraded to TD-LTE network with the same frequency, namely, the TD-SCDMA network should be upgraded and evolved to the future LTE-frequency network in terms of wireless equipment, core network equipment, transmission and supporting facility at current frequency.

Source: http://www.sina.com.cn (October 13, 2011)

The current subscriber data (from the corresponding operators, till August 2011) is indeed showing that China Mobile TD-SCDMA needs a significant boost in the subscriber numbers:

China - TD-SCDMA and W-CDMA 3G subscibers -- Aug-2011

China Mobile had 627.628 million mobile subscribers as of August 31, 2011, and 40.318 million 3G subscribers, that is only 6.4% of the overall.

China Unicom meanwhile had 186.1 million mobile subscribers as of August 31, 2011, and 27.868 million 3G subscribers, that is as much as 14.97% of the overall.

China Mobile to purchase 6 million TD-SCDMA mobile phones [Oct 9, 2011]

According to a notice issued to all mobile phone manufacturers , China Mobile has launched a new round of TD-SCDMA mobile phone purchases before National Day [Oct 1], and plans to purchase six million universal TD mobile phones.

All procurement of universal TD handset

A relevant mobile phone manufacturer said this purchase is called “universal G3 mobile phone” centralized procurement project, the procurement of universal G3 mobile phone estimates about 6 million, including 3.6 million low-end TV terminals , 2.4 million mid-end TV terminals.

The mobile phone manufacturers received invitation to tender on the September 29th 16:00 to 18:00 and September 30 9:00-18:00 .

The TD phones purchases maybe related to the fourth round TD-SCDMA network Construction. The construction is currently underway and will be extended to almost all cities of the country. In this case, the demand for TD mobile phones increased.

Chipmakers are ready to support that:

First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]
especially because: Kinoma is now the marvellous software owned by Marvell  [Feb 15, 2011]

Spreadtrum is the other big player in that:

China Mobile To Adjust Subsidies For TD-SCDMA Terminals [Oct 17, 2011]

China Mobile (0941.HK) plans to adjust the subsidies given to buyers of its TD-SCDMA terminals in order to expand the pool of its 3G users following several unsuccessful attempts to introduce Apple Inc’s iPhone, reports yicai.com.

Li Liyou, the C.E.O. of a TD-SCDMA chip maker [chairman of Spreadtrum], said the largest mobile operator in China has cut the procurement of TD-SCDMA terminals by two-thirds, and buyers of TD-SCDMA phones which are included under the operator’s list of TD-SCDMA phones will now be able to enjoy fee rebates.

According to Li, 2012 will be the year in which GSM mobile phones are replaced by TD-SCDMA phones as the difference in production cost per phone is reduced to less than $2, and TD-SCDMA smartphones currently cost about $60 to make, and can be sold to customers at 700 yuan each.

Procurement by China Mobile currently accounts for less than 30 percent of total TD-SCDMA terminal sales volume, said Gao Guiming, vice president of Changhong Communication and Digital Information.

Spreadtrum Meets Milestone for China Mobile TD-SCDMA Grant [Sept 30, 2011]

Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced that in 3Q 2011 it has met the last major milestone of a TD-SCDMA research and development grant awarded by China Mobile to the Company in 2009.  This marks successful completion of the project and will enable the Company to recognize more than US$8 million in research and development grants as an offset to operating expenses in the third quarter of 2011, including subsidies recognized from both the China Mobile and other government projects. Spreadtrum’s TD-SCDMA customers include more than 30 global and domestic tier-1 manufacturers and design houses who have introduced more than 72 feature phone and smartphone models in 2011 using Spreadtrum’s baseband solutions.

Spreadtrum now commands more than 50% market share of TD-SCDMA shipment volumes.  Dr. Leo Li, Spreadtrum’s president and CEO commented, “We are the clear leader in the feature phone and fixed wireless segments of the TD-SCDMA market, which account for the majority of industry shipments so far this year. Our 40nm-based single-chips with TD-SCDMA/EDGE/GPRS/GSM, multi-media and power management features have enabled customers building handsets on our platform to achieve breakthrough standby and talk times, at a retail price point that is attractive to 3G handset buyers.  We further expect to expand our footprint in the smartphone segment following the launch of our low-cost single-chip smartphone product.”

Dr. Li added, “In addition to today’s news and in response to recent shareholder inquiries, we would like to provide additional clarification on our corporate structure.  Our primary operations in China are conducted through a wholly foreign owned enterprise (WFOE), distinct from the variable interest entity (VIE) structures that are common in the China Internet sector and that have been the subject of recent press speculation with regards to possible PRC or US government review.  There is no active investigation that we are aware of by either the China government or the US Department of Justice of our corporate structure or accounting practices, which adhere to conservative interpretation of US GAAP.”

Spreadtrum Counts on Taiwan’s Chipmakers to Win 3G Battle In China [Oct 3, 2011]

Spreadtrum Communications Inc. of mainland China has contracted Taiwan Semiconductor Manufacturing Co. (TSMC) and Advanced Semiconductor Engineering Inc. (ASE) to make its baseband chips designed on 40nm process rule amid white-hot competition among the mainland’s 3G chip vendors.

Spreadtrum has commanded a 56% share of the mainland market for the wireless chips specifically designed for mobile phones that are built on the TD-SCDMA (time-division synchronous code division multiple access) 3G format, which is spearheaded by China Mobile Co., Ltd.

The chip vendor recently completed a 40nm chip design, which it claimed consumes only two thirds of the electrical power that a 65nm chip does and brings down the cost of TD-SCDMA phone close to that of the 2.7G EDGE handset.

Spreadtrum has designated TSMC to make the chips and ASE to package the chips for it in conjunction with China Mobile’s plan to promote TD-SCDMA handsets during the 2012 Chinese New Year holidays, which will begin on Jan. 23.

The vendor will begin pilot production of its chips for the 4G TD-LTE (time division long term evolution) phones at the end of this year also at TSMC and ASE.

Industry executives expect Spreadtrum to retain the championship in the mainland’s market for the TD-based chips given that it has shied away competition against Taiwan’s MedaTek Inc. for a slice on WCDMA (wideband code division multiple access) market, where competition is keener among chip vendors than on TD-SCDMA market. In addition to MediaTek, competitors in the mainland’s WCDMA market include MStar Semiconductor Inc., Qualcomm Inc. and ST-Ericsson Inc.

The mainland now has around 100 million subscribers to 3G telecommunications service, which is mostly provided by China Telecom on CDMA2000 network, China Unicom on WCDMA network and China Mobile on TD-SCDMA network.

More on supply chain battles for …

preceding post: Supply chain battles for much improved levels of price/performance competitiveness [Aug 16, 2011]

Digitimes Insight: Acquisition of Motorola may enhance Android services [Aug 30, 2011]

Due to Google’s recent acquisition of Motorola including the tablet vendor’s mobile hardware business, market players have had growing concerns that Google may be heading toward the same business direction as Apple – to work on its own integration of software and hardware. With some of Google’s hardware partners already re-evaluating their strength of support for Android.

However, Digitimes Research believes that the chance for Google to put its focus on operating Motorola’s mobile hardware business is rather slim. Instead, through the acquisition of the hardware business, Google may be considering providing its partners with free hardware reference designs, which would improve its level of support and services, and could significantly affect the mobile device industry in the future.

If Google plans to put any focus on operating Motorola’s mobile device business, it would mean that Google will need to work on increasing the profitability of the hardware, but the idea would conflict with the original aims for Android – to lower the cost for consumers to access the Internet – since consumers will need to pay more to purchase the devices.

Meanwhile, Google is also unlikely to compete for market share through price competition as large shipments with low profitability can easily create inventory pile-ups during a economic slowdown.

Therefore, operating the business on a small scale, but maintaining its strategic role is the most suitable strategy for Google.

If Google’s operation of Motorola’s mobile device business shrinks down to only keeping teams for basic hardware design; software and hardware integration; and basic sales for future cooperation with telecom carriers, Google will be able provide free hardware reference designs for Android devicesto its brand and retail channel partners for production and sales.

Reference designs would greatly benefit brand vendors which have smaller production scales or are crossing over from other industries, as well as channel retailers and telecom carriers. These players will only need to place orders to Google-certified OEMs to be able to receive their shipments, completely eliminating R&D costs.

For Google, such a strategy would free the company from burdens such as back-end inventory, supply chain management, front-end marketing and after-sales services, while allowing Google to provide its users the same high-standard experience of Android, as well as the ability to control product quality.

For hardware players, which have strong R&D capabilities, if such a strategy comes true, these players will face tougher competition from smaller-scale players, as these players will be able to offer Android-based machines at lower prices, while still maintaining a standard level of quality.

For ODM players, their value of providing software and hardware design and integration services will be weakened as demand from clients will decline.

Samsung reportedly recruits ex-HP VP for PC business; considers buying webOS [Aug 29, 2011]

Samsung Electronics, despite refuting reports it plans to take over Hewlett-Packard’s (HP’s) PC business, reportedly has already recruited HP’s ex-vice president of PSG marketing Raymond Wah to handle Samsung’s PC sales, and the company is also reportedly considering purchasing webOS to compete head on against Apple and Google, according to sources from notebook players.

Both HP and Samsung have declined to comment about the purchase of webOS.

The sources noted that the acquisition of HP’s PC business, which has a rather low gross margin, may turn out to hurt Samsung’s panel and DRAM businesses that have rather high gross margins, therefore HP’s webOS may be the target that Samsung has the most interest in.

In addition, Google’s acquisition of Motorola, which may seriously threaten hardware brand vendors, could also trigger Samsung to purchase webOS as a counter measure, the sources added.

Regarding Recent Rumors about Samsung’s PC Business [Samsung Tomorrow, the Samsung Electronics Official Global Blog, Aug 24, 2011]

The recent rumors that Samsung Electronics will be taking over Hewlett-Packard Co.’s personal computer business are not true.

We hope this clarifies any confusion that may have occurred.

Samsung May Buy WebOS [Aug 30, 2011]

Samsung may purchase HP’s WebOS, in a move that would help the phone maker differentiate itself from other Android phone makers in the wake of Google’s Motorola acquisition.

HP recently announced it will spin off its consumer PC division and discontinue its WebOS operations, essentially exiting the smartphone and tablet business despite its software’s good reviews. Samsung, which earlier debunked rumors of acquiring HP’s PC division, may be investigating WebOS instead, according to website Digitimes.

The Korean company staked a claim for itself in the smartphone market with Android devices, like the growing Galaxy line, and has already developed its proprietary Bada platform, designed for newer smartphone users.

However, Google’s recently announced acquisition of phone maker Motorola is anticipated to change dynamics in the Android phone ecosystem as the company shifts from software into the hardware business. If Google becomes a probable rival, phone makers previously reliant on Android may choose to diversify their software options.

Many companies have already been doing this. HTC is set to launch a group of phones running Microsoft’s Windows Phone Mango release, and Samsung today announced it will roll out a line of Wave smartphones powered by Bada.

Acquiring WebOS would be another option for Samsung, as recent fire sales of HP’s discontinued TouchPad device illuminate the software, which has garnered strong reviews. With TouchPad stock nearly sold out, whoever owns the software may have a strong base of users that buys apps and attracts advertisers.

The OS already increased its market share in mobile advertising on the strength of the recent fire sale, one of many signs of a strange, surprising second life for the tablet and its platform. But HP may choose to retain its rights to WebOS and license the platform, as previously hinted.

However, because Samsung already has Bada, some believe HTC may be a more probable buyer of WebOS. The company uses third-party software on all of its phones, but may choose to increase its options as the Google-Motorola acquisition’s effects play out in the longer term.

WebOS was considered a moribund product when it initially launched with HP’s TouchPad a few weeks ago, but the surprisingly brisk fire sales may have given the OS at least a new lease. A new user base now exists for the software, and HP itself today promised software updates to cater to this new audience.

As the fate of Android after Google’s Motorola acquisition — as well as its increasing legal vulnerabilities in patent lawsuits — begins to loom over Android makers, many companies may eye WebOS in a new, favorable light.

Samsung enhances its own mobile platform with the launch of ‘bada 2.0’ [Samsung Tomorrow, the Samsung Electronics Official Global Blog, Aug 25, 2011]

Samsung Electronics has announced the bada 2.0 SDK (Software Development Kit), an application development tool for Samsung’s own mobile platform. Bada 2.0 is expected to be a catalyst in expanding the global distribution of bada smartphones, which have already received significant global sales.

Unveiled at Mobile World Congress in February 2011, bada 2.0 includes many compelling, new features. Borne of Samsung’s heritage in innovation, bada 2.0 brings together a wide variety of new capabilities including multi-tasking, Wi-Fi Direct, Near Field Communication (NFC) and voice recognition. It enables smartphone users to experience advanced services such as mobile payment, transport pass-card recharge and file sharing without Internet networking.

With the improved support for web applications including Flash and HTML 5, users can experience enhanced web capabilities. It also means that smartphones based on bada 2.0 can run any web application developed with Flash or HTML. Samsung expects that this upgrade will help to greatly expand its developer community into Flash and JavaScript as well as the existing C++ community.

A key feature for developer partners is the introduction of In-app Ads. Using the Ads API (Application Programming Interface) developers for bada 2.0 can easily insert advertisements, creating new revenue opportunities. Samsung has also upgraded and strengthened its application development environment, providing developers with increased support. An Emulator has been added to foster a development process suitable to the target environment. Tools such as Profiler optimize the device’s performance ensuring that resources like memory and processing power are used to their fullest capacity.

Samsung has enhanced the ‘Samsung Apps’ retail store and expanded full availability through to 121 countries worldwide. With this 2.0 version, more differentiated functions will be offered from Samsung Apps, including new purchasing options and recommendations.

“Samsung bada and our Wave devices continue to succeed around the world, taking advantage of the mobile technology and brand awareness of Samsung’s leadership in the market,”

-JK Shin, president and head of Samsung’s Mobile Communications Business

In the third quarter this year, three new Wave smartphones, powered by bada 2.0, will launch the market; the devices will range from premium models with enhanced performance to entry-level devices that focus on affordability. Bada 2.0 SDK can be downloaded from the bada developer site (developer.bada.com).

A Trio of new bada 2.0-powered ‘Wave’ Smartphones to Debut at Berlin [Samsung Tomorrow, the Samsung Electronics Official Global Blog, Aug 30, 2011]

Samsung Electronics has announced the launch of the flagship 4” chic smartphone Wave 3, the social-powerhouse Wave M and the smart-start Wave Y. These all wave smartphones will be on display at Samsung’s Stand at IFA 2011 in Berlin.

All three devices, borne of Samsung’s heritage in innovation, are powered by Samsung’s own new Bada 2.0 platform which brings together a wide variety of new capabilities including multi-tasking, Wi-Fi Direct, voice recognition and Near Field Communication.

ChatON is Samsung’s proprietary mobile communication service that works across all major mobile devices. A global cross-platform communication service links all your friends and contacts instantly. Micro-communities can be set up through group chat, while a web client allows the sharing of content and conversations between mobile and PC.

Samsung Apps, an integrated application store for Samsung smartphones, is also available. With an improved UI and enhanced store features, Samsung Apps offers a wide variety of applications from globally well-known content to locally-customized applications.

“Smartphones are gaining popularity by the day. The new additions to the Wave portfolio are the first to benefit from the power of our bada 2.0 platform; the full extent of our commitment is clear to see in each device. We’ve produced easy-to-use smartphones that will inspire the market,”

– JK Shin, President and Mobile Communications business

Smarts meet style, the Wave 3

The Samsung Wave 3 is a beautiful and chic smartphone that crams a market-leading 4” Super AMOLED display. Building on the Wave series’ style heritage in full metal design, the Wave 3 is the perfect device for the style-conscious consumer. Excellently constructed of anodized aluminum, the slim yet solid unibody design supports your active, on-the-move lifestyle. With smarter multi-tasking, seamless push notification and Wi-Fi Direct, the Wave 3 has the capabilities to keep you connected and entertained at all times.

The first ChatON equipped smartphone, the Wave M

The Samsung Wave M allows users to keep up-to-date with their hectic social lives with ChatON and Social Hub. With a wide 3.65” HVGA screen made from tempered glass and a metallic body, the Wave M lets users stay socially connected from everywhere. ChatON, streamlined messaging feeds, enhanced on-the-go web browsing and Wi-Fi applications deliver a seamless mobile experience. Wi-Fi Direct and NFC (optional) add further functionality.

A smart-start, the Wave Y

The Samsung Wave Y is the perfect device to introduce new users to the world of smartphone experiences. With a stylish metallic hairline body and large 3.2” HVGA screen, new users can take their first steps to mobile social networking with Social Hub and ChatON. Simple personalisation is enabled via the Live Panel, Lock Screen and Folder management, while Music Hub, a portable music manager, gives users a jukebox in their pocket.

Products Specification:


All Functionality, features, specifications and other product n formation provided n this content, including but not limited to the pricing, design, components, performance, benefits, capabilities, services and availability of the product, may vary by region and are subject to change without notice or obligation.

Asustek set to launch 5-6 Ultrabook models in October [Aug 29, 2011]

Asustek Computer is set to host a product launch conference for Ultrabooks in New York in October with prices to range from US$899-US$1,999, according to company chairman Jonney Shih.

Asustek will release 5-6 Ultrabook models in October with screen sizes of 11.6- or 13.3-inch.

Shih also noted that the recent price drop of several key components such as panels and DRAM has enabled the company to lower the overall cost of Ultrabooks, and with HP having abandoned its PC business, while Dell and Toshiba are expected to turn cautious about Ultrabooks, the new market is likely to be mainly propped up by Acer and Asustek.

Although Intel still has not accept downstream partners’ requests to cut Ultrabook CPU prices, the company has offered to provide extra assistance to allow its partners to launch sub-US$1,000 models, according to sources from upstream component players.

Asustek upbeat as shipments rise [Aug 27, 2011]

Asustek Computer Inc (華碩), the world’s No. 5 PC brand, yesterday said it expected revenues to regain their growth momentum in the third quarter, helped by a 16 percent growth in notebook computer shipments.

The company is aiming to ship 3.6 million notebooks this quarter, up about 16 percent from 3.1 million units last quarter, while it aims to double shipments of its tablet PCs to 800,000 units from 400,000 units, according to a company statement.

Shipments of netbook computers, which accounted for 13 percent of Asustek’s overall revenues in the second quarter this year, will grow slightly to 1.1 million units this quarter from 1 million the previous quarter.

Gross margins rose to 14.7 -percentfrom last year’s 11.9 percent, but were down from 15.5 percent in the first quarter of this year.

However, third-quarter gross margins might be “under pressure” because of Acer Inc’s (宏碁) aggressive promotion of its PCs in Europe to clear excess inventory, Asustek said.

The company, which is set to start selling its UX series ultrabook next month, is targeting a price range of US$799 to US$1,999, Asustek CEO Jerry Shen(沈振來) has said.

Acer said on Wednesday its ultrabooks would sell for between US$799 and US$1,199.

Intel has said it expected ultrabooks to initially sell for more than US$1,000, before dropping below that price point in the future.

Asustek will start selling higher-priced ultrabooks before it launches lower-priced models next year, Shen said.

Responding to analysts’ questions, he said Intel’s goal of seeing ultrabooks account for 40 percent of the consumer notebook market next year was “over-optimistic.”

He said since the product is still in the early stages of development and since there are issues to resolve such as heat dissipation and extending the battery life, the 40 percent target would only be achievable in 2013, after Intel launches its Haswell platform.

Shen also said it would focus on the Padfone — a smartphone-tablet combo— as its core smartphone development model.

[Padfone a 4.3-inch smartphone that can be inserted into its accompanying tablet’s rear docking unit, powering up the 10-inch panel to enable an enhanced multimedia experience. The tablet will only work when the smartphone is inserted into the dock.
ASUS Padfone Hands-On Introduction [May 31, 2011]
]

Here at ASUS we are firm believers behind the practice of design thinking. The Padfone has been specifically created to fulfill a demand for both smartphone and tablet users. It is a first of its kind innovation that allows you to switch seamlessly between pad and phone for a user experience that best-fits your activities, at any time. Internet access from the 3G network connection is shared between the phone and pad, as data storage is streamlined through a single storage pool.

“Compared with HTC (宏達電) or Samsung, which are good at developing smartphones, our idea of incorporating the phone into the tablet will ‘wow’ consumers,” he said.

Alex Sun (孫聰敏), corporate vice president of Asustek’s personal mobile devices business unit, last month said the company was finding a niche in the smartphone industryafter its two-year smartphone partnership with US portable navigation device maker Garmin Ltd fell through in January.

“It is the smartphone, not the tablet, that will be the highlight of the Padfone,” Sun said, adding that the tablet will only work when the smartphone is inserted into the dock.

He said prices for the Padfone would be close to that of Apple Inc’s iPhone. The Padfone will be launched in the first quarter of next year.

ASUS Padfone – Behind The Scene [May 30, 2011]

‧Enlarge your screen size any time you need to ‧Seamless transition of applications between pad and phone ‧Eliminate data transfer hassle with a single storage pool ‧One SIM card for two devices ‧Use the pad as an extended battery to charge your phone ‧Have a video conferencing experience and easily share with family and friends

ASUS Padfone – Enjoy the benefits of both Pad and Phone. Make The Switch [May 30, 2011]

Check the exclusive behind the scene footage of ASUS Padfone and people centric design concepts such as seamless data transfer, expandable screen size, 1 SIM card for two devices and more.

Asustek’s Padfone to use new version of Android OS [Aug 10, 2011]

Asustek Computer Inc. said Wednesday that its upcoming device, the Padfone, will run the next version of Google Inc.’s Android operating system, codenamed “Ice Cream Sandwich” (ICS), but the company appeared to be uncertain about the future of its mobile phone business.

The Padfone, which will go on sale at the end of this year or in the first quarter of 2012, allows users to display pictures or videos on a 10.1-inch tablet from a 4.3-inch smartphone seamlessly and to extend the battery life of the phone when the two are combined.

“We chose the ICS because of its better integration across different platforms,” Alex Sun, corporate vice president and general manager of Asustek’s personal mobile devices BU, told reporters on the sidelines of a media briefing to promote the local development of mobile apps.

The ICS, slated to be launched in the fourth quarter of this year, will improve the interoperability among these devices, allowing app developers to achieve higher synergy, according to market analysts.

Sun said Asustek also plans to launch the second generation of the Padfone in the first half of 2012, which is expected to support long-term evolution (LTE) wireless broadband technology and three-dimensional (3D) graphics.

However, Asustek will not launch any new phones by the end of this year because the company needs to “think about the future direction of its mobile phone business” after a shift in Asustek’s strategy for its smartphone lines, Sun added.

Last October, Asustek, which has been selling smartphones under the Garmin-Asus brand since early 2009, said it will not introduce any more co-branded handset models.

Instead, Asustek launched two new smartphones in China in March this year running on China Mobile’s Time Division Synchronous Code Division Multiple Access (TD-SCDMA) network, with the aim of attracting entry and mid-level smartphone users in the booming Chinese market.

The Taiwan-based PC brand sold about 1 million smartphones worldwide last year, but the company has declined to give a forecast for its total smartphone sales in 2011.

HP may resurrect TouchPad, weighs PC spinoff [Reuters, Aug 30, 2011]

Hewlett-Packard Co may resurrect its TouchPad as it weighs a spinoff of its personal computer arm, the head of its PC division said, suggesting HP might revive a tablet that lasted just six weeks in the face of stiff competition from Apple Inc.

HP stunned marketstwo weeks ago, when it announced it may shed its PC business — the world’s largest after the $25 billion acquisition of Compaq in 2002 — as part of a wrenching series of moves away from the consumer market. Those included killing off the TouchPad tablet computer.

Now, the board of the largest U.S. technology company by revenue is expected to decide before the end of the year whether to hive off its PC arm — which began selling the TouchPad in July — into a separate company, considered the best option for shareholders.

Personal Systems Group head Todd Bradley told Reuters in an interview he intends to lead any standalone company created, and expects it to be a full-fledged computer maker spanning tablets, ultra-thin and all-in-one PCs.

“Tablet computing is a segment of the market that’s relevant, absolutely,” he said, without elaborating. He said a spinoff of the Personal Systems Group will bring the “best value” to HP shareholders for taxation and other reasons.

“My intention would be to lead it through this transaction … and if it’s a standalone public company, to lead that.”

Selling the PC division to a rival such as Taiwan’s Acer Inc, which acquired computer maker Gateway in 2007, or to China’s Lenovo Group Ltd, which bought IBM’s PC division in 2004, is not a desirable alternative, Bradley said.

“I would just say that the numbers don’t support that that strategy works,” he said, citing Acer reporting its first-ever quarterly loss last week.

HP has struggled in the PC market — a high-revenue but low-margin business — as popular devices such as Apple’s iPadlure consumers away.

Bradley is on a trip to China, Taiwan and South Korea to meet with employees, suppliers, government officials and media to convince them that HP’s PC business will remain robust and committed to Asian markets.

“China’s obviously a critically important market for HP as well as PSG,” he said.

SUPPLIERS, DON’T FRET

Bradley said HP will increase investments in Shanghai, and over the next three years expand its Shanghai manufacturing base, consolidate six employee sites into one campus, and make Shanghai a regional headquarters in China for the PSG.

“Regardless of what happens, we’re the largest PC company in the world. We need everybody energized, and while this isn’t business as usual, we need people to go out and sell products every day,” Bradley said.

Suppliers to HP PCs will remain largely intact, although the company may renegotiate and redefine the relationships.

“Unwinding the integration that’s taken place within HP will be enormous amounts of work and effort, justified by the return we think we’ll be able to provide to our shareholders.”

Nevertheless, he said, “we will be one of, if not the largest, customers of all of our major suppliers, be it Samsung to LG to Microsoft to Intel.”

The Palo Alto, California-based company is now exploring options for its WebOS software, which it acquired through the acquisition of Palm, of which Bradley is a former chief executive.

Bradley has said that a number of companies had expressed interest in possibly using WebOS as an operating system, but he gave no further details on Tuesday, saying that he is not in China to announce or even negotiate anything regarding WebOS.

Acer Ultrabook pushing for September launch, says paper [Aug 31, 2011]

Acer reportedly is aiming to launch its Ultrabook in September to compete against Asustek’s UX21, which is also set to appear in the month, and has been pushing its development schedule; however, because the Ultrabook has not yet entered mass production, the plan may still be changed, according to a Chinese-language Commercial Timesreport.

An Acer executive also pointed out that the company has already revised the internal design of its Ultrabook twice and the company will only launch 13-inch models initially, the paper added.

Tablet PC fever is already cooling down, says Acer chairman [Aug 25, 2011]

Acer chairman JT Wang, commenting on tablet PC’s impact on the notebook industry, pointed out that tablet PC fever is already starting to cool down and consumers are also being attracted by notebooks again with Intel’s Ultrabooks and Microsoft’s Windows 8 the major attractions.

Acer is already set to launch an Ultrabook in September with a price as low as US$799, noted Wang adding that Acer has performed surveys and discovered that consumers have a high interest in Ultrabooks.

Some players in the PC industry agree with Wang’s prediction and pointed out that tablet PCs are mainly marketed for entertainment purposes, different from notebooks, which are also tools for work and learning. Therefore, once the tablet PC market reaches saturation, consumers’ motivation to replace tablet PCs will be a lot lower than for notebooks, causing tablet PC sales to stagnate once volumes reach a certain level.

In addition to Acer and Asustek Computer, which plan to launch Ultrabooks in September, Dell, Toshiba, Lenovo and Hewlett-Packard (HP) are all set to launch models in the fourth quarter of 2011 or the first quarter of 2012. Taiwan-based makers of components such as batteries, hinges and chassis have also started small volume pilot production, and are set to start mass shipments in the fourth quarter.

Acer president Jim Wong pointed out that although Ultrabooks will only account for a small portion of notebook shipments in 2011, the percentage is expected to reach 25-35% in 2012, a number close to Intel’s prediction of 40% by the end of 2012.

As for Windows 8, Wang believes that the operating system will contribute a stronger sales boost to notebooks than tablet PCs and will also benefit brand vendors during the back-to-school season in 2012 as the operating system’s launch date will be close to that period.

Ultrabooks and tablet PCs are short-term fads, says Acer founder [Aug 5, 2011]

Acer founder Stan Shihhas commented that the fads for ultrabooks and tablet PCs are both short-term phenomena and urged companies in the notebook supply chain to come out with more value-added products through innovation.

Shih added that Apple achieved success with iPad through its outside-the-box thinking, which is an attitude that all notebook players should learn.

Commenting on Apple bringing tablet PC and smartphone products into the PC market to compete with PC players and creating a great impact on PC demand, Shih pointed out that PCs are the base of the IT industry and tablet PCs are also developed from the base; therefore, in the future, products will still need to go through the PC platform to create even more add-on value.

As for whether Acer’s upcoming 7-inch tablet PC, which is priced less than NT$10,000 (US$345), will stir up price competition within the tablet PC industry, Shih pointed out that consumers want products with low price and convenience, and these are pressures that each player will need to face. Currently, the competition within the tablet PC market is still on track for positive development.

Acer founder optimistic about the new transition of the company [July 29, 2011]

Acer founder Stan Shih, commenting on market watchers’ concerns that the company’s purchase of iGware is overpriced, at an exhibition on July 28, pointed out that software is priceless and he believes the acquisition will give Acer a strong base to transition.

With tablet PCs having strongly impacted the traditional notebook industry, Shih pointed out that Taiwan players, which in the past only focused on developing hardware, and so have no environment to develop software, are all facing the key moment for transition.

Shih pointed out that the acquisition is a good chance for Acer, since the company is currently in the middle of a great transition and possession of world-class technologies is a must. Through the acquisition, Acer will be able to acquire a foundation and can start strengthening it to help it become world-class. This is the key motivation for the acquisition. As for concerns about overpricing, Shih only noted that everybody has a different point of view.

As for rumors that Acer’s ex-CEO Gianfranco Lanci may join Korea-based PC vendor Samsung, Shih, on July 26, pointed out that changing jobs is an usual event in the IT industry and market watchers should put too much focus on the information.

Ultrabooks may push down mainstream notebook prices [Aug 30, 2011]

As several first-tier notebook vendors are set launch sub-US$1,000 Ultrabook models in the near future, sources from channel retailers believe the appearance of Ultrabooks is likely to push vendors to reduce prices for their mainstream consumer notebooks.

Currently, notebook models that adopt ultra-thin designs are mostly high-end models with ASPs of NT$35,000 (US$1,206), a gap of about 40% compared to the ASP of mainstream notebooks.

Since consumers are likely to compare the specifications and price of notebook vendors’ Ultrabook and mainstream notebook models to make their purchasing choice, while some players such as Acer are set to launch Ultrabooks with a price as low as US$799, or Asustek Computer US$899, a range similar to that of the mainstream notebooks; therefore, the vendors may need to reduce prices of their mainstream notebooks in order to successfully digest inventory, the sources explained.

Digitimes Insight: Ultrabook key lies in penetration of ULV CPUs in mainstream notebook market [Aug 18, 2011]

Facing tablet PCs’ assault and Apple MacBook Air’s strong performance, Intel and notebook supply chain players have been pushing Ultrabook products aggressively, hoping to re-boost shipment growth of the notebook industry, and Intel is hoping its cooperation with the notebook ecosystem will increase the company’s competitiveness against Apple, according to Joanne Chien, senior analyst of Digitimes Research.

For notebook brand vendors, Ultrabooks will become a key product to defend against tablet PCs and Apple’s expansion in the IT market; however, if Intel intends to develop Ultrabooks with a similar business direction as MacBook Air, the company will end up failingbecause of high costs and uncoordinated business models, and the company will also miss the important chance to further develop into ultra-thin notebooks before ARM-based Windows 8 notebooks appear in the market.

Therefore, Ultrabook’s target segment should be the traditional notebook marketand not the niche ultra-thin notebook market, Chien noted.

Chien noted that the ultra-thin notebook market with products such as MacBook Air, limited by product cost and business model, is unlikely to become the major battlefield for the brand vendors’ Ultrabooks, but the 14- to 15-inch mainstream notebook markets are expected to see demand recover because of the adoption of Ultrabook’s design elements such as thin and light physical shapes, longer battery times, and faster boot times.

Chien added that allowing ultra low voltage (ULV) processors to penetrate into the mainstream notebook market would generate Intel more positives, compared to limiting them to the ultra-thin notebook market. The action would also help Intel to create a beneficial lineup to prevent ARM group from cutting into the notebook market; however, such a move will require Intel to compromise on its ULV CPU pricing.

First real chances for Marvell on the tablet and smartphone fronts

especially because: Kinoma is now the marvellous software owned by Marvell  [Feb 15, 2011]

Update [Aug 21, 2012]ZTE’s U880 is based on Marvell’s then market leading PXA920 single chip SoC, and was introduced a year ago at a list price of ¥1499 – US$235 but the street price came down to ¥958 – US$150 in October and now it is as low as ¥699 – US$110 [Aug 21, 2012], actually on Amazon in China (see: http://detail.zol.com.cn/cell_phone/index284242.shtml). ZTE achieved U880 sales of more than 3 million by May 15, 2012 by which it was the star TD smartphone as per 中国移动将推全频段TD终端 普及HSUPA report from Communications World Network.
End of update

Earlier updates: – Marvell Technology Group Hones Edge [Seeking Alpha, Jan 19, 2012]

For investors the last few years with Marvell have been tough. The stock pays no dividend. After splitting in 2004 and again in 2006, the stock price entered 2007 at well over $20 per share. At the 2008 bottom it hit a low around $4.48. Today it ended sharply up at $15.12 and represents a market capitalization of $8.8 billion.

These stock price gyrations exaggerated Marvell’s changes in revenues and net income. Total 2006 (fiscal 2007) revenue was $2.24 billion, with slightly negative net income. Revenues for 2010 (fiscal year 2011, ending January 29) were up to $3.6 billion, with net income hitting $904 million. This fiscal year 2012 revenues are trending towards $3.45 billion, but with just $690 million net income.

Meanwhile the main good news has been the rapid ramping of sales of Marvell-processor based smartphones in China. Marvell’s chips not only include the processor, but most of the functions needed to run a smartphone (graphics, cellular modem, wi-fi, bluetooth). Thus while brand-happy Chinese are dying (almost literally) to get iPhones, the middle-class masses are buying Android based smartphones that run on a new high-speed, invented-in-China protocol, TD. The ramp in revenue from this in calendar 2012 will be substantial, and the baseline should be noted in the Q4 report due in early March.

Which brings us back to CES (and leaves out Marvell’s leading enterprise-grade Wi-Fi and wired internet switch chips). I can only hit highlights, so many products were introduced.

Foremost, Google (GOOG) chose Marvell’s ARMADA 1500 HD Media System-on-Chip (SoC) for the next generation of Google TV. While there is no guarantee that Google TV will become a mass market product, it does much to validate the hundreds of millions of dollars Marvell has invested in research and development for ARMADA and related technologies. ARMADA is ARM-based and contains many of the same technologies used with smartphones and tablets. Google has worked closely with NVIDIA (NVDA), Qualcomm (QCOM) and other ARM-based chip designers; this is a clear sign Marvell is also in the inner circle. The ARMADA chip series has been adopted by OEMs for a wide range of consumer and business appliance applications. See also ARMADA and PXA application processors.

Plug computers are a Marvell invention: inexpensive, small but powerful computers that plug directly into electric sockets and can act as local servers. SMILE plugs are designed to connect a classroom of up to 60 students and complement the One Laptop per Child program and Marvell ARMADA based low cost, low power tablet computers. This is mainly for developing nations, but given funding shortages should be considered by U.S. schools as well.

In storage, much has been said about replacing hard drives with SSDs, and PCs with Flash-based tablets. Change has come slowly. Marvell already leads in SSD controller chips. Now it introduced a chip that attached through PCIe, an existing, faster port than the standard SATA disk port. Everyone agrees this will be popular. Alternately another chip allows for an SSD and hard drive to function together better, to lower response times while keeping bulk storage costs low.

Consumer home connectivity and automation were addressed by several products. New models of Avastar wireless chips make it easier for all sorts of devices to connect, including Internet phones and video surveillance. Lighting with LEDs was specifically addressed with new, automation-ready chips. The Smart Energy Platform, a combination of a wireless microcontroller and management software, is aimed at lowering price points for energy-conscious appliances in the home.

Except for Google, OEMs will make their own announcements as branded products become available this year.

I will wait on management’s Q4 fiscal 2012 in early March before trying to estimate directionality for the new year. Technology is rapidly evolving. More individual devices mean more information needs to be stored in the cloud, requiring in turn more HDD storage and connectivity. All these trends favor Marvell, but competitors will be gunning for the same revenue and profits.

What do I think would most enhance shareholder value? A dividend. As of last quarter Marvell had 2.4 billion in cash, no debt, and cash flow of $262 million. Marvell has used its cash mainly for stock buy backs, and is likely to continue to do so.

China Outstrips U.S. in Smartphone Market [Nov 23, 2011]

Deliveries of smart phones to operators and retailers in China grew 58% in the third quarter from the previous quarter to 24 million units. That surpassed 23 million units delivered to the U.S. market, down 7% from the previous quarter …

Nokia Corp. had the largest share of China’s smartphone market in the third quarter, with 29%. … Samsung Electronics Co. Ltd. is chasing hard with 18% of the Chinese market …

Strategy Analytics estimates that 57% of the world’s handsets were manufactured in China in 2010. … two of Nokia’s eight production facilities are based in China and the company said China is also one of its bigger suppliers of mobile handset components. …

TD-SCDMA: US$3B into the network (by the end of 2012) and 6 million phones procured (just in October) [Oct 18, 2011]: meaning a mature TD-SCDMA market (finally) with 627 million potential customers of which only 6.4% are on the 3G
Marvell, Lenovo and China Mobile Team Up To Drive Mass Market Adoption of China’s 3G TD-SCDMA Smartphones [Oct 26, 2011]

Marvell (NASDAQ: MRVL), a worldwide leader in integrated silicon solutions, today announced the launch of Lenovo’s LePhone A66t, a 3.5-inch high-definition screen smartphone customized for China Mobile’s 3G TD-SCDMA market and priced in the 1,000 RMB range [US$ 157]. The LePhone A66t is powered by the Marvell® PXA918 [@624MHz] platform, the first commercially available single-chip solution that integrates a high-performance, low-power application processor with an advanced multimode modem. Marvell’s advanced low-power TD single-chip solution is designed to enable exceptional user experience for watching mobile TV, navigation, video conferencing, social networking, and other popular mobile applications. It also features the Marvell Avastar™ 88W8787 wireless solution, which is Bluetooth 3.0 and FM enabled, offering exceptional Wi-Fi range with beamforming technology, robust 802.11n connectivity and crystal clear audio quality.

“As the second largest provider of PCs and other consumer electronics worldwide, Lenovo is committed to drive the connected lifestyle for billions of consumers around the world. Our LePhone A66t is an ideal mobile device that enables consumers easy access to social networking, e-commerce, gaming and mobile TV at an affordable price of around 1,000 RMB,” said Feng Xing, vice president and general manager of business operation at Lenovo. “Our partner Marvell is one of the top semiconductor leaders that has delivered the most advanced and competitive China 3G TD-SCDMA solution. I believe the introduction of the Lenovo LePhone A66t is a game-changer for the mass adoption of China Mobile’s 3G smartphones.”

“We’re happy to see the successful collaboration between Marvell and Lenovo for creating a world-class China 3G smartphone,” said Xing Hongtao, Deputy General Manager of Marketing, China Mobile Beijing Branch. “China Mobile is very excited on the fast adoption of the advanced 1,000 RMB smartphones and we’re confident of the explosive smartphone growth in the years to come.”

Lenovo’s LePhone A66t smartphone will provide consumers a high quality CMMB digital TV experience, along with best-in-class Wi-Fi connectivity, all delivered in a sleek and sophisticated design form factor. Powered by the Marvell PXA918, Lenovo’s LePhone A66t also features Android 2.2 Operating System, Mobile Hotspot capability, a 3.5 inch high-definition screen with multi-touch support, Marvell RF808 RF transceiver and a Marvell PM8607 integrated audio and power management solution.

For more information about the Marvell PXA918, please visit www.marvell.com/communication-processors/pxa918/ or contact a sales representative.

Samsung Selects Marvell’s Industry Leading China 3G TD-SCDMA Solution for Its New S5820 Android Smartphone with Breakthrough Social-Networking, Mobile Gaming and Mobile TV Capabilities [Oct 19, 2011]

Marvell continues to drive mass market adoption of China’s 3G TD-SCDMA standard and affirms the leadership of its PXA920, the industry’s first commercially available single-chip TD-SCDMA solution, and its Avastar 88W8787 wireless solution

… supporting China Mobile’s TD-HSPA (Time Division High-Speed Packet Access) network. It also features the Marvell Avastar™ 88W8787 wireless solution, which is Bluetooth 3.0 and FM enabled, offering exceptional Wi-Fi range with beamforming technology, robust 802.11n connectivity and crystal clear audio quality. The phone is available now through the retail stores of China Mobile, the largest mobile carrier in the world with over 650 million subscribers.

Update: Price of Samsung S5820 [Aug 21, 2012]: 1288 – US$203 (see: http://www.xj1616.com/product-1797.html)
The price leader is the ZTE-T U880 which has similar specification and a street price of ¥699 – US$110  [Aug 21, 2012] as the lowest.on Amazon in China (see: http://detail.zol.com.cn/cell_phone/index284242.shtml).
End of the update

Price of Samsung S5820 [Oct 22, 2011]: ¥1798 – US$282 (see: http://www.xj1616.com/product-1797.html)
[¥2518 – US$395 is shown striked over, so that could be a kind of list price.]
The price leader is the ZTE-T U880 which has similar specification and a street price of ¥958 – US$150 (see: http://detail.zol.com.cn/cell_phone/index284242.shtml). The list price is ¥1499 – US$235, but the W-SCDMA ZTE Blade version is just ¥1280 – US$200 with street price as low as ¥898 – US$141. Keep in mind however that the later has an only 750 DMIPS CPU [ARM1136 @600MHz] while the PXA920 has an 1168 DMIPS CPU [Marvell PJ1 Sheeva @800MHz].)
Marvell Drives New Rollout of TD-SCDMA Smartphones from China Mobile, the World’s Largest Mobile Operator [June 28, 2011] (emphasis is mine)

ZTE Launch Signals New Era of TD-SCDMA Smart Devices in China Powered by Marvell’s Industry-First Single Chipe Solutions

Blade U880, one of ZTE’s flagship smartphones, is powered by the Marvell® PXA920 and features a 3.5 inch WVGA capacitive touchscreen at a resolution of 800 x 480 pixels, delivering exquisite pictures with rich colors and multi-touch. Other features include Android 2.2 support, a TD-SCDMA +WLAN dual wireless Web connection, WLAN-AP wireless routing, CMMB (MBBMS) mobile phone TV, a 5 megapixel auto-focus camera, 720p high-definition video, GPS/AGPS navigation and a 3D graphics processing accelerator.

The TD version of ZTE Blade could be price leader because except the PXA920 SoC the rest of it is based on ZTE’s highest volume smartphone, the W-CDMA-based ZTE Blade.
See: ZTE Achieves 35 Million Handsets Milestone in First Half of 2011 [Aug 9, 2011]

 In 2011, ZTE’s Blade also became one of the world’s top-selling smartphones. Through partnerships with approximately 80 operators globally [see the ZTE Blade in wikipedia for operator branding], ZTE’s Blade is now available in nearly 50 countries and regions. The Blade’s daily sales in China are the nation’s highest for Android smartphones, averaging 16,000 units per day. ZTE has now sold 2.5 million Blade handsets globally and expects to break the five million mark this year.

[This was actually achieved by a big order: ZTE Receives Order for 2 Million ZTE Blade V880 Smartphones from China Unicom [Sept 26, 2011]]

Samsung S5820[-TD-HSDPA] [Samsung product page in Chinese only, Sept 14, 2011, as translated by Google]

Metallic appearance
– Metal body delightful sparkling.

Android ™ 2.3 smart operating system
– Android ™ 2.3 smart operating platform one-upmanship.

Social applications pre-installed
– Pre-happy network, all network, flying letters, Sina microblogging, social network are collected, and enjoy social fun.

WLAN high-speed Internet
– WLAN high-speed Internet access speed challenge.

CMMB mobile TV and mobile data services
– CMMB mobile TV and mobile data services, rich applications endless.

Marvell Showcases 16 China Mobile TD-SCDMA Smartphones from Leading Global OEMs at PT/EXPO Comm China 2011 [Sept 25, 2011]

Product display at PT/EXPO highlights ongoing collaboration between Marvell, China Mobile and leading global OEMs to deliver affordable, advanced China’s 3G TD-SCDMA smartphones to the world’s largest mobile market

Marvell (Nasdaq: MRVL), a worldwide leader in integrated silicon solutions, today announced it will showcase a full suite of China’s 3G TD-SCDMA solutions at PT/EXPO Comm China 2011 in booth 1B005. The lineup includes smartphones, tablets and mobile hotspots powered by Marvell’s PXA920 single-chip product line and the PXA1202, the industry’s first Downlink Dual Carrier (DLDC) TD-HSPA+modem. Considered the most influential exhibition for China’s burgeoning communications industry, PT/EXPO Comm China 2011 takes place September 26 to 30 in Beijing. Marvell will demonstrate a total of 16 TD smart devices that feature its single-chip solutions from leading global OEMs: ASUS, Hisense, Huawei, Guangdong Mobile, Motorola, RIM, Samsung, Sharp, Sony Ericsson, Yulong and ZTE.

“We’re very pleased to see the great progress we’ve made with our vision of the connected lifestyle for everyone in the world. I believe the breakthrough in our China’s 3G TD-SCDMA technology with the largest mobile carrier, China Mobile, in the largest mobile market, is a major milestone and testimony to our vision. When China Mobile began its mission to build an advanced and affordable smartphone more than four years ago, Marvell was the major silicon partner who committed to the program because we believed in China Mobile’s vision and bright future of this great opportunity,” said Weili Dai, Marvell’s Co-Founder. “I believe Marvell has enabled a quantum leap in the development and adoption of the TD-SCDMA standard. For example, Marvell is leading the way to a new era of seamless global connectivity for the masses with the industry’s first single chip 3G/4G modem with support for FDD-LTE, TDD-LTE, HSPA+, TD-SDMA, and EDGE. Now through our work with other industry leaders, billions of end users can experience high-performance web browsing, live video, 3D gaming and other popular features on affordable, advanced devices including smartphones, tablets and mobile hot spots. I am very proud and thankful for Marvell’s global team of engineers for their hard work, innovation and dedication to move the industry forward. The products we are showcasing exemplify what can be accomplished with cutting-edge technology – and this is only the beginning of what’s to come with our continued commitment to TD-SCDMA.”

Marvell has partnered with the TD Industry Alliance (TDIA) at the show to demonstrate the rapid adoption and product implementation of TD-SCDMA. With its technological achievements and commitment to innovation, Marvell has been a strong supporter and contributor to the evolution of the TD-SCDMA industry in China. Other government, telecom operators and Marvell partners such as MIIT and China Mobile will also be in attendance, making the event the de facto meeting place for decision-makers in the TD ecosystem.

All of the products to be displayed – ranging from entry-level smart devices to mid-level devices with rich multimedia functions and 3D graphics – feature Marvell’s PXA 920 family of silicon, including:

  • The PXA920 – The industry’s first single-chip TD solution designed for multimedia-centric handsets featuring support for both TD-SCDMA and GSM/EDGE and now shipping in more than 10 devices.
  • The PXA918 – Tailor-made for entry-level smart devices, featuring 55 nm technology, 624 Mhz processors and rich multimedia functions.
  • The PXA920H – Designed for mid- and high-end smart devices featuring 55 nm technology, a 1Ghz processor and support for 720p video and 250mpps 3D graphics.

Marvell will also showcase the industry’s first DLDC TD-HSPA+ Modem PXA1202, a pivotal milestone in advancing China’s TD-SCDMA standard, which can help to achieve 4X data rate increase on TD-SCDMA networks. Featuring 40 nm technology and backwards compatible with previous generations of TD-SCDMA network equipment, the PXA1202 supports DLDC, 64QAM and TS0 enhancement technologies. It is also designed to enable seamless performance with bandwidth-hungry mobile applications and multimedia devices.

Marvell’s PXA920 Family of SoCs

PXA918

PXA920

PXA920H

Target market entry-level smart devices (a lower-cost yet high performance solution for multimedia-centric handsets) multimedia-centric handsets mid- and high-end smart devices (to provide higher performance solution for multimedia-centric handsets)
Silicon technology 55 nm 55 nm 55 nm
Clock frequency 624MHz 806 MHz 1GHz
Dhrystone performance 870 DMIPS 1130 DMIPS 1400 DMIPS
Memory interface LPDDR1 LPDDR1 LPDDR2
3D graphics performance up to 8Mtriangle/s and 150Mpixel/s fill rate up to 10M triangles/s sustained (20M triangles/s peak at 50% cull rate) and 200M pixels/s fill rate up to 12Mtriangle/s sustained and 250Mpixel/s fill rate
Video playback performance D1 at 30 fps for H.264, WMV, MPEG-4, H.263 720p at 30 fps for H.264, WMV, MPEG-4, H.263 720p at 30 fps for H.264, WMV, MPEG-4, H.263
Video capture performance D1 at 24 fps for H.264, WMV, MPEG-4, H.263 D1 at 30 fps for H.264, WMV, MPEG-4, H.263 D1 at 30 fps for H.264, WMV, MPEG-4, H.263

The block diagram for the SoCs is the same as shown by the PXA918 case below (only the above data written into the blocks is different):

the rest is in the: Complete information in PDF: Marvell PXA920 Family of SoCs [Sept 25, 2011]

End of earlier updates

How Marvell is doing after Marvell’s single chip TD-SCDMA solutions beaten (again) by two-chip solutions of Chinese vendors [July 11, 2011] despite High expectations on Marvell’s opportunities with China Mobile [May 28, 2011] as well as Marvell to capitalize on BRIC market with the Moby tablet [Feb 3, 2011]?

All excerpts below are from Marvell Technology Group’s CEO Discusses Q2 2012 Results – Earnings Call Transcript and the related Question-and-Answer Session[Seeking Alpha, Aug 18, 2011]. If no question is present before a statement from a Marvell executive then it is from the presentation part. The order of excerpts is different from that of in the transcripts. Sehat Sutardja is the CEO of the company, while Clyde Hosein is Marvell’s CFO.

First question is, you guys recently — made your first foray into the tablet market. It was — I believe it was a VIZIO Tablet launched through Costco. I was wondering if you can give us any color on kind of what the initial uptake or feedback has been around that device?

Clyde Hosein: It’s still early, Sanjay, you pointed to our first foray. The price point is, we believe, is very attractive. So it’s geared for people who perhaps cater for the higher end ones. And that price has been coming down, and expected to come down in the future, and as we develop more and follow-on products. So initial reaction is very good, but it’s still early. And I don’t think we want to make too much out of it at this early stage in the game, but it’s, I think, price performance in a very good place.

All the relevant information about the VIZIO tablet, as well as VIZIO’s general CE strategy you can find in Innovative entertainment class [Android] tablet from VIZIO plus a unified UX for all cloud based CE devices, from TVs to smartphones [Aug 21, 2011].

Sehat Sutardja: … in our mobile and wireless end market, Q2 revenues increased approximately 18% sequentially and represented approximately 26% of our overall revenues. The sequential increase was driven by growth from our new products such as TD in China, and seasonal growth from our wireless connectivity solutions. We believe the headwinds that faced our mobile and wireless end market in the prior quarters are mostly behind us, and we expect to make solid progress moving forward.

Today, we continue to be the only provider of a single-chip TD smartphone solution. These has resulted in over 20 TD smartphones being deployed both at OEM providers and white box manufacturers with our solutions.

For example, during the last quarter, ZTE announced our 4 new Marvell-based TD devices. In addition, Motorola, Huawei, Samsung, and others are currently deploying TD smartphones based on Marvell’s solutions. We are proud to say that working closely with our customers, we have helped them achieve an unsubsidized price point of $100 for TD smartphone, a first in the industry.

In the coming months, many of these handsets will be deployed in multiple Chinese provinces, both through the carrier and the channel. Our revenues for TD smartphones have roughly doubled in the last quarter, and we expect double-digit sequential growth again in the third quarter.

In addition to TD, business at our largest existing mobile customer [obviously RIM] has stabilized. We expect new 3G handset devices with Marvell solutions, Marvell silicon, to come to the market in the near term, targeting the high-volume segment. Further expanding our customer base during the second half of our fiscal year, we expect to launch multiple Android-based handsets targeted for consumers in Europe, Asia and South America.

… when does, or does RIM become kind of irrelevant in the context of the overall mobile and wireless business?

Clyde Hosein: … Our dependence, however, on any single customer in the mobile space today is much lower than it was at any given period since we bought this business 5 years ago. So as Sehat mentioned earlier, we are ramping up on TD. That’s beginning to do very, very well. Marvell is really acing it on the smartphones part of it. We mentioned earlier, we’ve got price point as low as $100. This is unsubsidized into the channel. We believe that there’s a huge demand for — a huge inflection point for low-cost smartphones, and we believe we’re delivering that in this space. In addition to that, we are on the cusp and inflection of non-TD Android-based smartphones. There’s a couple that we expect to come out, we had said second half of this year, that’s still on track. So you’ll see that probably in the next quarter or 2, you’ll see very [indiscernible]. …

Sehat Sutardja: I think investors should not discount RIM. We continue to work closely with RIM in delivering new solutions. They will make the product to look really, really nice, and better performance as well. So don’t discount that. Don’t discount it at all.

Sehat, what’s kind of the read through on demand and sell-through of either the high-end Android or OMS-based TD phones thus far?

Sehat Sutardja: So as we said, we are the first to work with our customers to deliver $100 TD smartphones. This is unprecedented. Just about a year ago, these phones are [were] selling for about $400 to $500 because they are [were]based on multiple chips in a system and [that] requires a very complex implementation. As the price gets to the $100 price point, the demand actually is increasing rapidly. This is what we expect to see. And we projected this was going to happen, and we’re seeing that. We’re seeing the customer demand is increasing. And also as more and more of these products [are] qualify[ied] by China Mobile to be released into the market, we expect the volume will continue to ramp. So we’re talking about phones there that are not much higher than a low end — I mean, like a high-end feature phone. Maybe even a similar price point, just if you take into account of the touchscreen feature phones. Literally, there’s not much difference in the bill of material to build those higher touchscreen feature phonesbecause these smartphones that we’re delivering. So we are very, very optimistic that more and more — the success of many of these customers will lead to other successes.

I’m kind of curious specific to the TD business. Can you help us quantify what percent of mobile wireless it is today? And as we think about kind of the market opportunity here, where do you think that can go over the next several quarters?

Clyde Hosein: So it’s a small part today. It’s just getting started and we think, as I have indicated, we think it’s a huge opportunity. We aren’t disclosing any, whether it’s TD or anything but specific segments. But it’s a small percent of the total today. And looking forward, a lot will depend on the consumption rates in China. We are opening up — or there is a lot more channels opening up in the next few months, so I expect that to pick up. Especially wide-box channels in each of the provinces that open up with these phones. So that should expect to pick up. Tough to predict. We think it’s a huge opportunity. There is several hundred million people who at the right price point, a significant percent of them should convert. But I think the next few months would tell us better. So we firmly believe and continue to believe that these smartphones at this price range, again $100 at the low end unsubsidized, we’re already there within 2 quarters of introduction of the technology. We think that’s an inflection point for demand. It’s hard to predict what the next 2 quarter’s demand is going to be. They sell-through today, some of our revenues for the quarter is already on a sell-through basis, granted some of it is in channel. But some of it is already sell-through. People have phones already, users, and we expect that to accelerate. But the penetration rate since the new market, new country, new set of users, difficult to predict near term. We are bullish in the long haul.

Sehat Sutardja: But in the long run, I think every time you ask for a short-term, a quarter, 2 quarters, I consider short-term projection. That’s very hard to project ramps. They can be — where the slope could be 10% slope, or 5% slope, or 15% slope. So those kind of projection is extremely dangerous to provide. But what we believe internally is that when you — when China Mobile has 500 million plus — or 550 to 600 million subscribers, okay, we can model whether it’s, okay, 2 to 3 years from now whether the 30% of it will be TD smartphones. Is that going to be 40%, is it going to be 30%? Now this is a kind of model that we can play. Of course everything is based on the price elasticity. So if the price goes to $100, how many percent do we expect this thing to be maturing at. When price goes to $70, what does it mean? And I don’t see any reason why this thing cannot be $70 in a year or so from now, for example. So we are bullish in the long run. Just a short term look, it’s very hard to say exactly what that slope begins to look like.

Let me just ask you about the TD LTE transition. … Will those be phones or will those be downloads [dongles]? And as you speak to China Mobile, how do they balance the transition to TD LTE with the extensive investments they’ve made in TD-SCDMA?

Sehat Sutardja: Well, yes, TD LTEs, as you should expect in any new deployment, the dongle will definitely will go in first. It’s easier to qualify the dongle. But the biggest volume, obviously, is not in dongle, the biggest volumes will be the handset. And when you go to the handset, more likely you will go into the highest end, highest price, the high-priced handset. So that will be, more likely, the phase-in of the TD LTE. So nothing surprising. So, okay, the key is, okay, over time, is to build lower price higher integration single-chip solutions to get to the mass-market TD LTE. So don’t expect that to happen, the volume to ramp up on the mass-market any time in next year. But to get a TD, as you say, China Mobile is really investing huge amount of dollars and resources in the infrastructure, base stations, several hundred — more than 200,000 base stations deployed with TD-SCDMA. So those are the ones that most likely to be ramped up first, okay, and then follow a certain selected cities — I mean, maybe not in every part of city, but like certain, in maybe the downtown area, where maybe they will start deploying a trial TD LTE deployment to test the system. Well, maybe, I don’t know, a year or so before they were all moved — before they all spread it out to the more major market. So we have nothing surprising. These things will have its own course. The key for us is to think we work very close with China Mobile, also, to make sure they have our specifications for the TD LTE is what they need.

… can you guys review where you stand with … not TD LTE, but just traditional LTE?

Sehat Sutardja: … So related to FDD, LTE, or TDD LTE, we have already sample[d] FDD LTE, so we talked last quarter. So what we’re talking about the TDD, is that the LTE and the TDD, is we’re we have to wait for that sample at the end of this year, specifically related to the requirements that China Mobile are putting into the marketplace.

New high-tech and direct investment relationships between the US and China?

With more than $3.2 trillion in foreign currency reserves, out of which $1.17 trillion is in US Treasury bonds while also heavily constrained to have just a mere 0.1 percent of the total foreign direct investment in the U.S., China is extremely worried about the safety of the country’s dollar assets. China’s state-run Xinhua News Agency made it quite clear in Beijing’s first official response to the Standard & Poor’s decision to downgrade the U.S. credit rating that:
After historic downgrade, U.S. must address its chronic debt problems [Xinhua, Aug 6, 2011]

The days when the debt-ridden Uncle Sam could leisurely squander unlimited overseas borrowing appeared to be numbered as its triple A-credit rating was slashed by Standard & Poor’s (S&P) for the first time on Friday.

Though the U.S. Treasury promptly challenged the unprecedented downgrade, many outside the United States believe the credit rating cut is an overdue bill that America has to pay for its own debt addition and the short-sighted political wrangling in Washington.

Dagong Global, a fledgling Chinese rating agency, degraded the U.S. treasury bonds late last year, yet its move was met then with a sense of arrogance and cynicism from some Western commentators. Now S&P has proved what its Chinese counterpart has done is nothing but telling the global investors the ugly truth.

China, the largest creditor of the world’s sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China’s dollar assets.

To cure its addiction to debts, the United States has to reestablish the common sense principle that one should live within its means.

International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currencymay also be an option to avert a catastrophe caused by any single country.

For centuries, it was the exuberant energy and innovation that has sustained America’s role in the world and maintained investors’ confidence in dollar assets. But now, mounting debts and ridiculous political wrestling in Washington have damaged America’s image abroad.

All Americans, both beltway politicians and those on Main Street, have to do some serious soul-searching to bring their country back from a potential financial abyss.

The way out of the uncertainty about the safety of dollar assets has clearly been indicated by Xinhua journalist Deng Yushan today:
Better open the U.S. door wider than scapegoat RMB [Aug 19, 2011]

With U.S. Vice President Joe Biden in China, the yuan has once again become fodder for the headlines of some Western newspapers amid pretty serious reports that the guest from Washington would press Beijing to allow the Chinese currency to appreciate more rapidly.

Any speculation about the alleged undervaluation of the yuan is indeed wide of the mark. In the past decade, so much has been said about the Chinese currency, also known as the renminbi or RMB, in the West, and it is always like beating a dead horse.

Simply put, the exchange rate has never been the real cause of the huge U.S. trade deficit with China.

For starters, the Chinese currency has already appreciated more than 20 percent against the U.S. dollar since China unpegged it from the greenback in the 2005 reform of its exchange rate regime. In the first half of this year, it gained 2.33 percent.

The U.S. trade deficit with China, meanwhile, has persisted. According to Chinese statistics, it was about 114 billion U.S. dollars in 2005, but it increased to over 180 billion dollars in 2010.

Washington and Beijing may quarrel about the “real figures” of the trade deficits by using different calculations. But the plain fact is that large U.S. trade deficits with China continue to exist even as the Chinese currency has appreciated against the U.S. dollar significantly in the past six years.

Meanwhile, China has been making serious efforts to create a more flexible exchange rate regime in a gradual way, taking into account both internal realities and external conditions. History has repeatedly demonstrated that radical exchange rate fluctuations are a recipe for financial and economic calamities.

As the second largest economy next only to the United States and an important powerhouse for global economic growth, China has to maintain financial stability and economic soundness. A volatile Chinese economy is no good news for the United States and the broader world.

Rather than misplaced blame and charged rhetoric, sensible and viable options are on the table for U.S. policymakers to wipe away much of the red ink and catch hold of the elusive balance. Ready ones include Washington relaxing its restrictions on high-tech exports to China and Uncle Sam opening his door wider to Chinese investors.

Washington has its due security concerns while selling products of super-sensitive technologies. However, as U.S. Ambassador to China Gary Locke said last year when he was commerce secretary, some of the export regulations “make no sense” as many items on the control list have already been readily available from companies around the rest of the world.

While reshaping its unnecessarily tight export policy toward China, the United States can also take off its behind-the-times colored glasses and take in more Chinese direct investment so as to better redress the general imbalance of the economic and trade exchangesbetween the two giants.

Chinese investment fully deserves fair treatment. A recent joint study by the New York-based Asia Society and the Washington-based Woodrow Wilson International Center for Scholars points out that China now accounts for a mere 0.1 percent of the total foreign direct investment in the U.S., while Chinese firms in the U.S. are estimated to have created more than 10,000 local jobs.

As many from both sides of the Pacific Ocean have appealed over and again, Chinese investment in the U.S. should be encouraged, and the U.S. process of screening investment for national security concerns should be insulated from political interference.

China’s FDI to help US growth [China Daily US Edition, May 5, 2011]

WASHINGTON – Political fear mongering about Chinese direct investment in the United States could cause the US to miss out on employment and investment opportunities, American scholars said.

The warning was sent by scholars on Wednesday in the form of a recent study on Chinese foreign direct investment (FDI) in the US. Entitled An American Open Door? – Maximizing the Benefits of Chinese Foreign Direct Investment, the study shows that increases in China’s direct investment in the US in the coming decade will help with economic growth and job creation in the country.

Over the past two years, the value of Chinese FDI assets in the US has grown 130 percent annually, said Daniel Rosen, an economist and one of the two authors of the study.

He and economist Thilo Hanemann estimate that in 2010 alone, Chinese investments in the US amounted to $5 billion.

By combining data from professional databases, media reports and industry contacts as well as documenting real-time Chinese investments, they show that Chinese firms have opened businesses in at least 35 states and created some 10,000 jobs.

Profitability is the essential motive behind the Chinese investment, Rosen said, adding that Chinese firms are likely to “place some $1 trillion to $2 trillion in direct investments around the world over the coming decade”.

Stapleton Roy, former US ambassador to China, said that the study offers “informed basis for potential controversy that tends to rise as China shifts its global posture from being a net absorber of FDI to a major provider of FDI, a trend that has begun to emerge in the last few years“.

The study has “brought together the best factual bases for understanding both positive aspects of Chinese FDI in the US and potential risks that exist with FDI in advanced countries”, said Roy, who is director of Kissinger Institute on China and the United States at the Woodrow Wilson International Center for Scholars, which co-sponsored the study with the Asia Society Center on US-China Relations.

The two authors addressed the national security issue that has aroused outcries particularly in the US Congress, saying that the US should continue its screening through the Committee on Foreign Investment in the US (CFIUS), a group headed by the Treasury department with members coming from defense and intelligence departments.

While Rosen defended CFIUS’ role, he did admit that Huawei’s continued failures in major mergers and acquisitions in the US along with other much publicized cases has “already planted seeds of mistrust among Chinese entrepreneurs and Chinese firms that are considering operating in the US or Germany or Canada and someplace else“.

The flow of investment from China to the US constitutes “one of the fundamental changes in US-China relations”, said Orville Schell, director of the Asia Society Center on US-China Relations.

Schell said the US “will suffer” if it cannot find ways to “be as open to Chinese capital as we are to other firms”, even with national security issues considered.

Background(from Xinhua or Xinhuanet sources):

China increases U.S. Treasury holdings in June [Aug 17, 2011]

US Treasury holdings rise in June

(Photo: China Daily)

BEIJING, Aug. 17 (Xinhuanet) — China purchased another $5.7 billion of US Treasuries in June, an investment described by one expert as “the best of a bad bunch”, amid growing calls for the country to diversify its foreign reserves.

June was the third consecutive month that China increased its holdings in US Treasury bonds, despite concerns over the safety of dollar assets.

The new purchase boosted China’s holdings to $1.17 trillion as of the end of June, a period when global investors were worried about the outcome of the US debt ceiling debate.

China added to its holdings by $7.6 billion in April and $7.3 billion in May, according to data from the US Department of the Treasury.

As the largest creditor of the US, China has been closely watched for its investments in dollar assets, especially after Standard & Poor’s downgraded the credit rating of the US.

Japan, the second-largest holder of US Treasuries, reduced its holdings by $1.4 billion in June, leaving them at $911 billion. Britain boosted its holdings from May’s $346.8 billion to $349.5 billion in June.

Yuan Gangming, a researcher at the Center for China in the World Economy at Tsinghua University, said the purchasing of US Treasuries reflects China’s limited choice regarding its $3.2 trillion foreign exchange reserve.

“Increasing the holdings despite the slow economic recovery in the US and signs of looming debt problems is ‘choosing the best of a bad bunch’, meaning there are no better places for China to put such a large amount of money,” Yuan said.

Yuan believes that activity in US Treasuries by Japan and Britain has more to do with their own domestic situation rather than the actual value of the bonds.

Although the US economy has been overshadowed by the rating downgrade, the country’s fundamentals in the long term remain strong, Yuan said.

Ken Peng, senior China economist with BNP Paribas, said increasing the holdings in US bonds is not too significant.

“What really matters is the proportion of China’s newly increased US dollar assets (including Treasury bonds) to the newly increased foreign exchange reserves,” he said. “Though there is no way to get the figure, we estimate that the proportion is gradually dropping.”

He said that the key method to address China’s foreign reserves dilemma is to achieve a trade balance.

“If the country’s foreign exchange reserves continue to grow at a fast pace, there is little chance of getting out of the cycle,” Peng said. “You have to do something with the accumulated dollars.”

China’s trade surplus surged to $31.5 billion in July, the highest level in more than two years, as exports rose to a record level, the General Administration of Customs said last week.

Analysts said that while there is not much that China can do in the short term with its foreign reserves, it should nonetheless try to diversify.

“Gold probably tops the list, besides euro-denominated assets and debt of the emerging markets,” said Yao Wei, China economist with Societe Generale in Hong Kong.

“The share of gold in China’s foreign exchange reserves is significantly lower than other countries. The pace of diversification will be subject to the situation in global financial markets and China’s own currency reform.”

Zhu Zhiqun, a professor of political science and international relations at Bucknell University in Pennsylvania, said China should be “more creative” and diversify investments.

“Chinese companies can help failing US businesses through acquisitions and purchases. The US Congress is likely to block Chinese investment in key sectors related to US national security, such as the oil industry, but it is not opposed to Chinese investment in less sensitive businesses,” Zhu said.

(Source: China Daily)

China to allow faster currency appreciation: analysts [Aug 11, 2011]

BEIJING, Aug. 11 (Xinhuanet) — China, backed up by rising exports, is expected to allow a faster appreciation of its currency, which also enables the country to stave off hot money inflows and combat inflation.

The People’s Bank of China, the central bank, set the official medium trading price at 6.4167 yuan against one U.S. dollar Wednesday, marking a new record high of the Chinese currency trading the greenback since Beijing embarked on the yuan’s revaluation reform in July 2005.

Wednesday’s value surge marks a steep rise of 168 basic points from Tuesday’s 6.4335 yuan trading one U.S. dollar. So far this year, China’s currency has appreciated by about 3 percent.

Most Chinese experts predict that Beijing would allow an appreciation of the yuan against the greenback at a magnitude higher than the 5 percent last year.

Foreign trade surplus for July hit $31.5 billion, the highest in two and a half years, thanks to higher-than-expected export growth, particularly to the European Union and emerging economies like Indonesia, Argentina, Brazil and India.

The gains in both exports and imports in July – hitting $318 billion according to the General Administration of Customs – tell that China’s economy remains on a solid track, which will give the authorities in Beijing replenished confidence to raise the value of the yuan, experts say.

The $31.5 billion monthly trade surplus is the highest since February 2009 and has come at a time when the world’s second largest economy faces uncertain outside demand, typically from sputtering economic engines in the U.S and Japan.

As a countermeasure to independent rating agency, the Standard & Poor’s, downgrading U.S. government credit from the top-notch AAA to AA+ for the first time in history, the Federal Reserve came out Tuesday with a surprise policy statement, asserting America will extend its extremely low interest rates through 2013.

The U.S. central bank hinted it could also launch another round of “quantitative easing” by purchasing more government bonds.

Chinese analysts believe that if QE3 is started, a considerable proportion of the generated credit will flow to China, like QE2, attracted by China’s solid growth and higher interest rates.

To thwart the flooding-in of the hot money, Beijing will be forced to increase the value of the yuan, experts say. China’s central bank has amassed a total of more than $3.2 trillion in foreign currency reserves by June this year. The accelerated hot money inflows have ratcheted up yuan supplies to the market as the central bank has to buy them with local currencies.

China faces rising pressure of inflation as inflation has kept building up this year. It reached a 37-month high of 6.5 percent in July.

(Source: People’s Daily Online)

Chinese investment, a real threat to U.S. national security? [Aug 27, 2010]

BEIJING, Aug. 27 (Xinhua) — The United States has repeatedly blocked investment from Chinese companies on national security grounds, a protectionist move that will only harm its own interests, analysts say.

Eight U.S. congressmen recently asked the Obama administration to scrutinize a deal between Chinese telecom equipment giant Huawei and the American operator Sprint Nextelon national security grounds.

It was not the first time Huawei’s attempts to break into the U.S. market have been stymied. Earlier its buyout attempt of 3Com was summarily dismissed by the U.S. government.

Citing national security concerns again, a bipartisan group of 50 lawmakers in July requested that the government investigate an investment project of China’s Anshan Iron and Steel Group(Ansteel), China’s fourth largest steelmaker, which plans to establish a joint rebar venture with a U.S. partner in Mississippi.

“It is inappropriate for some U.S. lawmakers to label regular business behavior as a move that threatens national security,” Yao Jian, a spokesman for the Ministry of Commerce, recently said about Ansteel’s investment plan.

“I hope the United States can create a better investment environment for Chinese enterprises,” he said.

Chinese analysts said the actions were sheer protectionism, adding that national security concerns is only a lame excuse by U.S. authorities, whose true intention is to protect the interests of domestic enterprises and industries.

Moreover, standing up to China’s allegedly unfair trade practices can easily earn the congressmen much needed political chips in the upcoming mid-term election in November, the analysts said.

The setback that Huawei and Ansteel suffered is only the tip of the iceberg. Actually, blocking investment from Chinese companies in the name of national security has morphed into a knee-jerk reaction that could only harm America’s own interests.

Emcore Corporation, a U.S. fiber optics producer, announced in late June that it has abandoned a joint venture in partnership with China’s Tangshan Caofeidian Investment Corporationbecause the Committee on Foreign Investment in the United States “has certain regulatory concerns about the transaction.”

Another State-owned enterprise, Northwest Nonferrous International Investment Company, was also forced to withdraw a purchase of 51 percent stake in Firstgold Corp., a gold mining firm located near a U.S. military base in Nevada.

“Some U.S. politicians still see China through tinted glasses,” said Chen Fengying, a senior strategist with the China Institute of Contemporary International Relations.

In their eyes, China is still a planned economy under a totalitarian regime, she said.

“As a result, they begin to politicize Chinese investment and make it become an issue of security even before Chinese companies carry out any business activities there,” she said, “It is not fair for the Chinese enterprises,” whose regular business behavior has been constantly mischaracterized.

Chen said that compared with the difficulties Chinese firms face in the United States, it is much easier for American companies to invest in China.

According to Ministry of Commerce officials, U.S. companies operating in China report annual profits of at least 80 billion U.S. dollars.

By last June, the total number of U.S. investment projects in China had exceeded 57,000 and the value of accumulated U.S. investment in China reached 61 billion dollars.

According to the American Chamber of Commerce in China’s 2009 White Paper, about 74 percent of American businesses in China made profits and 91 percent chose to stay in China to expand their business.

On the other hand however, the total value of accumulated Chinese direct investment in the U.S. was only 3.1 billion dollars by last June, according to ministry statistics.

Chen said opening the American market wider to Chinese companies will definitely create many more job opportunities in the United States, a fact that U.S. politicians can’t afford to ignore as the country is still haunted by an unemployment rate as high as 9.3 percent.

American politicians should abandon their bias and discrimination against Chinese enterprises and free themselves from the Cold War mentality, Chen said.

“After, solving the problem of unemployment could bring much more tangible benefits for the American people,” she said.

Note that this is in sharp contrast to the current state of Chinese direct investments in other parts of the world:
China-Qatar cooperation benefits both countries [Xinhua, June 23, 2008]
Tenth anniversary of China-Africa forum observed in Egypt [Xinhua, Nov 11, 2010]

Chinese direct investment in Africa increased from 210 million dollars in 2000 to 1.44 billion dollars [?yearly?] in 2009, according to Song [Aiguo, Chinese new ambassador to Egypt]. More than 2,000 Chinese enterprises have set up branches in the continent.

Cooperation benefits all people [China Daily via Xinhuanet, Nov 7, 2011]

Chinese investment in Africa has expanded steadily. In 2008, Chinese direct investment in the continent amounted to 5.49 billion dollars. The existing stock of investment had reached 7.8 billion dollars and more than 1,600 Chinese companies had invested in Africa by 2008, covering a wide range of areas from product processing to agricultural development. Substantial progress has been made in infrastructure cooperation.

Chinese enterprises have undertaken the construction of some major projects in Africa, including the east-west expressway in Algeria, the expansion of the Lobito Port in Angola and the Bui hydro-power station in Ghana, which have been widely applauded by local governments and people. After years of efforts, China-Africa trade and economic cooperation has shifted towards a diversified and interactive pattern encompassing trade, investment, aid and project contracting, playing an irreplaceable role in the economic development of both sides.

Sino-Russian trade back on fast track: officials [Xinhua, Aug 20, 2010]

Mutual investments also surged this year, as Chinese direct investment to Russia jumped 58.5 percent during the first half of 2010and the Russian investment to China up 18.3 percent, they said.

Russia is interested in continuing cooperation in such areas as electric power, nuclear energy, logistic infrastructure, [Russia’s Economic Development Minister Elvira] Nabiullina said.

Chen [Deming her Chinese counterpart] said Chinese companies are willing to increase investment in Russian enterprises and to take part in their infrastructure construction.

He noted that China would take active measures to promote the import of Russian mechanical and electrical products, and also hopes that in return Russia will open its market to more Chinese cars.

– Full text: Report on China’s economic, social development plan [Xinhua, March 17, 2011]
5. Reform and opening up were further intensified.

We vigorously implemented the “go global” strategy and made further progress in a number of major outward investment projects. Non-financial outward direct investment for the year amounted to $59 billion, an increase of 36.3%.

– Full Text: Report on China’s national economic, social development plan [Xinhua, March 16, 2010]
6. Reform and opening up continued to deepen.

China’ s foreign exchange reserves stood at $2.3992 trillion at the end of 2009, an increase of $453.1 billion year on year. Outbound investment cooperation soared despite the financial crisis, with new progress made in joint exploitation of energy and resources, overseas mergers and acquisitions, contracted projects and labor services. Chinese direct investment (excluding financial sector investment) in other countries reached $43.3 billion in 2009, an increase of 6.5%, and the volume of business in overseas contracted projects amounted to $77.7 billion, an increase of 37.3%.

– Full Text: China’s economic, social development plan [Xinhua, March 20, 2008]
Special Report: NPC, CPPCC Annual Sessions 2008

Chinese enterprises did more investing overseas and increased cooperation with foreign companies, resulting in Chinese direct investment in other countries, excluding financial investment, reaching US$18.7 billion in 2007, an increase of 6.2% over the previous year.

Hu’s visit to further promote Sino-Vietnamese ties [Xinhuanet, Oct 30, 2005]

By September 2005, Chinese direct investment in Vietnam rose to 710 million dollarswith 346 projects.

The two countries are implementing a series of cooperative projects using preferential loans offered by the Chinese government, such as those in the Thai Nguyen Iron and Steel Plant and the Bac Giang Fertilizer Factory.

Good TD-LTE potential for target commercialisation by China Mobile in 2012

See also: Mobile Internet (Aug’11) which is a total update on Aug 26, 2011 with a lot of additions to the original July 19, 2010 content on the following subjects:
– LTE and LTE Advanced — HSPA Evolved (parallel to LTE and LTE Advanced) — Heterogeneous networks or HetNets — Femtocells and Picocells — Qualcomm innovations in all that — Ericsson’s LTE Advanced demo — Current roadmaps on evolutions of current 3G+ broadband mobile networks

Updates: China Mobile to set up TD-LTE network in Hong Kong [Feb 8, 2012]

The Hong Kong subsidiary of China Mobile, the largest mobile telecom carrier in China, has acquired 15-year licensed use of 30MHz-bandwidth radio frequency band 2,330-2,360MHz from the Office of the Telecommunications Authority, Hong Kong for HK$170 million (US$21.9 million), and the parent company will use the band to provide TD-LTE (Time Division-Long Term Evolution) service in Hong Kong, according to industry sources in Taiwan.

China Mobile is required to reach a minimum coverage of 50% of the Hong Kong population for its mobile services or 200 commercial and/or residential buildings for its fixed services in the initial five years following the licensing, the sources said.

China government not expected to issue TD-LTE operating license for the time being [Jan 16, 2012]

While China Mobile has been actively promoting TD-LTE, the China government is not expected to issue a TD-LTE operating license to China Mobile for the time being, according to industry sources.

China Mobile finished initial TD-LTE trials in seven selected cities in China around the end of 2011 and has proposed a second-round of trials, but the China government has not yet approved the plans, signaling the government’s attitude to slow down promotion of TD-LTE in China, the sources indicated.

This is because 3G mobile communication services are taking off in the China market and therefore the government does not want to issue a TD-LTE operating license out of consideration for China Telecom and China Unicom, the sources said.

Volume production of TD-LTE handsets to not start until end-2012 [July 14, 2011]

Although some telecom carriers plan to kick off commercial TD-LTE services in the second half of 2011, volume production of TD-LTE-enabled handsets will not be realized until the end of 2012, according to industry sources in Taiwan.

Being pushed by China Mobile, more than 10 telecom service providers worldwide have committed to support TD-LTE technology and about 20 other carriers, including those in India and Japan, are now testing TD-LTE networks, noted the sources.

However, those carriers will use devices such as mobile data cards and routers as end devices to support their TD-LTE networks initially without the availability of TD-LTE handsets, the sources added.

Although China-based handset makers may adopt single TD-LTE chips being rolled out by Innofidei and Hisilicon Technologies, most of them may begin commercial production of TD-LTE handsets at year-end 2012, the sources indicated.

International chipset makers including Qualcomm and ST-Ericsson both plan to launch LTE FDD and TD-LTE dual-mode chips, but volume production of those chips will not begin until the first half of 2012, explained the sources.

End of updates

Compulsory preliminary reading (as the information in that is the essential part of this post and generally won’t be repeated her):
China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that [June 18, 2011]. One esssential quote is important, however:

We are targeting commercialization next year, not in five years. In fact, operators in India and Japan plan to go commercial this year, but we are not that aggressive. So you see: 4G is not being pushed by the vendors, like 3G was. 4G is being pushed by the carriers. LTE is the only standard in the industry where, if you have a product, people will buy it right away. It’s  the reverse of how things used to be, and very interesting. LTE is being developed fast, but not fast enough.

[Bill [Xiaoqing] Huang, general manager of China Mobile’s Research Institute, response to the reporter’s question: Isn’t that a long way off in the future? Don’t you need to develop mobile broadband now?]

as well as two whole excerpts:

TD-LTE Industry Briefing – May 2011 by China Mobile [May 27, 2011]

TD-LTE Large Scale Trial in China Update –All 6 Cities Have Launched Base Stations

  • All 6 cities have launched base stations. The number of launched Base Stations has reached 20% of the planned ones.
  • The planning of continuous coverage in hot spot areas has been completed in all 6 cities. The constructions are under way:
    – 78% supporting facilities modification accomplished
    – 69% equipments arrived
    – 35% equipments installed
      • Transmission tests have been completed in several cities
      • EPC and Security tests initiated in several cities in April 2011
      • RANtests are planned to start in the end of May 2011TD

GTI Official Website: http://www.lte-tdd.org

The GTI official website was launched during the 1st GTI Workshop [on 27-28 April 2011 in Guangzhou, China]. The website shares the latest information about TD-LTE related News, Events, Reports and Statistics. GTI operators have the rights to access the Working Space on GTI website for technical presentations and further deliverables of GTI.

China Mobile Almost Finishes Pilot TD-LTE Network Deployment [June 7, 2011]

China Mobile, one of the Big Three telecom operators in the country, has completed deployment of a pilot TD-LTE network in most of the cities selected for a planned test, disclosed people familiar with the matter today.

Most of the system equipment makers have completed the first TD-LTE call in cooperation with the branches of China Mobile, according to one of the people, noting that additional telecom equipment makers are expected to make a presence in the program for an expansion of the test.

The TD-LTE network test, kicked off on March 24 with the releasing of document from the Ministry of Industry and Information Technology (MIIT), has been going on smoothly reflected by a group of telecom equipment makers’ success in TD-LTE call.

Huawei Technologies Co., Ltd., one of the top-ranking telecom equipment makers in the country, helped launch the first TD-LTE wireless connection in Shenzhen on April 6, facilitating the rollout of high-speed download service and high-definition video service based on the TD-LTE data card.

And now the new information about TD-LTE potential for target commercialisation by China Mobile in 2012:

China Mobile ambitious to lead 4G tech [by China Daily, July 11, 2011]

BEIJING – China Mobile, the country’s largest mobile telecom operator, is taking ambitious steps to promote the “fourth-generation,” or 4G mobile technologies, according to the general manager of its research institute.

“You have to be a leader, not a follower…timing is everything,” said Huang Xiaoqing [Bill], general manager of China Mobile’s Research Institute, in an interview with Xinhua.

With more than 600 million subscribers, the mobile giant, which is both listed in Hong Kong and New York, is pushing for China’s home-grown 4G standard, known as TD-LTE, or “Time Division-Long Term Evolution,” to be a globally accepted standard.

The technology is expected to provide faster broadband wireless services to meet the explosive future demand in data communication that the current 3G network is unable to deliver, Huang said.

Demand for mobile communications, especially for mobile internet, is rapidly growing, totally beyond our expectation and forecast,” he said.

The TD-LTE network is believed to be “ten times lower in price and ten times better in performance” than the current 3G service, he added.

The upgraded version of TD-LTE, or TD-LTE-Advanced, is now among the three international 4G standards accepted by the UN’s International Telecommunication Union(ITU). The other two are LTE FDD and WiMAX, which are dominated by Europe and the United States, respectively.

Currently the company has arranged large-scale TD-LTE trials in six Chinese cities and set up a demonstration network in Beijing. It has also developed a TD-LTE mobile network in Taiwan with the local Far EasTone Telecommunications for testing purposes.

According to Huang, telecommunication operators worldwide are seeking a single and unified global standard and tend to agree to the LTE standard.

China Mobile joined with seven other operators to form Global TD-LTE Initiative(GTI) at the Mobile World Congress in Barcelona in February, he said.

The GTI now has 22 members, including telecommunication giants like the UK’s Vodafone, Japan’s Softbank, and Axiata from eastern Europe. Currently, trial networks of TD-LTE have been established in 29 countries.

Goldman Sachsis also optimistic about TD-LTE’s future. In a report released late June, the investment bank said TD-LTE is becoming the global solution for unpaired spectrum due to its 3G inter-operability, large data capacity, and leverage of the LTE FDD system.

The report expects China Mobile, Bharti (India), and Softbank to launch TD-LTE services in late 2012 or 2013, which would cover nearly 2.7 billion people, or 39 percent of the world’s total population, in the three countries.

China is leading the global promotion of the TD-LTE standard, therefore, tests on the network are fully open, said Cao Shumin, vice director of the Telecommunication Research Institution under with the Chinese Ministry of Industry and Information Technology(MIIT).

The test site at the MIIT institutionhas gathered not only domestic cell phone manufacturers but also multinational tycoons like Motorola, Ericsson, and Nokia Siemens Networks.

The LTE FDD network, which is promoted by European operators, is seen as a strong competitor to TD-LTE. But as the two technologies are based on the same LTE system, they are able to share R&D results and subscribers at a global level, Cao said.

The company is also pinning hope on the 4G technology to gain back its high-end subscribers lost to China Unicom and China Telecomin the 3G business.

China Mobile, whose 3G network technology isn’t supported by the iPhone, has announced it will work with Apple on a TD-LTE-type iPhone.

Currently, China Mobile’s iPhone users can only run their device on the 2G mobile network.

But the Chinese government has not given a clear timetable for the commercial launch of TD-LTE.

Miao Wei, minister of the MIIT, said in April that China plans to commercially promote the TD-LTE technology nationwide within three to five years.

The government has only issued the 3G licenses in 2009, with China Mobile getting the self-developed TD-SCDMA standard.

The regulator is afraid that China Mobile is becoming stronger, gaining more market share and monopolizing the market,” Huang said.

China Mobile had 611 million subscribers by the end of May, of which 32 million were 3G users. China Unicom had 22.1 million 3G users in May, while China Telecom came in third with 19.7 million.

Cell Shackles Crumble [by WSJ via C114, July 12, 2011]

China Mobile Ltd. has missed out on Apple Inc.’s iPhone and other hot smartphones because China’s government forced the Chinese company to build its 3Gnetwork with a homegrown technology not used elsewhere.

Now, the world’s biggest carrier, with more than 611 million subscriber accounts, is looking to improve its situation as it prepares to roll out a fourth-generation network.

China’s government, which owns all three of the nation’s telecommunications carriers, saddled China Mobile with TD-SCDMA, a third-generation wireless technology developed in China, because Beijing thought the company’s size would help promote the technology. The government let the other two, smaller, carriers employ the foreign-developed protocols that are used in other markets.

Now, the industry is moving toward a fourth generation of mobile technologies, part of a migration that allows faster, pricier data services. China Mobile has backed a standard called TD-LTE, for time-division long-term evolution. Analysts said the company has a shot at reversing the fate it suffered with 3G, largely because the company has worked to build international support for the technology.

With 4G, most carriers so far have favored a different version than China Mobile’s technology, called FDD-LTE. In the U.S., VerizonWireless introduced 4G services using the standard last year, and AT&T Inc. will do so in some cities this summer.

But there are also major carriers interested in TD-LTE, which China Mobile is using. Bharti Airtel Ltd., India’s largest telecom company by users, has said it will adopt the protocol. U.S. wireless-service provider Clearwire Corp. last year said it would run tests with both versions of LTE. And in Japan, a unit of Softbank Corp. plans to introduce a service this yearthat it says will be compatible with TD-LTE.

China Mobile has encouraged suppliers and other mobile carriers to support the technology. Analysts said Chinese telecom-equipment maker Huawei Technologies Co. also has been a key advocate.

Analysts said development of supporting equipment for TD-LTE has lagged behind that for FDD-LTE by more than six months. But TD-LTE has advantages: It makes more efficient usethan does its cousin of wireless spectrum, a scarce resource.

In part because TD-LTE has international support, it could mean access for China Mobile to a wider range of handsets and less-expensive components, analysts said. China Mobile Chairman Wang Jianzhou in May said Apple planned to use TD-LTE on the iPhone.

China Mobile also appears to be racing ahead of its Chinese rivals toward 4G. Mr. Wang in March said the company aims this year to start commercial trials of TD-LTE using wireless modems. China Unicom [the W-CDMA licensee] Chairman Chang Xiaobing in March simply said the company was experimenting with 4G technology. And a China Telecom [the CDMA2000 licensee] spokesman last week said the carrier doesn’t have a timetable for building a next-generation network.

China Mobile and TD-LTE still face hurdles. According to the state-run China Daily newspaper in March, China’s information-technology minister said China won’t launch commercial 4G mobile services nationwide until 2014, leaving unclear how quickly China Mobile will be able to move ahead.

But TD-LTE still has more potential than China Mobile’s 3G standard did, said Duncan Clark, chairman of consulting firm BDA China Ltd. “People certainly can’t just say it has no future, which is better than TD-SCDMA,” he said.

China Mobile Shows Power Still Lies With the Party [Financial Times via China Digital Times, July 5, 2011]

At first glance it looks easy to tell who is in charge at China Mobile, the world’s largest mobile phone operator by subscribers – industry veteran Wang Jianzhou is chairman of both the Hong Kong-listed company and its majority stakeholding parent.

In reality, however, things are not so simple. In a terse notice last week the listed company revealed that Mr Wang had been replaced as secretary of the Communist party committee at the state-owned parent company by Xi Guohua, former vice-minister for information technology….

Such is the strange world of Chinese big business, where an enthusiastic embrace of the trappings of global capitalism and corporate governance collide with the hard facts of political power in a one-party state. While China’s communists long ago cast aside any pretence to ideological purity, they remain determined to keep tight control over the state companies that command the economic high ground ….

Some observers of Mr Xi’s appointment last week wonder if it is part of a wider clear-out linked to the waning influence of former Chinese president Jiang Zemin and the upcoming retirement of current leader Hu Jintao. Others see it as punishment for Mr Wang for failing to prevent China Mobile becoming ensnared in a series of corruption scandals since 2009. More benignly, the move could be seen as simply a preparation for the 63-year-old chairman’s retirement.

Wang Jianzhou: China Mobile’s Growth is Sustainable [Caijing, July 5, 2010]

With fierce market competition and an unknown model for the mobile Internet, what path should China Mobile take to continue its growth?

By staff reporters Ming Shuliang, Zhang Min, Wang Qihua and Li Weinuo

The number of mobile phone users in China continues to rise. After the last round of restructuring, the level of competition in the market intensified as two operators became three. TD-SCDMA technology is not as mature as WCDMA and CDMA2000. And the popularity of the mobile Internet has changed the original business model of the communications industry. In an interview with Caijing, China Mobile Communications Corp. Chairman Wang Jianzhou discussed the four major challenges ahead for China Mobile.

[the 1st one is the further growth in general and turning the current TD-SCDMA investment profitable in particular] Wang believes there are still growth points in China’s mobile communications market. The penetration rate in China’s rural areas is still low, and people are steadily migrating to cities, which will bring more new users and continued growth. At present, China Mobile’s revenue share of data traffic only accounts for 7.5 percent of annual income. Moreover, the demand for machine to machine communication, also known as the Internet of Things, also has some room for growth.

Wang is optimistic about China Mobile’s future growth prospects, stating that TD-SCDMA terminals have steadily improved, WiFi and LTE networks are now being built, and China Mobile’s scale dividends have yet to be tapped.

China Mobile plans to increase its TD-SCDMA subscribers to 50 million by the end of 2011. And by improving terminals and increasing network usage of its TD network, the company will pay more attention to the development of mid-to-high-end mobile phones.

[the 2nd one] China hasn’t yet issued a timetable for 4G network licensing. Wang believes that tablet PCs may become an important application for the LTE era. [Bill Huang, GM of the China Mobile Research Institute has made a possible clarification for that here: “I see them as just bigger smartphones. In fact, Microsoft and others have tried for many years to introduce tablets and failed. But when Apple introduced the iPad, which is just a big iPhone, everybody loved it. So, this proves that a successful tablet is a big smartphone. The look and feel is very similar to that of a phone.]

Driven by China Mobile, more international carriers, especially operators from the WiMAX world, are joining the TD-LTE camp. Japan-based Softbank Mobile Corp. has pledged to put its TD-LTE network into commercial use by the end of 2011.

[the 3d one] Negotiations between China Mobile and Apple Inc. have yet to conclude, and terminal subsidies are one of the key points for both sides. China Mobile only provides 3G terminal subsidies, but Apple doesn’t support China Mobile’s TD-SCDMA standard. Apple has promised to manufacture TDD standard compatible mobile phones after LTE chips come out.

[the 4th one is international expansion] China Mobile’s Pakistan subsidiaryhas widened its subscriber base to 10 million, and the company is expected to turn a profit in 2012. China Mobile’s future international acquisitions will focus on key emerging markets, TD-LTE operators and Internet companies. The company is also now considering whether it can participate in future international mergers and acquisitions as a minority shareholder.

Full article in Chinese: http://magazine.caijing.com.cn/2011-07-03/110763826.html [王建宙:增长仍将持续]

China Mobile to set up 1,000 TD-LTE base stations in five cities [March 28, 2011]

China Mobile (CHL.NYSE; 00941.HK) decides to initiate large-scale construction of TD-LTE trial network in five cities first. Five telecom equipment providers will share the construction, with each establishing 200 base stations in assigned citi (NYSE:C) es, according to www.sina.com.cn.

The TD-LTE trial network was planned to cover seven cities, including Beijing, Shanghai, Nanjing, Hangzhou, Guangzhou, Shenzhen and Xiamen, but there are only five telecom equipment manufacturers passed the external field tests so far, and each manufacturer is entrusted with network construction in one city.

Alcatel Shanghai Bell Co., Ltd. acquired the mobile TD-LTE trial network deployment program in Shanghai; Huawei Technologies Co., Ltd . took up Shenzhen; Nokia-Siemens (NYSE:NOK), Hangzhou; ZTE Corp. (OOTC:ZTCOY), Guangzhou; and Datang Telecom Technology Co., Ltd., Nanjing.

An industrial insider revealed that as long as other telecom appliance providers pass the tests, China Mobile will start the construction in Beijing and Xiamen [July 1: picked by Nokia Siemens Networks, see later] at any time.

China Mobile schedules to complete the trial network construction in the first batch of cities by September.

China Mobile TD-LTE trial network details [July 1, 2011]

Experts of China Mobile revealed the details of TD-LTE trial network that the first batch of admited equipment vendors, which including Huawei, ZTE, Datang, Nokia Siemens, Shanghai Bell, Motorola and Ericsson, have completed the testing of core network, and went into the next phase of wireless network, it is expected by the end of December, 2011, all the vendors will complete the testing.

Now, the first batch of admited equipment vendors have completed the hotspot contiguous coverage, the first base station and transmission testing in several cities, while the core network, security testing and wireless networks has also being started.

The TD-LTE network trial has three major parts: wireless networks, terminals, core network (basic function: verification, carrying and transmission).

Demo business includes home entertainment, working and living, office meetings and professional use such as high-definition wireless video on demand, 3G video-on-demand and high-speed wireless cities.

China Mobile in TD-LTE testing R&D pact [July 4, 2011]

China Mobile has entered a joint TD-LTE R&D agreement, and revealed it tapped NSN [Nokia Siemens Networks] to deploy part of its trial networkusing the homegrown 4G standard.

The operator’s R&D division, China Mobile Research Institute, has signed a MoU with Rohde & Schwarz to collaborate on the development of TD-LTE testing tools and systems, AsiaNet reported.

A stated goal of the co-operation is to speed up global deployment of TD-LTE.

NSN meanwhile announced it has been operating TD-LTE test networks in two of the six cities where China Mobile has been trialling the technology since May.

The core network has been tested, and NSN has now moved on to radio access. The vendor is also working with the ICT ministry on TD-LTE device testing, and said it will introduce devices into the trial network once the preliminary tests are complete.

China Mobile hopes to commercially launch TD-LTE in 2012, but the communications ministry in March stated it doesn’t expect significant LTE rollouts until 2014.

Nokia Siemens Networks trials TD-LTE in Hangzhou and Xiamen [July 1, 2011]

First global vendor to be awarded two cities in six-city China Mobile 4G trial

Nokia Siemens Networks has successfully been running live TD-LTE (4G) trial networks in Hangzhou and Xiamen for China Mobile, the world’s largest operator. The trial networks, operational since May, demonstrate the promise of TD-LTE to transform the mobile broadband experience in China. Trial users have been able to enjoy peak download and upload speeds of up to 100 Mbps along with uninterrupted access to applications such as video streaming and online HD video conferencing.

Nokia Siemens Networks has already finished testing the core network and is now testing radio access. It is working with China’s Ministry of Information and Industry Technology (MIIT) on TD-LTE device testing, and will use devices in the trial, when testing is completed.

“In Zheijang region, we reached a major milestone earlier this year with 50 million subscribers and can also see the data boom in the network,” said Zhong Tianhua, General Manager of China Mobile Group Zhejiang Co. Ltd. “As our long-standing partner, Nokia Siemens Networks fully understands our aim to improve the capabilities of our network to improve subscriber experience.”

Nokia Siemens Networks deployed its single RAN advanced TD-LTE equipmentin 2.3GHz and 2.6GHz spectrum. The company’s network management system, NetAct is providing configuration, monitoring and operations support system capabilities during the trial. Nokia Siemens Networks is also providing network planning and optimization services.

“Nokia Siemens Networks has been committed to developing the TD-LTE ecosystem since its inception. The Motorola Solutions’ acquisition clearly strengthens our market proposition and enables us to deliver greater value to operators, looking to adopt TD-LTE,” said Markus Borchert, head of customer operations for Greater China at Nokia Siemens Networks. “China Mobile’s trust in our TD-LTE capabilities for this large-scale trial affirms our technology leadership and readiness for large-scale commercial TD-LTE rollouts.”

ZTE launches new salvo against Huawei [June 8, 2011]

Chinese telecommunications equipment maker ZTE Corp has demanded rival Huawei Technologies Co stops making and using equipment related to fourth-generation time division long term evolution (TD-LTE) technology, expanding the legal battle between the two Chinese telecom giants.

In a lawsuit filed at the Shenzhen Intermediate People’s Court, ZTE alleged that Huawei infringed on three TD-LTE patents. The company also demanded Huawei stops participating in large-scale TD-LTE trials in seven Chinese cities that started in January.

The move came after Huawei filed four lawsuits against ZTE in Germany, France and Hungaryat the end of April, accusing it of patent and trademark infringements.

Representatives of ZTE’s communication department said on Tuesday that the Shenzhen court has accepted the case and the company is awaiting the next phase of the lawsuit.

Shi Xiaoyan, a Huawei press officer, said Huawei has received a bill of indictment from the Shenzhen court. She said Huawei welcomes ZTE’s counteraction.

“We believe the court will give us a fair trial. Huawei is a leading company in LTE technology, and we own 15 percent of the basic patents in LTE technology worldwide,” Shi told China Daily.

TD-LTE technology is a Chinese telecommunication standard. China Mobile Ltd, the world’s biggest phone carrier by users, is leading its development and striving to make it a global standard.

In December, China Mobile got approval from the Ministry of Industry and Information Technology to begin large-scale tests of TD-LTE technology in seven cities. Huawei is working with Telefon AB LM Ericsson to provide TD-LTE equipment in Shenzhen, while ZTE is supplying the equipment for the trial network in Guangzhou. Alcatel-Lucent SA is providing equipment for Shanghai and Nokia Siemens Networks for Hangzhou.

The lawsuit is unlikely to hamper China’s TD-LTE trials,” said Yang Hua, secretary-general of the TD Industry Association in China. He pointed out that the lawsuit could be lengthy and Huawei will not suspend the trial network constructionunless the Shenzhen court issues an injunction.

Yang also said he expects that all of the lawsuits are merely “paving the way for a comprehensive settlement”, because ZTE and Huawei both own a large portion of LTE patents and cannot afford to work without each other.

Ji Chendong, an analyst with the research firm Frost & Sullivan, said the competition between Huawei and ZTE has become increasingly intense, especially in the overseas market. “The market share in Asian and African countries is relatively stable, and Europe and the US are the two telecom giants’ major battlefields,” Ji said. That explained why Huawei launched the first salvo in its war on ZTE in the European market.

ZTE’s revenue rose by 50 percent year-on-year in the European and US markets in 2010, the biggest overseas contributors to ZTE’s annual growth. The company expects its revenue to grow by more than 20 percent this year, beating Huawei’s forecast of less than 8 percent.

ZTE demonstrates TD-LTE handover [July 12, 2011]

TD-LTE devices are close to hitting the market, according to ZTE, which has completed what it says was the world’s first TD-LTE to 2G/3G handover test.

The Chinese vendor saidit had demonstrated interoperability between TD-LTE terminals and GSM, UMTS and CDMA EV-DO networks.

Some operators have been reluctant to deploy the 4G technology due to concerns about TD-LTE multi-mode terminals, but ZTE claims its tests demonstrate the maturity of the standard’s ecosystem.

The China Mobile-backed TD-LTE standard is gaining traction worldwide. As of April, ZTE alone had deployed TD-LTE trial and commercial networks for 25 operators in 15 countries throughout Asia and Europe.

Indian incumbent Bharti Airtel will adopt the protocol and a Softbank unit and US wireless operator Clearwire have revealed that they will test the technology, WSJ said.

China Mobile has itself built a trial network in six cities, and has teamed up with FarEasTone to trial the standard in Taiwan.

ZTE on Friday revealed [July 8] it had secured a $900 million loan with 10 international banks to help it further expand internationally.

ZTE, first to Start the TD-LTE Large-Scale Test in Guangzhou

On March 24, 2011, China’s Ministry of Industry and Information Technology (MIIT) officially announced the kickoff of TD-LTE scale test. ZTE as one of the first vendors to enter the TD-LTE field will be responsible for building the TD-LTE network in Guangzhou, indicating the start of TD-LTE scale test in China.

This project which is organized by MIIT and China Mobile will cover six cities including Shanghai, Hangzhou, Nanjing, Guangzhou, Shenzhen and Xiamen. It will also include a demon network to be deployed in Beijing. After all the deployments are completed, China Mobile will be able to provide high-speed mobile broadband services such as HD video, 3D games, FTP transmission and high-speed Internet access for the customers in these cities. In the previous 2×2 IOT – MIIT’s entrance test for TD-LTE scale test, ZTE was the first to complete the IOT with Innofidei and Hisilicon and became one of the first vendors to build TD-LTE trial due to its innovations and commercialization.

ZTE has led the industry in TDD technology. It has kept the leading position in the TD-LTE field in terms of technology and system commercialization. In January 2011, the well-known consulting institution Frost & Sullivan released the TDD market research report, in which ZTE was ranked No.1 in terms of competitiveness.

ZTE has been actively promoting the commercialization of TD-LTE. By April 2011, ZTE had deployed TD-LTE trials and commercial networks for 22 world-leading operators in 13 countries covering Europe, India, Commonwealth of Independent States (CIS), Asia-Pacific, Southeast Asia, and so on. ZTE is building the world’s largest LTE TDD/FDD commercial network in Sweden and Denmark, which is also the first TD-LTE network in North Europe. This network will adopt ZTE’s SDR base stations, unified core network and network management platform. Besides, ZTE also actively collaborates with a large number of chipset vendors such as Qualcomm, Sequans and Altair to carry out IOT so as to jointly promote the ecosystem development.

ZTE, the Only Vendor to Provide TD-LTE Service for GTI

The Global TD-LTE Initiative 1st Workshop made its debut in Guangzhou on April 27 to 29, 2011. ZTE and CMCC presented diversified interactive service experience inside and outside the conference hall based on the TD-LTE trial in Guangzhou. The interactive service experience will include mobile video conference, HD 3D streaming and multi-mode high-speed FTP download, allowing the visitors to feel 4G in advance.

During GTI conference, the participants enjoyed the TD-LTE high-speed data service via MF820T data card which is solely provided by ZTE. The type of TD-LTE data card earned favorable comments what is the stable signal, excellent temperature-control.

GTI was officially launched by China Mobile, Bharti Airtel, Softbank Mobile, Vodafone, E-Plus, Aero2 and Clearwire at Mobile World Congress 2011. This event will help expand the international influence of TD-LTE, lay sound foundation for the global expansion of TD-LTE in future, and facilitate the implementation of global roaming and subscriber growth for TD-LTE. Besides the seven member operators, this event also attracts many operators and equipment vendors who have interest in TD-LTE development.

Guangzhou is one of the six cities in which China Mobile will carry out TD-LTE scale test. After China’s Ministry of Industry and Information Technology (MIIT) officially announced the kick-off of TD-LTE scale test on March 24, ZTE and China Mobile’s Guangzhou Branch jointly launched the first high-speed data service in the early April, which laid foundation for the development of diversified TD-LTE services.

ZTE has been actively promoting the commercialization of TD-LTE. By April 2011, ZTE had deployed TD-LTE trials and commercial networks for 22 world-leading operators in 14 countries covering Europe, India, Commonwealth of Independent States (CIS), Asia-Pacific, Southeast Asia, and so on. ZTE built the world’s largest LTE TDD/FDD commercial network in Sweden and Denmark, which is also the first TD-LTE network in North Europe. This network will adopt ZTE’s SDR base stations, unified core network and network management platform. Besides, ZTE also actively collaborates with a large number of chipset vendors such as Qualcomm, Sequans and Altair to carry out IOT so as to jointly promote the ecosystem development.

Ericsson to build TD-LTE trial network in China [April 7, 2011]

  • Will support China Mobile in its first large-scale TD-LTE trial network deployment in China
  • Network to be located in Shenzhen – a highly advanced telecoms market
  • Official interoperability tests in progress with ST-Ericsson and Qualcomm Incorporated to secure global ecosystem

China Mobile has selected Ericsson to participate in the world’s largest TD-LTE trial network deployment to date. With the approval of the Chinese Ministry of Industry and Information Technology (MIIT), Ericsson will build a TD-LTE trial network in the city of Shenzhen, one of the most advanced telecommunications markets in China.

The approval by MIIT follows the successful completion of interoperability tests of Ericsson’s TD-LTE network equipment with multiple chipset manufacturers. As part of its efforts to further develop the global ecosystem, Ericsson is proactively conducting interoperability tests with leading international players such as ST-Ericsson and Qualcomm.

Mats H Olsson, President of Ericsson China & North East Asia, says: “China Mobile has always been a formidable force in driving the evolution of telecommunications technologies. As a longtime strategic partner to China Mobile, Ericsson will fully support our customer in its tremendous endeavor to make TD-LTE a reality in the foreseeable future. Tens of millions of users, not only in China but also around the world, will benefit from the new and better services enabled by the superior TD-LTE technology, and we are thrilled to be part of this initiative.”

Ericsson will provide the industry-leading end-to-end TD-LTE solution, which includes its latest multi-standard base station, RBS 6000 and its commercially proven Evolved Packet Core (EPC) network; operations support systems software and professional services. As early as July 2010, Ericsson demonstrated extremely high-speed multimedia applications enabled by its TD-LTE solution in Shanghai, China. [First complete TD-LTE solution showcased [July 12, 2010]] And in February this year, Ericsson achieved another milestone by making the world’s first TD-LTE voice call over its LTE/EPC network in Barcelona, Spain. [Ericsson showcases voice over TD-LTE for China Mobile [Feb 14, 2011]]

In August of this year, Shenzhen will host the 26th Universiade, or World University Games. According to the deployment schedule, the network will be ready in time for athletes and visitors, together with the city’s population of more than 10 million, to enjoy the TD-LTE experience made possible by Ericsson.

Alcatel-Lucent and China Mobile speed the delivery of mobile broadband in China [May 11, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile have announced a major step toward the delivery of high-speed mobile broadband to subscribers in China by successfully completing the first call over a trial TD-LTE network deployed in the city of Shanghai.

Alcatel-Lucent’s end-to-end 4G LTE solution in Shanghai is a vital element of the large-scale TD-LTE trial formed by the China Ministry of Industry and Information Technology (MIIT) and China Mobile, covering six major cities in China, to commercially showcase the advantages of TD-LTE technology in delivering high-speed applications and services to millions of customers.

As a key partner of China Mobile, the largest mobile operator in the world, Alcatel-Lucent is utilizing its expertise in TD-LTE to deliver a highly-efficient and cost-effective network to the large population of data-hungry subscribers in the central business and education/technology districts of Shanghai.  The network includes the high-tech park of Zhangjiang and financial district of Lujiazui, which China Mobile and the Shanghai Government want to make a leading demonstration zone of TD-LTE technology. The successful completion of this first call is a major milestone in realizing this goal.

“We are excited to be able to collaborate with China Mobile and demonstrate our leadership in TD-LTE on this important trial network. The first call takes us a step closer in delivering a high-quality network that will provide faster wireless services and applications to the people of Shanghai,” said Rajeev Singh-Molares, president of Alcatel-Lucent ‘s activities for Asia-Pacific.

Alcatel-Lucent and China Mobile further enhanced their relationship in April of this year by announcing a joint research program to pioneer developments in next generation mobile communications, including further co-development of Alcatel-Lucent’s lightRadio solution.

Alcatel-Lucent has established a strong leadership position in LTE, being selected so far by fourteen customers for commercial deployments — including two of the world’s largest service providers — and being involved in over 60 LTE trials worldwide.

Alcatel-Lucent and China Mobile to Co-Develop Future of Mobile Networks [April 20, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile today announced a wide-ranging joint memorandum of understanding to pursue pioneering developments in next generation mobile communications including further co-development around Alcatel-Lucent’s powerful lightRadio™ technology.  The partnership agreement was signed by Romano Valussi, President of Alcatel-Lucent in China, and Bill Huang, president of China Mobile Research Institute in a signing ceremony in Beijing today.

China Mobile is the biggest mobile operator by subscribers in the world.  Alcatel-Lucent is a leader in radio access, IP, and optical technologies – all critical elements in mobile networking – thanks to its flagship Bell Labs research arm which invented and continues to invent many of the fundamental networking technologies of today and tomorrow including the much heralded lightRadio cube.

This research collaboration will further extend the close relationship between the two companies, establishing the framework to jointly explore:

  • the evolution of mobile network architectures leveraging and integrating China Mobile’s Cloud-RAN and Alcatel-Lucent’s lightRadio and advanced antennas technology;
  • explore the evolution of core network structure on the basis of network virtualization; and
  • develop technologies and approaches for alternative energy use to achieve green ICT

The MOU is mutually initiated and endorsed by Wang Jianzhou, Chairman of China Mobile and Ben Verwaayen, Alcatel-Lucent CEO.

Ben Verwaayen, CEO of Alcatel-Lucent, said: “This vital collaborative agreement will bring together two industry leaders, using joint research, to bring new breakthroughs to market at what we call ‘the speed of ideas’.”

Wang Jianzhou, Chairman of China Mobile said “Co-development with Alcatel-Lucent Bell Labs will benefit evolving our network technology to support the next generation of mobile-based applications, experiences, economies, and social networks.”

Alcatel-Lucent to help China Mobile deploy world’s largest 4G TD-LTE end-to-end trial network [March 24, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced it has been selected by China Mobile to participate to the world’s largest 4G TD-LTE trial network deployment in China. This qualification follows successful completion of various interoperability tests which started from January 2010 as required by the Chinese Ministry of Industry and Information (MIIT) and China Mobile. Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China is one of the first suppliers to have successfully achieved this key milestone and will be deploying its end-to-end LTE solution for China Mobile’s large-scale 4G TD-LTE trial in the city of Shanghai.

Covering 6 major Chinese cities, namely Shanghai, Hangzhou, Nanjing, Guangzhou, Shenzhen and Xiamen, and recently extended to Beijing, this large scale TD-LTE trial will help China Mobile to provide a wide range of high speed mobile broadband services to its subscribers, such as high definition video, 3D gaming, FTP transmission and high speed Internet. It will also enable new industries with LTE connectivity like automotive industry and multi-industry ecosystem development thanks to initiatives pioneered by Alcatel-Lucent through the ng Connect Program launched two years ago.

Rajeev Singh-Molares, president of Alcatel-Lucent’s activities in Asia-Pacific said: “This is a major accomplishment for Alcatel-Lucent and clearly reinforces our leading position in China and our global leadership in LTE. We are committed to provide China Mobile with the most advanced LTE solution for the world’s largest TD-LTE trial and to demonstrate the maturity and cost-effectiveness of our solution for TD-LTE which is emerging as the 4G standard for TDD spectrum globally. The successful interoperability tests with terminal suppliers further demonstrate our commitment to create an open TD-LTE ecosystem that will participate in the broader global LTE value chain.”

The tests were conducted in both 2.3GHz and 2.6GHz frequency bands for indoor and outdoor deployments and relied on Alcatel-Lucent’s industry-leading LTE expertise to provide an end-to-end integrated solution including LTE base stations (eNodeBs), the Evolved Packet Core (EPC). Alcatel-Lucent’s solution successfully passed interoperability tests with two major terminal suppliers.

Alcatel-Lucent is a key partner of China Mobile on TD-LTE and next generation wireless networks initiatives and evolution programs. During the 2010 Shanghai World Expo Alcatel-Lucent supported China Mobile in the first large-scale TD-LTE trial network deployment delivering advanced mobile services including ultra high speed Internet access and High Definition TV (HDTV). Most recently, at Mobile World Congress, Alcatel-Lucent and China Mobile demonstrated with Audi, a variety of in-vehicle high-value applications that worked seamlessly on a converged Time Division Duplex (TDD) and Frequency Division Duplex (FDD) network ensuring seamless global coverageand the ability to benefit from a common LTE ecosystem across both modes. Alcatel-Lucent and China Mobile are partnering to develop next-generation radio access network based on Alcatel-Lucent’s lightRadio, a groundbreaking innovationto prepare wireless networks to handle the explosive growth in demand for wireless broadband services while making the networks more eco friendly.

Having been selected so far by twelve customers for commercial deployments — including two of the world’s largest service providers— and being involved in over 60 trials worldwide –- including thirteen LTE TDD trials in seven countries — Alcatel-Lucent has established a strong leadership position in LTE.

More information about Alcatel-Lucent and LTE: http://www.alcatel-lucent.com/lte

About Alcatel-Lucent(Euronext Paris and NYSE: ALU)

The long-trusted partner of service providers, enterprises, strategic industries and governments around the world, Alcatel-Lucent is a leader in mobile, fixed, IP and Optics technologies, and a pioneer in applications and services. Alcatel-Lucent includes Bell Labs, one of the world’s foremost centres of research and innovation in communications technology.

With operations in more than 130 countriesand one of the most experienced global services organizations in the industry, Alcatel-Lucent is a local partner with global reach.

The Company achieved revenues of Euro 16 billion in 2010 and is incorporated in Franceand headquartered in Paris.

For more information, visit Alcatel-Lucent on: http://www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent blog http://www.alcatel-lucent.com/blog and follow the Company on Twitter: external linkhttp://twitter.com/Alcatel_Lucent.

Additional information on mobile infrastructure vendors participating in the TD-LTE trials by China Mobile (sans Datang for the time being):

  • Huawei
  • ZTE
  • Ericcson (+ acquisition of divested Nortel assets strategic for Ericsson)
  • Nokia Siemens Networks (NSN)
  • Alcatel-Lucent (with special emphasis on lightRadio and related QorIQ Qonverge SoCs from Freescale quite essential for that)

I. Huawei

Huawei Showcases Cutting-Edge LTE TDD Technology at the16th Asian Games [Nov 24, 2010]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that it has exclusively deployed a LTE TDD trial network for China Mobile at the 16th Asian Games in Guangzhou. Visitors to the Asian Games are able to enjoy a range of cutting-edge services, such as mobile HD (high definition) video conferencing and surveillance and HD video on demand. Using a portable digital video camera with the LTE TDD module-embedded, members of the media can send real-time high-resolution photos and live broadcast video across the world.

“As the use of data services is at an all-time high around the world, the development and rapidly growing uptake of LTE is in direct response to consumer requirements for faster mobile communication services,” said Ying Weimin, President of LTE Network, Huawei. “The success of this deployment, along with the success of our LTE TDD network at the Shanghai Expo, reaffirms the high performance and reliability of LTE TDD solutions and demonstrates Huawei’s commitment to enabling operators around the world to deliver superior mobile media experiences to their customers.”

Huawei’s demo network delivers the following solutions and services:

  • Low carbon and cost efficient LTE TDD base station, based on Huawei’s industry-leading SingleRAN solution
  • Evolved Packet Core (EPC)
  • HD video conferencing, mobile HD video surveillance, catch-and-transfer, live broadcast, and HD video on demand (VOD)
  • LTE TDD devices featuring high-end chipsets
  • E2E service deployment, management, and service guarantee

As a leading provider of E2E mobile broadband solutions, Huawei constructed the world’s first LTE FDD network for TeliaSonera in Norway and was awarded the world’s first LTE TDD commercial contract from Aero2 in Poland. To date, Huawei has won 18 commercial LTE contracts and has partnered with leading operators in Europe, North America, Asia Pacific and the Middle East to deploy over 70 LTE/EPC trial networks deployments around the world.

Huawei Awarded the World’s First Commercial Frame Contract Covering LTE TDD Technology in Poland [Nov 18, 2011]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that it has been awarded a frame contract to deploy the world’s first commercial LTE TDD network for Aero2, Poland’s leading mobile broadband operator. With Huawei’s end-to-end LTE TDD/EPC (Long Term Evolution/Evolved Packet Core) solution, the network will allow ultra-speed data rates and deliver rich experiences and high-quality mobile broadband services, such as video call and mobile Internet access, to Aero2’s subscribers. The network will become operational in early 2011.

“Aero2 is committed to providing high-quality mobile broadband services for our customers and introducing cutting-edge telecom technologies in Poland,” said Adam Kuriański, the President of Aero2. “We are confident that with Huawei’s advantages in LTE technology, we will be able to offer users a rich communications experience with the deployment of the LTE TDD network.”

“This milestone demonstrates that LTE TDD technology is already mature, stable and reliable for large-scale deployment,” said Ying Weimin, President of LTE Network, Huawei. “Based on Huawei’s LTE unified platform supporting both LTE FDD and LTE TDD, we are confident that the network will contribute to Areo2’s success in the mobile broadband era.”

Due to their long-term partnership, Aero2 and Huawei have achieved a series of breakthroughs in LTE, benefiting from Huawei’s LTE FDD and TDD unified platform. In September, 2010, the world’s first commercial LTE FDD network, on 1800MHz band, was launched in Poland. Recent LTE TDD lab testing with Aero2 in Poland showed that download throughput rate reached up to 100Mb/s.

As a leading provider of end-to-end mobile broadband solutions, Huawei has constructed the world’s first LTE FDD network for TeliaSonera in Norway and supported China Mobile to deploy the world’s first pre-commercial LTE TDD network at the 2010 Shanghai World Expo. To date, Huawei has won 18 commercial LTE contracts and has partnered with leading operators in Europe, North America, Asia Pacific and the Middle East to deploy over 70 LTE/EPC trial networks around the world.

About Aero2

Aero2 is a new comprehensive telecommunications provider in Poland. The company builds mobile networks and broadband Internet access. The coverage of Aero2 has already reached more than 40% of the Polish population. Aero2 has a radio frequency of 900 MHz and 2.5 GHz.

Huawei Launches Industry’s First WiMAX and LTE TDD SingleRAN Solution [Nov 3, 2010]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today released the industry’s first commercially available WiMAX and LTE TDD SingleRAN solution. This end-to-end solution enables operators to seamlessly migrate from WiMAX to LTE TDD networks.

Huawei is the first vendor to offer a commercially available solution consisting of a WiMAX and LTE TDD dual mode remote radio unit (RRU) and dual mode base band unit (BBU), which fully support 2.3GHz, 2.5GHz and 3.5GHz mainstream Time-Division Duplexing (TDD) frequency bands. Based on Huawei’s leading SingleRAN ability, Huawei WiMAX RRU has been widely applied in several operators’ current operating WiMAX networks. It is a 4T4R (four transmitters and four receivers) design that supports multi-input multi-output (MIMO) and Beamforming (BF), and it can be flexibly configured as a WiMAX module, a LTE TDD module, or a WiMAX and LTE TDD dual mode module simply by upgrading the software.

This solution also features an end-to-end advantage by adopting Huawei’s SingleEPC packet core network solution, which enables GPRS, UMTS, LTE, and WiMAX users alike to enjoy high-speed mobile broadband access with converged and smart network management.

“Huawei’s WiMAX and LTE TDD SingleRAN solution will provide our customers with great flexibility,” said Tang Xinhong, Vice President of Wireless, Huawei. “By adopting Huawei’s SingleRAN solution, operators will be well-positioned to adapt and evolve their networks to any standard in the future. This solution also offers operators current investment protection and an overall lower total cost of ownership.”

Huawei supported China Mobile to deploy the world’s first pre-commercial network using its LTE TDD solution. This network successfully demonstrated a variety of mobile broadband services, including high definition (HD) transmission, HD video conference, HD video monitoring, HD video-on-demand (VOD) and HD live broadcasting to visitors in the 2010 Shanghai World Expo Park and some key pavilions.

Huawei has won over 79 commercial WiMAX networks contracts worldwide and is adding new ones faster than any other vendor in the world. Huawei has a wealth of experience in delivering global WiMAX projects, and has partnered with operators worldwide including BSNL in India, Globe in the Philippines and MTN in the Middle East and Africa.

China Mobile Launches World’ s First TD-LTE Network with Huawei’ s E2E Solution [May 6, 2010]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that it has assisted China Mobile Communications Corporation (CMCC), the world’ s leading telecom operator, launched the world’ s first TD-LTE/SAE trial network enabled by Huawei’ s E2E solution. The network, which offers a more than 10 times faster download data rate than existing 3G networks, will serve the entire 2010 Shanghai World Expo Park and some key pavilions.

Construction of the network faced challenges due to the more than 70 million visitors expected throughout the Expo and the complex coverage area that includes grass lands, rivers, roads and high density buildings. To address these challenges, Huawei’ s industry-leading E2E TD-LTE/SAE solution provides high-quality, high-speed, large capacity and low latency coverage. With this technology, visitors to the Expo will have access to a variety of mobile broadband services, including high definition (HD) video transmission, HD video conference, HD video monitoring, HD video-on-demand (VOD) and HD live broadcasting.

Li Changzhu, Vice President of China, Huawei, said: “This TD-LTE/SAE network is one of the most exciting innovations to be showcased during the Expo. Visitors from around the world will enjoy the unparalleled services offered by China Mobile’ s TD-LTE network. This milestone illustrates Huawei’ s commitment to support operators around the world in delivering truly mobile media experiences to consumers.”

As a major investor in TD-LTE/SAE technology and contributor in the development of its standardization, Huawei believes that the common development of TD-LTE and LTE FDD facilitates the efficient use of limited spectrum resources to meet performance and cost requirements of mobile broadband.

In May 2009, Huawei demonstrated TD-LTE-based inter-site and inter-cell switching for the first time in the world, marking a great leap forward toward massive commercial TD-LTE deployment. To date, Huawei has conducted more than 60 LTE networks, including commercial and trials with world leading operators. As of March 2010, Huawei has submitted more than 4,700 LTE/SAE standard proposal contributions to 3GPP and holds 181 LTE essential patents, becoming No.1 and account for 34% of the infrastructure vendors in LTE essential patents.

Huawei Deploys World’ s First TD-LTE Trial Network for 2010 Shanghai World Expo [Nov 13, 2009]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced the deployment of world’ s first TD-LTE/SAE trial network for China Mobile. This new network with an actual download speed of up to 29Mb/s will be used for 2010 Shanghai World Expo.

Wang Jianzhou, Chairman and Chief Executive Officer of China Mobile, said: “This state-of-the-art network covers the whole site of 2010 Shanghai World Expo, which will fully demonstrate the capability of TD-LTE technology.”

As the only vendor able to provide end-to-end TD-LTE/SAE solutions, Huawei deployed the TD-LTE radio access network and SAE core network for China Mobile, and delivered chipsets and terminals. These infrastructures and terminal devices enabling high definition (HD) video transmission, HD video monitoring, HD video-on-demand (VOD) and mobile Internet will support the live broadcasting and security for the coming events.

“TD-LTE/SAE technologies with the advantage of low latency and high spectrum efficiency are getting increasingly more recognition from operators and telecom organizations.” said Li Changzhu, Vice President of China Marketing, Huawei , “As most of the significant technical innovations will be showcased during the Expo, this TD-LTE/SAE trial network is one of the most exciting innovations during the event. This network adopted Huawei’ s integrated LTE solution of FDD and TDD technologies, as well as the SAE core network which is being used in world-leading operators’ network modernization.”

Huawei has been appointed to deploy the world’ s first LTE network for TeliaSonera and Europe’ s largest LTE network for Telenor. Over 20 LTE/SAE trials have been deployed by Huawei for global operators.

Huawei’ s SAE Solution Successfully Completes TD-LTE Tests for 2010 Shanghai World Expo [Nov 5, 2009]

Huawei, a leader in providing next-generation telecommunication solutions to operators around the world, today announced that it’ s SAE (System Architecture Evolution) solution has successfully completed all the mandatory and optional tests on the TD-LTE trial network for 2010 Shanghai World Expo. The tests were conducted by China Mobile Research Institute and Shanghai Mobile, a subsidiary of China Mobile, to evaluate the LTE/SAE solutions among all the leading vendors for deploying the commercial TD-LTE network for the coming event.

The core network tests verified the functionalities of MME (Mobility Management Entity), Serving Gateway, PDN Gateway and the HSS (Home Subscriber Server). According to the result of the tests, Huawei is the only vendor with its commercial SAE solution that has successfully passed all 119 tests.

“We are honored to have the opportunity to participate in 2010 Shanghai World Expo, and fully confident to support its success through our advanced LTE/SAE network solutions.” said Wang Gang, Director of China Marketing, Huawei Core Network, “The excellent performance of Huawei SAE solution in this test reflects our deep understanding and continuous investment in LTE technology, and the long-term commitment of providing world-leading mobile broadband solutions to operators worldwide.”

As a partner of Shanghai Mobile, Huawei provided end-to-end network solutions for the TD-LTE trial, including mobile network, SAE, terminals, chips and transmission systems.

Huawei Demonstrates World’s First Handoff Tests Between TD-LTE Base Stations [May 14, 2009]

Huawei Technologies Co., Ltd. (“Huawei”), a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that the company was selected by the Next Generation Mobile Network Congress to provide the new end-to-end TD-LTE/SAE solution for field testsat its conference held in Beijing on May 11-12, 2009. World leading operators including Vodafone, NTT DoCoMo, AT&T, China Mobile, TI and TeliaSonera participated in the conference and jointly discussed the development of future networks.

As the sole provider of the network for testing, Huawei conducted a live demonstration of the world’s first handoff tests between TD-LTE base stations with a 100-percent success rate. These field tests demonstrated the ability of Huawei’s network to successfully deliver the handoff or handover technology that facilitates phone calls between different technologies. The completion of the test marks a major forward step in the evolution of TD-LTE technology.

“Due to the rich resources in the TDD spectrum, the application of TD-LTE is currently of great interest to operators both in China and beyond. We are very confident about the future of TD-LTE which is one of the major next-generation mobile broadband platforms.” said Wan Biao, President of Huawei Wireless Product Line. “Huawei is committed to promoting the development of LTE through its proven expertise and extensive global application experience.”

Huawei also showcased the world’s first multi-user access and multi-cell handoff tests based on a TD-LTE network at the event. Different terminalswere used to simultaneously demonstrate the services based on TD-LTE, such as VOD, video phone and VOIP.

Huawei has been researching LTE technology since 2004 and, in December 2008, was awarded with the world’s first LTE commercial contract, with Teliasonera. By the end of March 2009, Huawei had submitted more than 2,500 LTE/SAE applications and has contributed 20 percent of all the patents in LTE field.

The brilliant debut TD-LTE elevates experience at World Expo [by Huawei, April 28, 2011]

The World Expo is a great event to showcase the best achievements of human civilization, including telecommunications advancement. At the 2010 World Expo Shanghai, TD-LTE was first introduced, pointing to the future of 4G mobile broadband in China.

TD-LTE’ s global debut

As one of the world’ s largest mobile operators, China Mobile is a global partner of the Shanghai World Expo. In 2009, it selected vendors including Huawei to deploy the World Expo TD-LTE Demo Network, the first of its kind in the world, signifying the debut of TD-LTE in the largest mobile communications market in the world.

Straddling both sides of the Huangpu River between the Nanpu Bridge and Lupu Bridge, the Shanghai Expo Park covers an area of 5.28 square kilometers and is the largest expo park in history. The Expo is also likely to be the largest World’ s Fair ever in terms of visitor numbers as Expo organizers expect about 70 million visitors during its 6-month run.

To showcase the latest achievements in and promote the TD-LTE industry, China Mobile invited dozens of well-known vendors and providers to join in the demo project in 2009. Thanks to its outstanding overall test results, the strength of its end-to-end solutions and its rich experience in commercial/pilot LTE network deployments outside China, Huawei was selected as a key partner to exclusively build the outdoor TD-LTE network in the Expo Park and provide support and guarantees for outdoor service demonstrations.

For this largest TD-LTE demo network in the world, Huawei has provided an end-to-end TD-LTE solution including base stations, EPC core network equipment, CPE terminals, and a service platform. With 17 outdoor distributed TD-LTE base stations, the solution has delivered complete outdoor coverage for the entire Expo Park and even on the Huangpu River that runs through the Park.

Fabulous TD-LTE experience

On the Shanghai Expo TD-LTE Demo Network, a series of great mobile broadband services are demonstrated, showcasing the advanced TD-LTE capabilities and features, especially the diversified mobile high-definition (HD) video applications that require high-end network and even end-to-end system capabilities.

For various groups such as friendly users and security personnel, the Demo Network facilitates mobile broadband services such as HD video conferencing, multi-way HD video surveillance, portable video surveillance, instant shoot & transfer, and high-speed wireless network access. HD video conferencing, portable video surveillance, and instant shoot & transfer services are all carried over the mobile network for the first time, marking a major breakthrough in mobile broadband development.

Mobile HD conference brings people closer

Video conferencing is efficient while saving time and money. Its increased popularity means that video conferencing systems are expected to be reliable and render high-definition images.

Under normal circumstances, video conferences are held at fixed venues, where access is provided through fixed broadband to meet bandwidth and latency requirements. Yet, it is increasingly desirable for professionals and businesspeople to do business on the move and they expect to have the same real-time communication experience with HD conferencing as they do face to face.

The China Mobile TD-LTE Demo Vehicle in the Expo Park cruises visitors at speeds of up to 40 km/h (speed limit for the Expo Park and nearby roads). Another TD-LTE test vehicle running on the Pudong South Road outside the Expo Park connects users to the Huawei Telepresence HD conferencing system and the TD-LTE network covering the Expo Park. Users are able to experience clear imaging (with delays of less than 1s and with no frame loss nor mosaic), and complete audio/video synchronization. Videoconference participants evidently can get nearly the same experience as in a meeting room and have been duly impressed.

HD video surveillance ensures a “Safe Expo”

The Shanghai World Expo has rapidly attracted visitors from home and abroad. Since the end of May, the average number of visitors has hit 400,000 each day with more than 500,000 per weekend day. All of the venues, roads, pavilions, combined with buses and Huangpu River ferries present major safety and security challenges. To ensure the safety of visitors, an HD video surveillance system has been put in place.

Traditional video surveillance systems are simply not enough. Buses, ferries and people move. In typical mobile video surveillance systems, image definition is often sacrificed for mobility. Mobile video monitors often adopt CIF or QCIF for code resolution and the image definition is usually 1/4 or even 1/16 of standard definition.

The introduction of the mobile HD video surveillance system over the TD-LTE network clears up the images. The system enables the images collected by mobile video monitors to reach the level of standard definition by improving the video quality up to 16 times, allowing for the display of 720P/1080P HD videos. The system not only renders videos with quality comparable to a fixed network but also satisfies other mobility and higher bandwidth needs in terms of end-to-end experience and application scenarios.

Real-time full-range monitoring contributes greatly to effectively ensuring visitor safety and the TD-LTE video surveillance system covers the entire Expo. The ferries on the Huangpu River, buses on the land, and surrounding high-rise buildings are all closely monitored with video specific for various scenarios.

During surveillance planning, China Mobile and Huawei ingeniously introduced portable video transfer. Both TD-LTE CPE (portable TD-LTE terminal) and devices such as batteries and video codecs are put into a backpack weighing about 3kg. Carrying the pack on his/her back, a single person can handhold a portable DV camera, shoot a scene and then transfer the video back to the surveillance center in real time over the TD-LTE network for evaluation. In this manner, the TD-LTE mobile HD video surveillance system perfectly serves the needs of the Shanghai Expo by equally emphasizing all aspects, large or small. General surveillance is thus maintained as more specific and detailed information is scrutinized. Furthermore, portable video transfer is so flexible that it can be deployed whenever needed.

Instant shoot & transfer revolutionizes news gathering and broadcast

Instant shoot & transfer is one of the featured TD-LTE services and it wowed the visitors to the ITU’ s 145th anniversary celebration at the Expo Park on May 17th and the Shanghai NGMN Industry Conference in early June. Hailed as a pioneering move at the Expo, it also represents a technical revolution and a turning point in the history of news video.

Mr. Bill Huang, General Manager of the China Mobile Research Institute, remarked that this service was regarded by the media as a revolution in news gathering and broadcastin his keynote speech at the “TD-LTE Demo Night” on June 2nd at the Shanghai World Financial Center.

Traditional live broadcasting requires the construction of live broadcast facilities like a newsroom or a live broadcast truck. That is often demanding and difficult to do on site, take time to set up and test, and is vulnerable in emergencies. Cost is another major concern, for a set of integrated equipment costs a million or more USD, and with the satellite transmission link, the system really costs an arm and a leg.

By comparison, the TD-LTE-based instant shoot & transfer service replaces the newsroom or broadcast truck with portable integrated equipment that is easy to operate and maintain and costs much less. If we take O&M into account, instant shoot & transfer can definitely save a lot of labor and transmission link costs.

The TD-LTE HD instant shoot & transfer service was jointly demonstrated by China Mobile, Huawei, and other partners, attracting wide attention at the NGMN Industry Conference in the Shanghai World Financial Center. The TD-LTE HD instant shoot & transfer equipment consisted of professional HD cameras, audio and video codecs, and TD-LTE terminals. China Mobile put a large screen in the booth, which played the scenes captured by HD cameras. Video content was encoded and decoded locally and the video code streams were up to the HD standard, with no blurry images, frame loss, or mosaic. The delay of images from the camera to the screen ranged between one and two seconds, and, according to the on-site presenter, the delay was mainly caused by the codecs and would be less than 20ms if the videos were transferred from LTE network equipment. If the codec capability was further improved or a more professional codec was adopted, the end-to-end delay would be so small that you would hardly notice it, said the interpreter. Through the indoor TD-LTE network, the system can directly upload and download HD video code streams without any server platform. News can be collected, edited, and broadcast even while mobile, without location restrictions.

All roads lead to Rome

Skype, YouTube, and Facebook are moving into mobile applications and services. Smart terminals such as the iPhone, BlackBerry, OPhone, iPAD, and Kindle are leading the market. The app store has become a common model for mobile communications giants, and the entire industry is molding the mobile Internet era.

In the future, a more diverse range of mobile Internet terminals will be available for increasingly more users to enjoy better mobile Internet services. In addition, new-generation mobile broadband networks, mostly evolving toward LTE, will provide the infrastructure to guarantee that the mass users embrace the mobile Internet.

In December 2009, TeliaSonera, the largest telecoms operator in Scandinavia and the Baltic countries, launched the world’ s first commercial LTE network in Oslo and Stockholm supplied by Huawei and Ericsson respectively. According to data released by the Global Mobile Suppliers Association (GSA), there were 110 operators committed to LTE network deployments in 48 countries and regions as of June 2010, and 22 LTE networks will be in commercial service or at trial stages by the end of 2010. These operators include traditional GSM/CDMA operators such as Vodafone, T-Mobile, and NTT DOCOMO, CDMA operators like China Telecom and Verizon Wireless, and GSM/TD-SCDMA operators like China Mobile. LTE has no doubt become the common choice for most mobile operators in their migration to mobile broadband.

From the Shanghai Expo Park, TD-LTE’ s brilliant debut marks the beginning of China’ s journey toward LTE mobile broadband.

II. ZTE

ZTE Achieves World’s First TD-LTE and 2G/3G Handover Interoperability Test [July 11, 2011]

TE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, today announced that it has completed the industry’s first interoperability test (IOT) between TD-LTE terminals and GSM/UMTS/CDMA EV-DO networks.

This is the first IOT between a multi-mode TD-LTE terminal and non TD-LTE networks. The success of the test is significant for the entire TD-LTE ecosystem, proving that TD-LTE devices can work seamlessly with existing GSM, UMTS and CDMA EV-DO networks as well as with new LTE FDD and TD-LTE networks. It is expected to promote the convergence of TD-LTE and existing networks, and speed up TD-LTE network deployments.

“The test shows that devices for TD-LTE networks are close to market availability, and that ZTE’s extensive TD-LTE expertise ensures that our existing 2G and 3G networks are able to handle traffic from TD devices,” said Mr. Wang Shouchen, general manager of ZTE TD products.

Most operators have mature 2G/3G networks with huge numbers of subscribers. TD-LTE networks offer operators significant opportunities in terms of using available and often low-cost spectrum, but they need to work concurrently and seamlessly with existing networks and with the next generation of multi-mode devices.

Multi-mode terminals will allow the leading LTE operators to provide global roaming with existing 2G and 3G networks, thus reducing the market entry barriers for LTE development. TD-LTE multi-mode terminals have therefore been one of the core capabilities operators have been concerned about, and are an important indication of TD-LTE ecosystem maturity.

As of April 2011, ZTE had deployed TD-LTE trials and commercial networks for 25 leading global operators in 15 countries covering Europe, India, CIS, Asia-Pacific and Southeast Asia, and has been actively carrying out interoperability testing with other terminal vendors.

ZTE is also a major provider of LTE multi-mode terminals that meet the requirements of different network operators, and can provide a full range of LTE devices including data cards, inbuilt modules, tablet PCs and smart phones.

ZTE to deliver world’s first LTE TDD/FDD dual-mode infrastructure equipment to Hi3G [April 1, 2011]

Operator Hi3G plans to build world’s first LTE TDD/FDD dual-mode network in Sweden and Denmarkto offer next generation mobile broadband networks to its customers with data speeds of up to 100 Mbps.

29 March 2011, Shenzhen – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced the company will deliver LTE infrastructure equipment to operator Hi3G, which plans to build the world’sfirst LTE TDD/FDD dual-mode networks in Sweden and Denmark. As part of the deal, ZTE will also deliver 3G infrastructure equipment to upgrade the operator’s 3G network.

The delivered base stations will be based on ZTE’s Uni-RAN SDR (Software Defined Radio) technology, which enables Hi3G to support all viable mobile standards and frequency bands, housing both the upgraded 3G network and the two versions of LTE: TDD and FDD. The SDR technology also makes it possible for Hi3G to perform future upgrades of its infrastructure without acquiring new base stations.

Peder Ramel, CEO at Hi3G, said: “We have chosen ZTE for additional 3G 900/2100 rollout and for LTE mobile broadband networks in Sweden and Denmark because of the possibility to house three different mobile standards in the same physical infrastructure and the low cost of ownership. Furthermore, ZTE advanced LTE dual-mode solutions and quick consignment responses really meet our requirements.”

Zhu Jinyun, President of ZTE Europe and America, commented: “The agreement with Hi3Gfully demonstrates that ZTE has a great capability to provide solutions for end-to-end multi-mode convergence systems. It further strengthens our position in LTE in Western Europe and will be followed by additional LTE-infrastructure deals, which will be announced shortly.”

ZTE Corporation is a leading supplier in both the TDD and FDD markets. ZTE has worked on more than 20 LTE projects in high-end markets including Spain, the United States and Hong Kong, with established operators such as Telenor, CSL (under Telstra Group), Etisalat, SingTel, Commnet Wireless/NTUA, and China Mobile. ZTE has to date rolled-out 15 LTE commercial networks and over 65 LTE trials in Europe, North America, and the Middle East and Asia Pacific areas.

Thomas Granström, Managing Director for ZTE in the Nordics, said: “The deal with Hi3G signals a real breakthrough for ZTE in the advanced Nordic market, demonstrating our capabilities in providing high speed mobile broadband network infrastructures. The agreement with Hi3G comes on top of a successful year, including several handset launches throughout the region and additional infrastructure deals with Nordic operators in foreign markets.”

Hi3G builds world’s first LTE TDD/FDD dual-mode network

Hi3G expects to develop its Swedish and Danish networks for mobile broadband during 2011and will introduce LTE technology with very high data speeds of up to 100 Mbps for its customers.

Hi3G will exploit its spectrum resources by rolling out two versions of LTE. The two versions are usually referred to as Frequency Division Duplex (FDD) and Time Division Duplex (TDD). The main benefit of the TDD version is that it can make full use of TDD spectrums to maximize data throughput and enhance user experience. Hi3G has acquired 50MHz of TDD spectrum in Sweden and 25 MHz of TDD spectrum in Denmark.

The TDD version of LTE is also used in other parts of the world, for example China. The use of TDD LTE by China will facilitate the world-wide availability of TDD LTE terminals.

The E-Plus Group, China Mobile and ZTE collaborate for TD-LTE field trial in Germany [Feb 17, 2011]

The E-Plus Group will launch a TD-LTE field trial in Germany in Q1 2011. The trial is based on 2.6 GHz spectrum that E-Plus acquired in the German spectrum auction. China Mobile, with its leading position and rich experience in the operation and maintenance of TDD networks, will provide technical support to this trial. ZTE will provide base stations developed on the advanced SDR platform and co-siting solution of LTE FDD/TD-LTE, which is a breakthrough in the industry.

The E-Plus Group is the third largest mobile network operator in Germany. The E-Plus Group has been one of the most innovative mobile operators for years. After revolutionizing the mobile voice market for larger user groups E-Plus is now opening the mobile data market for the masses with low-priced data tariff schemes and the roll-out of a HSPA+ network with speeds up to 21.6 Mbps. On top of the high speed mobile data network roll out, E-Plus will now test TD-LTE in the field. The E-Plus Group is one of the founding members of the Next Generation Mobile Networks (NGMN) Alliance.

The E-Plus Group and ZTE agreed and scheduled a field trial program for 2011consisting of several streams to investigate the capabilities of ZTE’s commercial SDR equipment and best utilisation of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.

China Mobile claims the largest number of mobile subscribers in the world. From TD-SCDMA to TD-LTE, China Mobile is devoted to promoting TDD industry being equipped with rich experience in TDD network deployment. Furthermore, China Mobile is pro-active in TDD technology globalization and the convergence of the TD-LTE and LTE FDD industry by seeking cooperation with overseas operators in Europe, Asia, America and Australia.

With the joint effort of the E-Plus Group, China Mobile and ZTE, this trial will not only demonstrate the latest progress of TD-LTE/LTE FDD convergence in standards and industry development, but also lay an excellent ground for the full commercialization of TD-LTE.

ZTE Secures 18 TD-LTE Contracts Globally [Feb 16, 2011]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced it had secured 18 TD-LTE contracts globally, cementing its place as an international and first-class TD-LTE equipment provider.

These contracts are for trial and commercial networks in 12 countries across Europe, the Commonwealth of Independent States (CIS, or the former Soviet Republics) and the Asia Pacific region, including India.

Since entering the TD-LTE field in 2005, ZTE has achieved sustainable development on TD-LTE wireless systems, chipsets and terminals. So far it has established eight TD-LTE R&D centers in America, Europe and the Chinese cities of Shenzhen, Shanghai, Xi’an and Nanjing. The company has over 4000 elite researchers developing wireless systems, core network products and terminal products simultaneously.

Each year ZTE commits 10% of its revenue developing frontier technologies. It now owns 7% of the world’s essential LTE patents, and is one of the companies holding the largest number of independent Intellectual Property Rights (IPR) in the world.

ZTE is actively cooperating with various parties in the TD-LTE ecosystem. The company collaborates on Interoperability Tests (IOT) with mainstream chipset providers such as Qualcomm, Innofidei, Altair, Sequans and ST-Ericsson. It also works to promote the development of the TD-LTE platform and standards. In October 2009, ZTE teamed up with Innofidei to successfully demonstrate the industry’s first multi-vendor TD-LTE high-definition video service at ITU Telecom World 2010 in Geneva.

At the end of 2010, ZTE was the first in the industry to launch Qualcomm chipset based TD-LTE terminals and achieved a download rate of nearly 100Mbps.

In January 2011, consulting company Frost & Sullivan released a research report on the Time-Division Duplex (TDD) market, evaluating the competitiveness of companies in the TD-LTE field based on four criteria including technical accumulation, product convergence, product progress and system openness. In this report, ZTE was ranked No.1 in terms of competitiveness.

ZTE Launches World’s First Commercial TD-LTE Base Stations [June 7, 2011]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced that it has launched the industry’s first commercial TD-LTE base stations: BBU- B8300 and RRU- R8962. The debut of the two base stations is timely to help accelerate TD-LTE industry commercialization.

ZTE’s B8300 TD-LTE base station is based on ZTE’s SDR unified platform and can be upgraded from TD-SCDMA mode to TD-LTE or TD/TD-LTE dual mode. It fully supports a smooth evolution of carrier networks to LTE and lowers their total cost of ownership.

ZTE’s R8962 TD-LTE base station supports two channels with 20W transmission power each – the highest transmission power and power efficiency in the industry. It incorporates compact size, the most lightweight design in the industry, and meets the growing industry demand for energy savings and emission reduction. Operators will benefit from its innovative product features for multi-mode functions of TD/TD-LTE, as well as its multi-band 2.3/2.6 GHz and multi-scenario indoor/outdoor applications.

To support the ever-growing needs for next-generation network infrastructure, ZTE has deployed more than 250,000 SDR base stations across the globe, including in mainland China, Hong Kong, India and Chile. The company successfully constructed a TD-LTE network for the Shanghai World Expo Press Center, and the company’s 2G/3G dual-mode base station built upon the SDR platform was nominated for a GSMA Global Mobile Award in 2009.

ZTE has taken the lead in LTE development and has achieved significant breakthroughs in the industry. To date, the company has deployed five commercial LTE networks and built 40 LTE trial networks for leading telecom operators in Europe, North America, Asia-Pacific and MEA. With an aim to advance the telecommunications market into 4G technologies, ZTE will continue to drive innovation and introduce market-leading and cost-efficient solutions to the market.

ZTE Completes the World’s First TD-LTE S1/X2 Interface Conformity Test [June 1, 2010]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, and China’s Ministry of Industry and Information Technology (MII) today announced they have completed the world’s first S1/X2 Interface Conformity test, an important development under MII’s initiatives for the deployment of TD-LTE.

ZTE was invited by MII to conduct the trial in advance of mass-scale system testsdue to the company’s leading position and rich experience in TD-LTE. The test was a success and passed all requirements set forth by MII for the S1/X2 Interface Conformity Test, making ZTE the first in the world to successfully complete the related trials.

ZTE has been actively involved and participated in TD-LTE tests organized by MII and China Mobile. The Company has realized many industry firsts in TD-LTE industry trials. It achieved TD-LTE’s highest theoretical peak download rate in November 2009. In December 2009, ZTE became the first vendor to pass the essential test set for TD-LTE single systems organized by the MTNET Lab of MII followed by the industry’s first field tests.

In addition, in January 2010 ZTE passed the TD-LTE field test held by MII making it the first in the industry to submit a TD-LTE field test report to The LTE/SAE Trial Initiative(LSTI). Subsequently, ZTE successfully completed an indoor MIMO performance test in cooperation with China Mobile, underlining its key role in promoting TD-LTE industry-chain development.

Within LTE network infrastructure, the S1 interface is the communications interface between LTE eNB (base station) and EPC (packet core network), while the X2 interfaces between eNB and eNB. The success of the S1/X2 Interface Conformity test validates that ZTE’s TD-LTE system, including its wireless and core network, fully comply with 3rd Generation Partnership Project(3GPP)standards, and has laid down a solid foundation for the test of S1/X2 IOT.

ZTE has taken the lead in the TD-LTE development and has attained significant achievements in the industry. To date, ZTE has deployed five commercial LTE networks and built 40 LTE trial networks for leading telecom operators in Europe, North America, Asia-Pacific and MEA. With an aim to advance the telecommunications market into 3.5/4G, ZTE will continue to drive innovation and introduce innovative and cost-efficient solutions to the market.

ZTE Partners with CMCC for Ground-Breaking TD-LTE Indoor MIMO Networking Performance Test [March 30, 2010]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced that, together with CMCC (China Mobile Communications Corporation), it has successfully completed a TD-LTE indoor MIMO networking performance test in Beijing– producing the world’s first batch of TD-LTE performance evaluation data on indoor single/dual path cell throughput. The testing also produced data for indoor multi-UE circumstances.

The test evaluated the construction solution of indoor distribution systems, including whether a two-path system can achieve significant better performance than a single path system under different scenarios and user distributions. Organized by CMCC, ZTE based its results on comparative tests under several different scenarios. The testing found that, under diversified testing circumstances, a TD-LTE two-path indoor distribution system downlink throughput does show dramatic improvements compared with single path indoor distribution system. The data is valuable for the industry for TD-LTE networking construction and efficiency.

ZTE and CMCC partnered earlier this year for the Huairou field test organized by MIIT(China’s Ministry of Industry and Information Technology). ZTE is also taking great initiative in studying and testing MIMO utilization probability in indoor open environments.

ZTE has established itself as a leader in the TD-LTE industry through tests and partnerships across the globe. ZTE and CMCC will jointly deploy a TD-LTE operation network for the Expo News Centre at the World Expo Shanghai 2010. The TD-LTE network will provide high-speed wireless network services to reporters and expo staff from around the world. To date, ZTE has successfully engaged in over 10LTE projects worldwide with leading telecoms including Telstra CSL, Telefonica, SingTel, CMCC, and more.

ZTE Achieves Industry-High TD-LTE Network Downlink Speed of 130Mbps [Dec 11, 2009]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions,today announced that it has successfully demonstrated its TD-LTE network technology and achieved a downlink speed of 130Mbps, the highest level in the industry. ZTE is the first company to reach the theoretical limit of TD-LTE throughput in downlink. Utilizing third-part terminal testing tools, ZTE conducted the tests using ZTE system products including EPC, eNodeB, etc in Guangzhou in November.

ZTE has created a simple and smooth transition path for operators to move to LTE through its mature and stable SDR Base Stations. Networks can be upgraded from TD-SCDMA to TD-LTE or to TD-S/TD-LTE dual-mode through a simple software upgrade, saving operators time and money. At the present time, there are more than 200,000 sets of ZTE SDR products running throughout the world, including in China mainland, Hong Kong, India, Chile and other countries. ZTE’s SDR platform Base Station was honored with a prestigious nomination by GSMA Global Mobile Award for the Best Network Technology

In May 2010, ZTE and China Mobile will jointly deploy a TD-LTE network at the Expo News Center for the World Expo Shanghai 2010. The TD-LTE network will provide high-speed wireless network services, enabling staff and reporters around the world to experience the excellent voice, video and data services of LTE technology during the World Expo.

Based on ZTE’s continuous investment and development in the TD-SCDMA field, ZTE has made great strides in TD-LTE field. During a TD-LTE proof of concept (PoC) test organized by China Mobile, Vodafone and the Ministry of Industry and Information (MII), ZTE scored many of the top marks in the industry testing. As the first vendor globally to report testing results for LTE TDD IODT technology to the Long Term Evolution/System Architecture Evolution Trial Initiative (LSTI) in September 2009, ZTE is effectively driving the development of IODT between the TD-LTE industry and chip manufacturers.

ZTE has more than 2,000 engineers and experts dedicated to the innovation and network development of LTE technology. ZTE is a leading pioneer in LTE terminal research and development, working with operators to driving the global adoption of LTE technology.

ZTE is First to Pass Third-Party UE TD-LTE Test [May 13, 2009]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions today announced that it is the first company to successfully complete and pass the TD-LTE Phase I test together with key industry players including China Mobile, Vodafone and the Ministry of Industry and Information of China on April 15, 2009. The TD-LTE test measures high bandwidth network capacity.

This significant achievement was made known during yesterday’s NGMN (Next Generation Mobile Network) Conference held in Beijing, China. As one of the key highlights of the conference, TD-LTE attracting numerous key industry participants including China Mobile, Vodafone and other leading members of NGMN.

In ZTE’s TD-LTE Phase I test, the results indicated that the downlink sector reached the theoretical peak rate of 39Mbps with a 10M bandwidth, at the same time, ZTE became the first company in the industry to realize 20M bandwidth support. In the trials, ZTE adopted third party test UE (User Equipment) and the downlink peak rate attained TM500’s upper limit of 61.228 Mbps. Upgradable through terminal, the system is designed to support a downlink rate of up to 82.3 Mbps in the future.

Adopting a unified SDR business platform for its system equipment in the test, ZTE is the first vendor to feature pre-business EPC (Evolved Packet Core) to complete the total system tests, highlighting its leading position in commercial applications. As an industry first to use third party UE to complete the tests, ZTE achieved its expected trail results, including zero fault, zero malfunction and 100% connection rate: another technology breakthrough that highlights ZTE’s winning customer offerings with its excellent system stability.

This TD-LTE test also makes ZTE the first company to complete a performance test under a 350Km/h high-speed mobile channel model, reaching the best theoretical value. In fact, in May 2009, ZTE was the first industry vendor to pass China Mobile Institute’s GSM/TD-SCDMA/TD-LTE joint platform testfurther underlining its leading edge in the TD-LTE area.

To date, as one of the leading advocates of the TD industry chain, ZTE has a taskforce of over 3,200 TD R&D engineers with more than 900 devoted to TD-LTE. The Company has submitted more than 400 LTE papers to the 3GPP Conference to further propel and inspire industry development. Through continuous and extensive investments in R&D and manpower, ZTE has been at the forefront of LTE fully demonstrating its leadership in both LTE and TD-LTE.

ZTE Stakes Out Its LTE Credentials [May 20, 2011]

China’s ZTE Corporation has made a huge investment in developing TDD-LTE equipment and solutions, and now it is looking to reap the benefits by winning contracts in the European and American markets.

“Our target is to achieve over 15 commercial LTE contracts in Europe in 2011,” says Li Jian, ZTE’s general manager, CDMA and LTE Product Line. It’s a bold statement of intent and a measure of the increasing confidence the Chinese telecommunications equipment and network solutions provider now has on the world stage. The reasons for this confidence are threefold, according to Li Jian. “It is because ZTE will continue to contribute 10% of its revenue to investment in LTE development. We already have 4,000 engineers and research staff, so this is a very special team devoted to LTE development.”

ZTE has spent a total of RMB 13 billion over the last two years on R&D alone, and the company maintains 15 R&D centres in Sweden, the U.S., France, India, Shenzhen, Shanghai and Beijing.

Li Jian says: “Also, ZTE is very mature in LTE knowledge with a full end-to-end LTE solution and technology. ZTE is the leading software defined radio (SDR) vendor. We came up with SDR, so we think we have a strong ability to lead on this new platform and that’s why we are confident we can win 15 contracts in Europe this year.”

“The third reason ZTE is confident it will hit this target,” she continues, “is that ZTE can customise its LTE solution to whatever the operator’s requirements are. So, operators can deploy ZTE’s LTE equipment on top of their existing infrastructure. This will save on deployment costs and maintenance costs in the evolution from one generation to the next.”

Opinions vary, depending on  what is being measured and how, but a report in February by Open Vista Consulting ranked ZTE among the top three vendors for LTE infrastructure, alongside Ericsson and Nokia Siemens Networks, with 21% of the LTE market.

ZTE is beginning to ride a wave of interest in TDD-LTE, the alternative to FDD-LTE, which is being heavily promoted by the world’s largest operator, China Mobile. The manufacturer is one of several companies that have worked closely with China Mobile over the last three years to develop TDD-LTE.

This commitment has led to a startling jump in influence in terms of the number of international patent applications from ZTE (and indeed, China generally). According to the World Intellectual Property Organisation, ZTE jumped from 23rd place to second in 2011 for international patent applications.

By the end of December 2010, ZTE had a total of 1,863 patent applications registered. It has declared 235 essential LTE patents to ETSI, which accounts for 7% of the total so far. This has propelled ZTE into becoming one of the main holders of basic LTE patents.

The continued investment in R&D has also begun to translate into wider commercial success beyond China despite the economic downturn of the last two years. The percentage of overseas revenue grew from 44% in 2006 to 54.1% in 2010 (US$5.7bn).

Global revenue from principal operations reached US$10.6bn in 2010, up 21% on 2009. Net profit was US$490.7m. According to a Frost & Sullivan report “Insights on 2010 Market Performance”, ZTE had the highest compound annual growth rate among the top vendors―28% between 20082010 and 37.4% between 20062010. It secured contract sales worth up to RMB100 billion in 2010.

“We have 15 commercial contracts and 65 trials around the globe,” reports Li Jian. “But this year ZTE will focus on the high-end markets, such as Europe and the USA. We are looking for deeper and more intensive penetration of these markets.”

Li Jian says that some of the contracts will be undertaken by ZTE itself, while others will be won in partnership. But ZTE will provide the end-to-end solutions.

ZTE showcased its range of LTE base stations at Mobile World Congress in February as well as a number of innovations. Along with its distributed base stations, it also introduced what it claims is the industry’s first all-in-one micro base station, as well as the all-in-one indoor/outdoor macro base station.

The rollout of LTE is beginning to take off in Europe and America, but it is still early days. “In 2009, there were some LTE deployments in European and US markets, but it grew very slowly,” says Li Jian.

“But in 2010, we found that in the second half the trials by networks of LTE were becoming rapid. This year, the operators in Europe and the USA will increase the development of LTE, but it will not reach the explosion point.”

Problems with the availability of frequency and licences for LTE are delaying deployment. The UK 800MHz and 2.6GHz auction will not take place until 2012, for example. The lack of LTE-enabled devices other than dongles for laptops is also slowing down the arrival of LTE. But 2012 is likely to be the year it really takes off.

“Different countries will have different situations,” says Li Jian. “It’s true that some, if not most, are still benefitting from their 2G and 3G networks, but the development of LTE will not be stopped now. The advantages of fast mobile broadband will benefit the operators and enhance their operational capabilities.”

The advantage for ZTE is that over the last year many operators have started to show a keen interest in the TDD-LTE option. FDD and TDD are very similar and can share the same chip. However, FDD uses two frequency bands and TDD just one.

There is more TDD frequency available, it is less used and generally speaking cheaper to get for the operators. And for WiMAX operators, it is easier to convert to TDD-LTE than FDD-LTE should they wish to do so. Hence, there is growing attraction of TDD for mobile carriers. What ZTE’s SDR platform provides is a multimode platform that allows operators to choose FDD or TDD as and when they are ready to do so. But as Li Jian points out it does more than that―it can support the existing technologies too.

“Our base band units (BBUs) connect all the different technologies, so they can support GSM, UMTS, TD-LTE, FDD-LTE and WiMAX in one platform,” says Li Jian, “and that will provide a big cost saving for operators.”

Operators will continue to run their 2G and 3G networks in conjunction with LTE. But ZTE’s SDR platform allows them to invest in new network infrastructure now that will cut network CAPEX and OPEX and future proof them for LTE when it comes on line.

“SDR is a uniform platform―you can do anything on it. You can satisfy any operator requirement, so that will help them save money and satisfy their business development needs at the same time. We try to reuse existing facilities and systems as much as possible,” says Li Jian.

An example of this is the work ZTE has done with Hong Kong mobile operator CSL. In November 2010, CSL launched a commercial LTE/DC-HSPA+ network. “CSL has two GSM, two UMTS and two LTE bands, but it is all based on one platform―you no longer need separate big sized GSM units,” says Li Jian.

The availability of a wide and affordable range of LTE-enabled devices is also critical for the future of the LTE market. But Li Jian says that the development of terminals is growing very fast, “so ZTE will try to develop and provide a total solution to solve the problem and make it easier for operators.”

Besides terminal products, equipment and services, ZTE has invested in chip development. At the end of 2010, ZTE was the first to launch a Qualcomm chipset based on TDD-LTE terminals and achieved a download rate of nearly 100Mbps. “It is this kind of thing that makes ZTE different from other vendors,” says Li Jian.

The rollout of LTE may be protracted, especially in Europe, but ZTE looks to be well positioned to grab a large share of the market, if the number of operator trials it is picking up is anything to go by.

Recent ZTE technology advances showcased at MWC:

LTE-A CoMP prototype: ZTE unveiled its LTE Advanced coordinated multi-point (CoMP) transmission prototype. It incorporates a number of key technologies, such as carrier aggregation, multiantenna enhancement, relay technology and multipoint transmission. CoMP technology ‘dramatically increases’ throughput on the edge. Commercial LTE-A products are due out in 2012.

Multiple Access Binding (MAB) solution: Dubbed the all-join, the MAB solution shows how a UE can bind multiple RATs simultaneously. ZTE demonstrated the binding of LTE and Wi-Fi on a single UE through unified authentication. It then bound multiple access technologies using integrated serving gateway (ISGW) built on the advanced service router platform. MAB is being touted as an effective way to solve data storm issues and provide high quality services by introducing synergy between their access technologies.

C-RAN wireless networking solution: ZTE claims that the cloud of radio access network (C-RAN) solution, first introduced by China Mobile, will lower the total cost of ownership of wireless networks by 40%. It involves the development of a new generation of wireless access networks using centralised processing, collaborative radio, real-time cloud infrastructure, clean system (green wireless access network architecture) and cloud computing.

III. Ericsson (+ acquisition of divested Nortel assets strategic for Ericsson)

CEO sees markets beyond traditional telecom [May 5, 2011]

  • Determined to grow faster than market in traditional segments
  • Addressable market valued at USD 350 billion
  • New customer segments to address

Today at Ericsson’s (NASDAQ:ERIC) Capital Markets Day in Stockholm, President and CEO Hans Vestbergmade remarks on the telecom industry and Ericsson’s position.

“We have just seen the beginning of the massive data growth, driven by smartphones and other mobile devices. These new devices provide operators with new charging capabilities. As a consequence, we are beginning to see signs of changed operator tariffs and pricing models aligned to consumer needs, especially for mobile broadband services and data usage. It’s important for us to follow this development,” Vestberg said.

Ericsson estimates show that the number of mobile broadband users will increase from today’s 400 million to 3.5 billion in 2015.

“These fundamental industry drivers require operators’ to focus on network quality and efficiency. In addition, in the developed world, where the networks have been up and running for quite a long period, we will see operators modernize their infrastructure not only to meet increased data usage, but also to reduce power consumption and use frequencies better. These are challenging operations, requiring deep technology understanding and services capabilities as well as insights on advanced business support systems and understanding of consumer needs in order be successfully performed.”

Vestberg continued by stating that the operator environment is becoming more complex in competition for consumers who are becoming increasingly advanced and demanding.

“We will see new business models emerging and so called coopetition among operators, where they will share platforms and build scale together around applications.”

Vestberg, who took on the position as President and CEO as of January 1, 2010, continued by elaborating on Ericsson’s industry leading position in mobile networks, services and multimedia as well as platforms and handsets via the joint ventures ST-Ericsson and Sony Ericsson. Vestberg said that converged networks is an area where the company intends to continue investing.

“We see good long-term growth opportunities in our traditional segments and we are determined to further strengthen our position and continue to grow faster than the market. Less than 5% of the world’s population has access to 21 Mbit/s or more in the air, at least 1.5 million installed GSM radio base stations must be replaced and in addition we see continued need for services in fields such as consulting, system integration and managed services. We estimate that our addressable market, including joint ventures, is worth USD 350 billion.”

“However, we are not satisfied with our position today and we see new markets to address. The capabilities we have in place today enable us to address customers also beyond traditional telecom operators such as cable and TV-companies, governments, healthcare, transport and utilities. These are industries where there is a huge need for telecommunication services,” Vestberg stated.

Vestberg was also joined by Mr. Manoj Kohli, CEO of Bharti Airtel. Mr Kohli attended via a video link from India and elaborated on the challenges Bharti meets in India where the number of mobile subscriptions grow by 20 million only in March, making India the fastest growing market in the world.

Mats H Olsson, head of Ericsson in China and North East Asia as well as Angel Ruiz, head of Ericsson North America, also joined via video link.

“Mainland China added more than 100 million subscriptions last year and we expect similar numbers in 2010”, said Mats H Olsson. “Non-voice revenues now make up 30% of Chinese operators’ total revenues and one of our focus areas for this year is deployment of TD-LTE in China and LTE in Japan and Korea.  We also see further opportunities to increase our GSM footprint in mainland China”.

“We have taken every LTE-contract announced in North America and with the acquisition of Nortel we now have access to 50% of the marketwe couldn’t approach previously. We take nothing for granted, but we are ready to move to the next level and achieve even greater market leadership”, said Angel Ruiz,

Other Ericsson executives on stage were: Executive Vice President and CFO Jan Frykhammar, Chief Strategist Douglas L Gilstrap, Chief Technology Officer Håkan Eriksson, Executive Vice President and head of business unit Networks Johan Wibergh, head of business unit CDMA Mobile Systems Rima Qureshi, head of business unit Global Services Magnus Mandersson and head of business unit Multimedia Jan Wäreby.

NOTES TO EDITORS:

Bio and photos of Ericsson Group Leadership Team

Read more about the joint ventures Sony Ericsson and ST-Ericsson

Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room

Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company’s portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices. 

Ericsson is advancing its vision of being the “prime driver in an all-communicating world” through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.

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Ericsson received award for best contribution to LTE R&D [May 23, 2011]

  • Ericsson received Informa LTE Award at LTE World Summit in Amsterdam
  • Recognized for the best contribution to research and development for LTE
  • Recognition for Ericsson’s strong R&D asset

Ericsson envisions a networked society where everything that can benefit from a connection will have one. LTE is a key enabling technology for making that shift. Hence, relevant and continuous investments in R&D within LTE continue to be essential for Ericsson.

On Tuesday May 17, Ericsson received Informa’s LTE Award at LTE World Summit in Amsterdam for best contribution to R&D for LTE. The award recognizes the contribution towards the research and development of LTE regarding investments made into R&D and research projects undertaken and how the R&D activities have had a positive impact on making LTE commercially successful.

As a result of its extensive investments in R&D and field experience of LTE deployments, Ericsson has had the highest impact on the released LTE specifications and expects to hold 25 percent of all essential patents in LTE. Ericsson has been trusted to supply the large majority of the commercial LTE networks globallyincluding the world’s first commercial LTE network as well as the world’s largest commercial installation of LTE to date. LTE today covers 200 million people and Ericsson networks enable 130 million of those to enjoy a LTE service.

To secure a fast and smooth commercial rollout, Ericsson focuses on supporting user experience being the preferred and largest LTE chipset verification partner and introducing Self Organizing Networks (SON) in the LTE environment. The Ericsson solution for Self Organizing Networks (SON) is crucial for the quick deployment of commercial LTE, offering customers standardized “plug and play” networks with a high degree of automation, saving time while improving performance.

Including all technology areas, Ericsson holds a total of 27 000 granted patents, employs more than 18,000 persons in R&D units spread over 17 countries.

Ericsson wins LTE standards award [May 27, 2010]

Ericsson Research has won an award for the best contribution to LTE standards at the Informa LTE Awards 2010, adding another feather in its 4G technology cap.

Held in conjunction with the LTE World Summit 2010 in Amsterdam that ended on May 19, the LTE Awardscelebrated growth and success across the industry.

Ericsson has had a leading role in developing LTE as a 4G technology from its initial research cooperation to the finalized releases of the standard. It beat competitors in the Best Contribution to LTE Standards category, in which contenders were required to state the contribution they have made to the development of standards and specifications for LTE technology.

“It is really great that our contribution has been acknowledged,” says Mikael Höök, director of Radio Access Technologies within Ericsson Research. “Before the standardization even started we were very active in defining the framework for it. Once it started within 3GPP, we have been very active and shown a huge commitment to it.”

“We need to remember that LTE is continuously evolving and will do so for many years, and that includes standardization of new features and new functionalities in LTE. To maintain our leadership, we need to remain focused and innovative, evolving standards and ensure that our products are unique to make sure we have the solutions that operators are asking for,” he says.

David Astély, Joakim Bergström, Erik Dahlman and Stefan Parkvall from Ericsson Research were acknowledged for their roles in producing high-quality LTE specifications, enabling an early commercial launch of LTE mobile broadband. This has helped generate global industry trust and commitment to the LTE technology.

Next generation LTE, LTE-Advanced or LTE Rel-10 is the next step in radio access technology [Dec 21, 2010]

Next generation LTE, LTE-Advanced

Authors: Stefan Parkvall, Anders Furuskär, Erik Dahlman

Whatever the name – next generation LTE, LTE-Advanced or LTE Rel-10 – the next step in LTE evolution allows operators to introduce new technologies without putting existing investments at risk.

LTE radio access technology is continuously evolving to meet the requirements of regulators, operators and users. The first fully commercial and operational 4G mobile broadband systems, currently being deployed, are based on the first release of LTE, 3GPP Rel-8, which was finalized in 2008. Rel-9, finalized at the end of 2009, added support for broadcast/multicast services, positioning services, and enhanced emergency call functionality, as well as enhancements for downlink dual-layer beam forming.

Today, the main focus of 3GPP is the next generation of LTE evolution, Rel-10, often referred to as LTE-Advanced. Rel-10 further extends the performance and capabilities of the LTE radio access technology, and meets all of the requirements for IMTAdvanced as defined by ITU.

In October 2010, ITU completed the assessment of submissions for global 4G mobile wireless broadband technology, LTE Rel-10 (submitted by 3GPP) was one of two technologies accorded the official designation of IMT-Advanced.

This article provides a brief introduction to IMT-Advanced, followed by a description of the extensions to LTE introduced as part of 3GPP Rel-10. It concludes with system-level results that illustrate the ability of LTE Rel-10 to fulfill and even surpass the IMT-Advanced requirements.

The complete article (pdf)

Long Term Evolution (LTE) – An Introduction [June 1, 2009]

The internet generation is becoming used to having broadband access everywhere. Of the estimated 3.4 billion people who will have broadband by 2014, about 80 percent will be mobile broadband subscribers – and the majority will be served by High Speed Packet Access (HSPA) and Long Term Evolution (LTE) networks.

People can already browse the internet or send e-mails using HSPA-enabled notebooks, replace their fixed DSL modems with HSPA modems or USB dongles, and send and receive video or music using 3G phones. With LTE, the user experience will be even better. It will enhance more demanding applications such as interactive TV, mobile video blogging, advanced games and professional services.

In capacity terms, LTE already meets key 4G requirements, providing downlink peak rates of at least 100Mbit/s. Its infrastructure is designed to be as simple as possible to deploy and operate, through flexible technology that can be used in a wide variety of frequency bands.

LTE will also be available in a wide range of terminals; not only in next-generation mobile phones but also in notebooks, ultra-portables, cameras, camcorders, mobile broadband routersand other devices that benefit from mobile broadband.

Download White Paper

Long Term Evolution (LTE) – An Introduction (pdf)

Strategic cooperation with Datang for mobile technology development in China [April 20, 2010]

      • Richer mobile communications for millions of Chinese consumers
      • Research, development and commercial cooperation within TDD technology

Ericsson (NASDAQ:ERIC) has signed a memorandum of understanding to establish strategic cooperation with Datang Telecom Technology & Industry Holdings Co. Ltd. (Datang) to jointly develop advanced TDD solutions, with the goal to deliver richer mobile communications to consumers in China and around the world.

As part of the memorandum of understanding, Ericsson will start integrating Datang’s current best-in-class TD-SCDMA radio access network equipment into its own 3G mobile communications offering.

More than six million mobile users in China are already enjoying mobile services through this technology. TD-LTE being the next generation of TD-SCDMA technology is also being tested pre-commercially to satisfy the growing appetite for higher speed and richer applications of the Chinese mobile subscribers in due time.

Ericsson set up a joint research center with Datang in Beijing as early as January 2008 to carry out research cooperation in TDD technology. The strategic cooperation formed now takes the relationship between the two parties to a substantially new level.

The strategic cooperation aims to leverage Ericsson’s leading position in global mobile communications, its unique experience from global LTE commercial deployment and its common platform for FDD and TDD, as well as Datang’s industry-leading expertise in TDD technology. Such move will increase the industrialization capabilities of TDD solutions by achieving economies of scale, improve the interoperability of operators’ 2G/3G/4G networks, and provide support to a successful commercial launch of TD-LTE in China in the near future.

“Leveraging our global leadership position in LTE, we have been firmly committed to evolving TD-SCDMA to TD-LTE,” said Mats H Olsson, Head of Region China & North East Asia of Ericsson. “Now we are further strengthening that commitment by this strategic cooperation with Datang. Our promise remains the same: we will always strive for providing the best TDD products and services to the Chinese consumers and to the world.”

Chen Shanzhi, Vice President and CTO of Datang Telecom Technology & Industry Group said: “Ericsson is the world-renowned telecom solutions and services provider. The cooperation between Ericsson and Datang to jointly develop TDD products and solutions demonstrates the recognition of Datang’s innovative R&D results, industrialization and market capabilities in the TDD field from mainstream telecom suppliers in the world. We believe that our joining forces will drive the globalization of TD-SCDMA and play an important role in the industrialization of TD-LTE in the long run.” Chen Shanzhi continued, “The strategic cooperation that we establish now will help both parties to fully leverage on our respective resources so that we can together provide products and services that meet the requirements of China Mobile.”

Datang Telecom Group is the initiator of the 3G mobile communication TD-SCDMA international standard, the owner of its core intellectual property rights and an important promoter of its industrialization.

Ericsson supplies largest LTE network [Dec 14, 2009]

TeliaSonera has launched the world’s first and largest commercial Long Term Evolution (LTE) service in Stockholm, supplied by Ericsson. This historic rollout was completed well ahead of plan on December 14, 2009. TeliaSonera’s mobile broadband commercial network in Stockholm is the fastest and largest in the world to date.

Carl-Henric Svanberg

Carl-Henric Svanberg, President and CEO of Ericsson, says he is excited about this historic moment: ”The new era of mobile broadband has just begun today. With LTE, so-called 4G, your mobile broadband experience is moving to unequalled levels. The LTE speed gives you an absolutely effortless feeling of broadband access.”

Kenneth Karlberg, President and Head of Mobility Services, TeliaSonera says: ”We are very proud to be the first operator in the world to offer our customers 4G services. Thanks to the successful cooperation with Ericsson we can offer 4G to our customers in Stockholm earlier than originally planned.”

LTE, the next generation of mobile communication technology, is designed for transferring huge amounts of data in a most cost and energy efficient way, optimizing the use of frequency band and realizing fiber-like access speed over the air. With decreased latency, consumers can now enjoy whatever service is available online – high definition (HD) video, network games, you name it – effortlessly and on the move.

LTE

Downtown Stockholm is now covered by the Ericsson LTE network, making it the largest LTE deployment to date. TeliaSonera’s subscribers are the first to have access to the LTE service by commercially available Samsung LTE dongles.

Ericsson has completed commercialization of its LTE products, and larger-scale production is ready for further deployment. Interoperability has been tested thoroughly with many different devices in different

LTE rollout for AT&T in the US [Feb 10, 2010]

  • AT&T to build LTE network
  • Ericsson named as key supplier for LTE equipment
  • Commercial launch scheduled to begin 2011

LTE is the latest step in a wireless evolution that Ericsson (NASDAQ: ERIC) began with AT&T over two decades ago and is part of AT&T’s ongoing efforts to innovate and invest in mobile broadband.

AT&T serves more than 85.1 million customers and has seen mobile broadband growth of more than 5,000 percent over the past three years. Smartphones are just one example of innovation made possible by investment in mobile broadband.

After extensive testing of equipment from multiple suppliers in lab and field environments, AT&T chose to extend its existing relationship with Ericsson for LTE deployment. The agreement also complements AT&T’s strategy to continue to boost the speed and performance of 3G mobile broadband to deliver the best, most advanced customer experience for customers throughout the evolution toward LTE.

As part of this multi-year agreement, Ericsson expands its key supplier role with AT&T by delivering LTE network equipment as well as a full suite of services to design, deploy and optimize the LTE network.

AT&T plans field trials of LTE technology later this year, and commercial deployment is scheduled to begin in 2011.

“The announcement is an important step forward in our ongoing mobile broadband strategy, which is focused on delivering the best possible combination of speed, performance and available devices for customers at every level of technology deployment,” said John Stankey, president and CEO, AT&T Operations. “AT&T has a key advantage in that LTE is an evolution of the existing GSM family of technologies that powers our network and the vast majority of the world’s global wireless infrastructure today.”

Hans Vestberg, president and CEO, Ericsson said: “Our ability to work together to meet the demands of a rapidly changing market has been a crucial element in gaining AT&T’s continued confidence. We will work just as hard to secure a smooth rollout of LTE and support AT&T in introducing new consumer and business services moving forward.”

AT&T previously named Ericsson as a key supplier for wireline accessproducts and services. Ericsson can offer wireline solutions to accelerate AT&T’s ability to bring new broadband-based products and services to market.

To date, Ericsson has signed commercial LTE contracts with four other major global operators, two of which are in the United States, the world’s fastest growing LTE market.

LTE, the next generation of mobile communication technology, enables the fast transfer of huge amounts of data in an efficient and cost-effective way, optimizing the use of the frequency spectrum. With increased speed and decreased latency, consumers can enjoy a wide range of applications (real-time web, online gaming, social media collaboration and video conferencing) effortlessly and while on the move. LTE will meet the demands of new and enhanced mobile internet applications of the future.

Ericsson has been driving open standards and has had the highest impact on the released LTE specifications. Ericsson expects to hold 25 percent of all essential patents for LTE, making it the largest patent holder in the industry.

Notes to editors:

[a small country operator example]
Ericsson selected by Magyar Telekom to modernize its network [May 4, 2011]

  • Market leader Magyar Telekom in Hungary chooses Ericsson as sole partner to modernize its radio access network and prepares for LTE
  • New  contract involves total overhaul of radio access network

With ever-increasing demands for data services and a strong commitment to providing the best available network performance and quality to its customers, leading Hungarian operator Magyar Telekom, of the Deutsche Telekom Group, has chosen Ericsson (NASDAQ: ERIC) to undertake a complete overhaul of its radio access network. The overhaul will drastically decrease Magyar Telekom’s operational costs while further expanding mobile broadband service performance and coverage.

Ericsson will transform Magyar Telekom’s 2G and 3G networks using the multi-standard RBS 6000 radio access network, which will also be ready for 4G/LTE functionality once licenses have been allocated.

Istvan Maradi, Chief Technology Officer of Magyar Telekom says:,”Our partner, Ericsson, will make sure our network will meet the most demanding expectations and help us to stay on top in Hungary. It is also makes sense for us to prepare our network for easy introduction of LTE functionality by using Ericsson’s multi-standard network.”

Nils de Baar, Head of Global Account for DT Group at Ericsson, says: “We believe in Magyar Telekom’s wise decision to introduce a multi-standard technology when the aging 2G network needs a strong boost. This will bring both a reduction in OPEX and a better user experience, while also preparing the network to meet the ever-growing demand for mobile broadband. This is a prestigious obligation for us and we will make every effort to meet our customers’ expectations.”

Ericsson Hungary celebrates 100 years in Hungary in 2011. Ericsson today has the largest R&D operation in the country. Emil Nilsson, Head of Customer Unit Central Europe and President of Ericsson Hungary, said: “This great win further emphasizes the importance of our long presence in the country and strong focus on technology leadership. With the agreement with Magyar Telekom, Ericsson has teamed up with the market leading operator once again in Hungary.”

Notes to editors:

Ericsson Hungary

Ericsson Hungary celebrates 100 years in Hungary in 2011. Ericsson Hungary believes it is the task of Ericsson to participate in developing the future of mobile and broadband internet communication with innovative solutions and to play a determinant role in forming the world of telecommunications through its activities related to the most advanced, leading research and technologies. Hungary, and the R&D center operating in the country, are to play a leading role in achieving this – of the almost 1500 employees in the country, more than 1000 are working in research and development, making Ericsson the largest company in Hungary dealing with telecom research and development. This year’s centenary milestone will be marked by two special achievements: one is the continual development of R&D activities, the other is today’s announcement that the market-leading operator has chosen the market leader in technology.

http://www.ericsson.com/yourbusiness/telecom_operators/mobile-broadband

Vestberg foresees industry shift [Feb 15, 2010]

  • 3 billion new mobile broadband subscriptions in next five years
  • Industry focus on network capacity and quality
  • Innovation, speed and flexibility key success factors

Speaking at Ericsson’s (NASDAQ:ERIC) press conference at the GSMA Mobile World Congress in Barcelona Hans Vestberg, President and CEO, said, “Our future success will be determined by the ability to see beyond technology, stay ahead of our customers and solve their problems before they are even aware of them. This will require us to always put our customers first, always have the best competence and to drive innovation throughout the customer relationship.”

“In the past decade telecommunications have become the nerve system of the world. The number of mobile subscriptions worldwide has grown sixfold to 4.6 billion. Mobile broadband has had its breakthrough and we believe that we will see 3 billion new mobile broadband subscriptions in the next five years.

“We forecast that by 2015 mobile PC subscriptions will have grown six times and the traffic generated will grow more than 50 times compared with the end of 2009. In the same time period smartphone devices will grow four times and the traffic they generate will have grown more than 25 times. The rapidly increasing traffic puts a focus on network capacity and quality.

“We envision 50 billion connected devices by 2020. Patients will be remotely connected to hospitals, trucks will be online with logistics centers for efficient routing, and city students will be connected to students in rural villages halfway around the world. Several operators have already established machine-to-machine departments to meet these demands. In this development we have to move from traditional telecom to IP, from hardware to software and from network rollouts to network evolution.

“HSPA and 4G/LTE will enable the 50 billion connected devices and the continued traffic growth. Several leading operators have given us the confidence to deliver their 4G/LTE networks and we have established technology leadership and scale advantages.

“The overall LTE package with products and services is very competitive. We have taken these products to mass production and can manufacture on a large scale, which is a clear competitive advantage. The competition is fierce, but we can have grounds for having good self-confidence.”

Following the recent win with AT&T Ericsson now supplies its 4G/LTE solutions to operators that have a total of some 240 million subscribers. In the audience was Mr John Donovan, Chief Technology Officer at AT&T who briefly commented on his company’s plans for its LTE buildout and the reason for selecting Ericsson as its LTE equipment supplier.

Hans Vestberg continued, “In 2009 we significantly strengthened our position in North America. The rationale for the acquisition of the Nortel CDMA and LTE operations was to extend our footprint, expand customer relationships and gain a profitable CDMA business in North America. As the integration progresses, we are seeing opportunities for further CDMA business also outside North America.

“As the industry again moves into new territories, our role as a vendor must shift from just being a technology and services supplier to being a business enabler. Operators are looking to us to manage the increasing complexity of their networks so they can concentrate on enhancing the user experience. Our continued success in this area shows the value of our services offering. We will have to combine our strong technology leadership position and services capabilities to provide value to our customers. We have to drive innovation in both technology and business models,” concluded Vestberg.

Hans Vestberg, President and CEO

Notes to editors:

Ericsson part of winning bid for Nortel’s patent portfolio [July 1, 2011]

  • Ericsson’s contribution to transaction USD 340 million
  • Expected to close in the third quarter of 2011

As announced separately by Nortel Networks Corporation, a consortium of certain technology companies, of which Ericsson (NASDAQ:ERIC) is a part, emerged as the winning bidder for all of Nortel’s remaining patents and patent applications for a cash purchase price of USD 4.5 billion. The transaction is subject to approval by the United States and Canadian Bankruptcy Courts.

The Nortel patent portfolio comprises approximately 6,000 patents and patent applications from information and communication technologies (ICT) industry, including telecommunications, internet search and social networking. It covers mobile, LTE and data networking as well as optical, internet, service provider, semiconductors and other patent portfolios.

Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson, says: “The Nortel patent portfolio reflects the heritage of more than 100 years of its R&D activities and includes some essential patents in telecommunications and other industries. We believe the consortium is in the best position to utilize the patents in a manner that will be favorable to the industry long term.”

SEB Enskilda is acting as financial advisor to Ericsson in the transaction.
Notes to editors:Read more at www.nortel.com/ [Nortel Announces the Winning Bidder of its Patent Portfolio for a Purchase Price of US$4.5 Billion: … After a multi-day auction, a consortium emerged as the winning bidder with a cash purchase price of US$4.5 billion. The consortium consists of Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony. …]

Ericsson closes the Acquisition of GDNT, China [May 12, 2011]

  • Ensures continued development of CDMA and GSM businesses
  • All assumed agreements will be honored and fulfilled
  • Adds R&D, manufacturing and services capabilities

Ericsson (NASDAQ:ERIC) has today completed the asset purchase agreement to acquire certain assets of the Guangdong NortelTelecommunications Equipment Company Ltd (GDNT). This acquisition gives Ericsson talented R&D engineers, manufacturing and services professionals, as well as manufacturing and research facilities in the China region and ensures continued development of the CDMA & GSM businesses.

“With these new assets, we can even better support our customers globally,” said Rima Qureshi, Senior Vice President and Head of Business Unit CDMA Mobile Systems. “Our new and agile employees complement the existing R&D, manufacturing and services capabilities of our business.”

Mats H Olsson, President of Ericsson China & North East Asia said: “The completion of this acquisition reaffirms our strong commitment to the China market, while greatly enhancing our existing R&D, manufacturing and services capabilities in the region. I’m very happy to welcome this new source of energy into the Ericsson family and look forward to its continuous contribution to the development of GSM and CDMA markets not only here in the region, but also in the world.”

Today’s closing follows the announcement on December 1, 2010, that Ericsson was entering into an asset purchase agreement to acquire certain assets of the Guangdong Nortel Telecommunication Equipment Company Ltd (GDNT).

Some 1,000 former GDNT employees, including approximately 550 R&D engineerswill be integrated in to the Ericsson group over the coming months and will work under the Ericsson brand effective today. Former GDNT customers gain a business partner dedicated to the ongoing support of their networks and the assurance of a seamless transition. Manufacturing and Services will operate as a separate business entity, known as “Ericsson (Guangdong Shunde) Communications Company Limited, effective immediately.

SEB Enskilda acted as Ericsson’s sole financial advisor in the transaction.

Notes to editors:
Pictures of quote: www.ericsson.com/ericsson/press/photos/management.shtml

Acquisition of GDNT, an R&D and services company in China [Dec 1, 2010]

  • Secures continued development of CDMA and GSM businesses in China
  • Complements existing R&D and services capabilities in the region
  • Purchase price is USD 50 million

Ericsson (NASDAQ:ERIC) has today signed an agreement to acquire certain assets of the Guangdong Nortel Telecommunication Equipment Company Ltd (GDNT). The purchase is structured as an asset sale at a cash purchase price of USD 50 million on a cash and debt free basis, subject to final balance sheet adjustments. The transaction is also subject to customary regulatory approvals and other conditions.

GDNT is a leading research, development and manufacturing company based in China and an important supplier to Ericsson following the acquisitions of the CDMA and GSM businesses of Nortel. GDNT was founded in 1995 as a joint venture between Nortel, a Canadian Telecommunications Company and local Chinese corporations and telecom operators.  The transaction also includes R&D facilities, manufacturing facilities as well as support and customer service in China. Some 1,100 employees, including approximately 550 R&D engineers will be integrated in to the Ericsson group over the coming months.

“We are very happy to welcome this key competence into Ericsson’s newest business unit,” said Rima Qureshi, head of Ericsson’s CDMA Mobile Systems unit.  “We have built a strong foundation with the CDMA & GSM teams acquired from Nortel. With these new assets, we take control of our business by acquiring capabilities for the continued development of the CDMA & GSM businesses.”

“The acquisition greatly complements our existing R&D, manufacturing and services capabilities in the region,” said Mats H Olsson, President of Ericsson China & North East Asia. “It will no doubt allow us to provide even better support to our customers across the region who are serving one of the largest GSM and CDMA subscriber bases in the world.”

The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

Notes to editors:

Pictures of Rima Qureshi and Mats H Olsson:
www.ericsson.com/ericsson/press/photos/management.shtml

Acquisition of Nortel’s stake of the joint venture LG-Nortel [April 21, 2010]

  • Strengthened ability to serve the Korean market and reach new customers
  • Second largest installed base with all leading Korean operators
  • Purchase price is USD 242 million on a cash and debt free basis
  • New name of the joint venture will be LG-Ericsson

Ericsson (NASDAQ:ERIC) has today entered into a share purchase agreement to acquire Nortel’s majority shareholding (50%+1 share) in LG-Nortel, the joint venture of LG Electronics and Nortel Networks. The transaction is subject to customary regulatory approvals.

This acquisition will significantly expand Ericsson’s footprint in the Korean market and provide Ericsson with a well established sales channel and strong R&D capability in the country. Furthermore, the acquisition will provide Ericsson with an industrial base and the ability to build new customer relationships.

The joint venture includes important contracts with Korean operators such as KT, LG Telecom and SK Telecom.

LG-Ericsson will become one of the major telecom players in Korea.

“Korea is one of the largest telecom markets with advanced end-user demand of new services. A strengthening of our position through the collaboration with our new partner LG Electronics will enhance our position for future technology shifts such as LTE,” said Hans Vestberg, President and CEO of Ericsson.

“LGE is pleased to have Ericsson as a new partner in this joint venture,” said Yong Nam, Vice Chairman and CEO of LG Electronics. “Ericsson will provide global industry experience and technical expertise that will benefit both customers and employees. We look forward to a fruitful future collaboration.”

“LG-Ericsson is expected to provide the Korean market with leading technology and customer supports in cooperation with Ericsson’s Global Leadership in Telecommunication market. We are excited by the new perspective for our company.” said Jae Ryung Lee, CEO of LG-Nortel.

The joint venture was established in 2005 through the contribution by LG Electronics of its telecommunications systems business and by Nortel of its Korean distribution business. The focus of the joint venture has been to develop and market large scale telecommunications systems such as WCDMA, CDMA and LTE for telecom service providers in Korea as well as enterprise products and services. In 2009, LG-Nortel generated approximately USD 650 million of sales and had 1,300 employees.

The joint venture will continue to be headquartered in Seoul, Republic of Korea.

In July 2009, Ericsson and the Korean government agreed to cooperate in growing a green ecosystem based on 4G technology. The competence in LG-Ericsson is expected to contribute to this initiative.

The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

Acquisition of substantially all the assets of Nortel’s GSM business completed [April 1, 2010]

  • Emphasizes commitment to North American market
  • Accretive to Ericsson’s earnings within a year

Ericsson (NASDAQ:ERIC) has completed the acquisition of Nortel’s North American GSM business. Today’s closing follows the announcement on November 25, 2009, that Ericsson had entered into an asset purchase agreement for these assets.

“The addition of Nortel’s skilled GSM experts adds additional depth to Ericsson’s newest business unit,” said Rima Qureshi, head of Ericsson’s CDMA unit.  “The CDMA team acquired from Nortel late last year has built a strong foundation already, and this new acquisition places us in a great position to support our growing list of North American and International customers.”

“The completion of this acquisition strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada and shows our commitment to the market,” said Angel Ruiz, Head of Ericsson North America. “The skill and experience the Nortel employees bring to Ericsson will help us continue to provide exceptional services to our customers.”

The acquisition includes the transfer of important GSM business with North American operators and further strengthens Ericsson’s ability to serve North America’s leading wireless operators.  More than 350 employeesfrom Nortel will be integrated in the Ericsson group over the coming months.

The acquired operations are expected to be accretive to Ericsson’s earnings within a year after closing.

Ericsson’s bid for Nortel’s GSM assets was made together with Kapsch CarrierCom AG of Austria. Under the two transactions Ericsson is acquiring certain assets of Nortel’s GSM business in North America and Kapsch is acquiring certain assets outside North America.

In 2009, Ericsson also acquired Nortel’s CDMA and LTE assets in North America.

Notes to editors:Photos of Rima Qureshi and Angel Ruiz:
www.ericsson.com/ericsson/press/photos/management.shtml

Ericsson to acquire Nortel’s North American GSM business [Nov 25, 2009]

Ericsson (NASDAQ:ERIC) was today selected as successful bidder to acquire certain assets of the Carrier Networks division of Nortel relating to Nortel’s GSM business in the US and Canada. The purchase is structured as an asset sale at a cash purchase price of USD 70 million on a cash and debt free basis, subject to adjustments. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to approval by courts in the US and Canada and customary regulatory approvals and other conditions.

Ericsson’s bid for Nortel’s GSM assets was made together with Kapsch CarrierCom AG of Austria. Under the agreements, Ericsson is acquiring certain assets of Nortel’s GSM business in North America while Kapsch is paying USD 33 million to acquire most of the remaining assets outside North America.

Ericsson acquires an installed GSM base, which expands its North American footprint. The acquisition further strengthens Ericsson’s ability to serve North America’s leading wireless operators, which now benefit from the strength of the combined resources in an experienced and financially strong company.

Along with our recent acquisition of Nortel’s CDMA and LTE assets, the transaction emphasizes Ericsson’s commitment to the North American market and strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada” said Hans Vestberg, incoming President and CEO of Ericsson. “Our Ericsson family will be once again enriched by the addition of the valuable Nortel employees.”

The agreement includes the transfer of important GSM business with North American operators such as AT&T and T-Mobile. Under the agreement Ericsson will offer employment to approximately 350 employees from Nortel. Nortel’s North American GSM operations generated approximately USD 400 million in 2008.

Ericsson’s North American business generated SEK 17.9 bn (USD 2.7 b) of sales in 2008, mainly from GSM and WCDMA equipment and associated services. Together with the recently announced acquisition of CDMA and LTE assets as well as the Sprint services agreement, the acquisition makes North America the largest geographical segment within Ericsson and encompasses some 14,500 employees, up from 5,000 at the beginning of 2009.

The acquired operations will contribute top- and bottom-line additions to Ericsson. The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing.

Consummation of the transaction is subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

Notes to editors: Picture of Hans Vestberg:
www.ericsson.com/ericsson/press/photos/management.shtml

Previously announced information on Ericsson’s acquisitions of Nortel assets:
www.ericsson.com/ericsson/press/releases/20090725-1330882.shtml
www.ericsson.com/ericsson/press/releases/20091113-1354893.shtml
www.youtube.com/ericssonpress#p/u/7/D3yDHV9O_5o

Ericsson closes the Acquisition of Nortel’s Multiservice Switch business [March 11, 2011]

  • High level of data experience in key locations
  • Customers gain a stable, committed partner
  • The Multiservice Switch business will operate under the Ericsson brand as of today

Ericsson (NASDAQ:ERIC) has today completed the asset purchase agreement to acquire Nortel’s Multiservice Switch business. This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the platform for the recently acquired CDMA and GSM units.

“We are gaining a solid business with a significant installed base and technology that complements our existing Ericsson portfolio. In key locations around the globe, we grow our data capability with experienced and talented people.” said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.

An important part of the CDMA ecosystem, the Multiservice Switch business offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions, previously acquired from Nortel. The Multiservice switches, to be called PPX henceforth, serve a valuable need for a multiplicity of services that the backbone network provides today for our customers.

Today’s closing follows the announcement on September 25, 2010, that Ericsson was entering into an asset purchase agreement for substantially all of the assets of Nortel’s Multiservice Switch Business.

The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systemsover the coming months and will work under the Ericsson brand effective today. Former Nortel customers gain a stable partner committed to the ongoing evolution of their networks and the assurance of a seamless business transition.

SEB Enskilda acted as Ericsson’s sole financial advisor in the transaction.

Notes to editors: Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml

Acquisition of Nortel’s Multi-Service Switch business [Sept 25, 2010]

  • Confirms commitment to CDMA portfolio
  • Strengthens R&D and services capabilities within CDMA
  • Cash purchase of USD 65 million

Ericsson (NASDAQ:ERIC) has today entered into an asset purchase agreement to acquire Nortel’s Multi-Service Switch business (MSS). This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the MSS platform for the recently acquired CDMA and GSM units.

An important part of the CDMA ecosystem, MSS offers the sale and support of data networks and switching platforms for core networks within the recently acquired wireless and carrier voice divisions. MSS serves a valuable need for a multiplicity of services that the backbone network provides today for our customers.

The purchase is structured as an asset purchase at a cash purchase price of USD 65 million on a cash and debt free basis, subject to adjustments. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to court approval and customary regulatory approvals.

“Today’s announcement is further evidence of our commitment to our CDMA portfolioas we continue to strengthen our in-house R&D and services muscle to deliver on the innovation, collaboration and support that our customers have come to expect from us.” said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.

Consummation of the transaction is subject to approval by the relevant Bankruptcy Courts and the satisfaction of regulatory and other conditions.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

Notes to editors:Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml

Ericsson strengthens global position with completion of Nortel acquisition in North America [Nov 13, 2009]

Ericsson (NASDAQ: ERIC) today completed its acquisition of substantially all of Nortel’s CDMA business and LTE assets in North America. With this acquisition, Ericsson enhances its leading global telecommunications equipment supplier position and will further its quest to bring high-speed data connectivity to people on the move.

The Nortel acquisition, on the heels of important breakthrough contract wins for Ericsson in North America, positions Ericsson as the leading provider of telecommunications technology and services in the United States and Canada.

“Separately, our two companies played leading roles in freeing voice telephony from its fixed limitations,” said Hans Vestberg, Ericsson’s incoming president and chief executive officer. “Together, we will do the same for broadband – make it mobile and bring the benefits of high-speed data connectivity to the majority of the world’s population”.

“This deal, along with our recently announced services and LTE agreements, demonstrates the importance of the North American market to Ericsson. Our strength in the region proves to our global customers that we are capable of continuing to provide the best equipment and services, in a scaleable and efficient way,” said Vestberg.

In terms of sales, North America will now be Ericsson’s largest region.According to Angel Ruiz, head of Ericsson’s North American operations, the acquisition significantly expands Ericsson’s footprint in North America, particularly as the region is emerging as an early adopter of LTE technology.

Ericsson will enjoy new access to North American CDMA customers and can better support CDMA networks that will transition to LTE, “said Ruiz.

In addition to the talented people Ericsson gains through the combination, it will also benefit from intimate knowledge of Nortel’s CDMA customers and their networks. In turn, these operators gain a stable partner committed to the ongoing evolution of their networks, and the assurance of a seamless transition.

“I look forward to working with the more than 2,500 highly skilled colleagues in North America and China arriving from Nortel,” said Magnus Mandersson, president of Ericsson CDMA Operations. Combined with the transition of employees in the recent Sprint deal, Ericsson now has some 14,000 employees in North America, making it the company’s second largest market based on number of employees.

The acquisition includes the transfer of important CDMA contracts with North American operators including Verizon, Sprint, U.S. Cellular, Bell Canada, Telus and Leap, as well as LTE assets, certain patents and patent licenses relating to CDMA and LTE. Nortel’s customers will also benefit from the continued support of Nortel’s installed CDMA base and the migration path to LTE.

Today’s closing follows the announcement on July 25, 2009, that Ericsson was entering into an asset purchase agreement of USD 1.13 b. for these assets, subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.

The former Nortel staff will be integrated into the Ericsson group over the coming months and the entity will work under the Ericsson brand beginning today.

The results for these operations will be consolidated by Ericsson on a pro-rata basis from the closing date proportionally within segments Networks and Professional Services. The report for the fourth quarter 2009 will be the first accounts including the new entity.

Notes to editors:
A video interview with Hans Vestberg available in our broadcast room on: www.ericsson.com/press/broadcastroom

Ericsson to acquire majority of Nortel’s North American wireless business [July 25, 2009]

Ericsson (NASDAQ:ERIC) has today entered into an asset purchase agreement to acquire the parts of the Carrier Networks division of Nortel relating to CDMA and LTE technology in North America. The purchase is structured as an asset sale at a cash purchase price of USD 1.13 b. on a cash and debt free basis. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to court and customary regulatory approvals.

Ericsson acquires an installed base and a healthy business that provides major operators CDMA technology and support services. In addition, the acquisition strengthens Ericsson’s ability to serve North America’s leading wireless operators in the evolution to LTE. The acquisition significantly expands Ericsson’s footprint in North America, particularly as this region is emerging as an early adopter of LTE technology. The acquisition also provides Nortel’s customers with a strong and reliable supplier for the future, many of which have expressed support for this acquisition.

“Acquiring Nortel’s North American CDMA business allows us to serve this important region better as we build relationships for the future migration to LTE. Furthermore, by adding some 2,500 highly skilled employees, of which about 400 are focused on LTE research and development, Ericsson reinforces and expands a long-term commitment to North America. This deal, along with our recently announced Sprint service agreement, truly positions Ericsson as a leading telecoms supplier in North America,” said Carl-Henric Svanberg, President and CEO of Ericsson.

The agreement includes important CDMA contracts with North American operators such as Verizon, Sprint, U.S. Cellular, Bell Canada and Leap, as well as LTE assets, certain patents and patent licenses relating to CDMA and LTE. Nortel’s customers will also benefit from the continued support of Nortel’s installed CDMA base and the migration path to LTE.

Nortel’s North American CDMA operations generated approximately USD 2.0 b. in 2008, with robust profitability from a good product mix, which includes a significant amount of services. Going forward, research and development costs are expected to be relatively low in CDMA compared with other technologies.

Ericsson’s North American business generated SEK 17.9 (USD 2.7) b. of sales in 2008, mainly from GSM and WCDMA equipment and associated services. When coupled with the recently announced Sprint services agreement, this acquisition makes North America the largest region within Ericsson and encompasses some 14,000 employees.

The robust financial profile of the acquired operations will contribute significant top- and bottom-line additions to Ericsson. The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing. Magnus Mandersson, presently head of Ericsson Northern Europe, is appointed President of Ericsson CDMA operations, and Richard Lowe, Nortel, is appointed Chief Operating Officer.

“Our two companies share a long-standing commitment to technological excellence and innovation, and we look forward to welcoming the Nortel employees into Ericsson.  We are truly impressed with their continuing outstanding performance during these challenging times,” said Magnus Mandersson, President of Ericsson CDMA operations.

“The agreement with Ericsson provides a strong and stable future for Nortel’s CDMA and LTE business. Customers will enjoy continued strong support from an industry leader as they look to evolve to LTE. Many employees will also have the opportunity to continue their work with Ericsson, bringing their innovation power and creativity to the wireless industry for years to come,” said Richard Lowe, President of Carrier Networks at Nortel.

Consummation of the transaction is subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

NORTEL NETWORKS CORPORATION 2011 First Quarter Report
(Under Creditor Protection Proceedings as of January 14, 2009 — note 2)

Nortel Networks Corporation

Prior to Nortel’s significant business divestitures, Nortel Networks Corporation (“Nortel” or “NNC”) was a global supplier of end-to-end networking products and solutions serving both service providers and enterprise customers. Nortel’s technologies spanned access and core networks and support multimedia and business-critical applications. Nortel’s networking solutions consisted of hardware, software and services. Nortel designed, developed, engineered, marketed, sold, licensed, installed, serviced and supported these networking solutions worldwide. As further discussed in note 2, Nortel is currently focused on the remaining work under the Creditor Protection Proceedings (as defined in note 2), including the sale of the remaining assets, providing transitional services to the purchasers of Nortel’s businesses and ongoing restructuring matters.

As of March 31, 2011, Nortel has completed the sales of all of its businesses and regarding these businesses only the residual contracts not transferred to the various buyers remain.

Significant Business Divestitures

On June 19, 2009, Nortel announced that it was advancing in discussions with external parties to sell its businesses. To date, Nortel has completed divestitures of all of its businessesincluding:

(i) the sale of substantially all of its Code Division Multiple Access (“CDMA”) business and Long Term Evolution (“LTE”) Access assets to Telefonaktiebolaget LM Ericsson(“Ericsson”);

(ii) the sale of substantially all of the assets of its Enterprise Solutions (“ES”) business globally, including the shares of Nortel Government Solutions Incorporated (“NGS”) and DiamondWare, Ltd., to AvayaInc. (“Avaya”);

(iii) the sale of the assets of its Wireless Networks (“WN”) business associated with the development of Next Generation Packet Core network components to Hitachi, Ltd.;

(iv) the sale of certain portions of its Layer 4-7 data portfolio to RadwareLtd.;

(v) the sale of substantially all of the assets of its Optical Networking and Carrier Ethernet businesses to CienaCorporation (“Ciena”);

(vi) the sale of substantially all of the assets of its Global System for Mobile communications (GSM)/ GSM for Railways (“GSM-R”) business to Ericsson and KapschCarrierCom AG (“Kapsch”);

(vii) the sale of substantially all of the assets of its Carrier VoIP and Application Solutions (“CVAS”) business to GENBANDInc. (now known as GENBAND U.S. LLC (“GENBAND”));

(viii) the sale of NNL’s 50% plus 1 share interest in LG-Nortel Co. Ltd. (“LGN”), its Korean joint venture with LG Electronics, Inc. (“LGE”), to Ericsson;

(ix) the sale of substantially all of the assets of its global Multi Service Switch (MSS) business to Ericsson; and

(x) the sale of substantially all of the Guangdong-Nortel Telecommunications Equipment Co. Ltd. (“GDNT”), assets to Ericsson Mobile Data Applications Technology Research and Development Guangzhou Company Limited and Ericsson(Guangdong Shunde) Communications Company Limited (collectively, “Ericsson China”).

On April 4, 2011, Nortel announced that it had entered into a stalking horse agreement with Ranger Inc., a wholly owned subsidiary of Google Inc. (“Google’) for the sale of its remaining patents and patent applications.

Business Divestiture Proceeds Received

As of March 31, 2011, of the approximately $3,183 in net proceeds generated through the completed sales of businesses proceeds of approximately $3,171 had been received. These divestiture proceeds include the following approximate amounts:

(a) $1,070 from the sale of substantially all of Nortel’s CDMA business and LTEAccess assets;

(b) $18 from the sale of Nortel’s Layer 4-7 data portfolio;

(c) $10 from the sale of Nortel’s Packet Core Assets;

(d) $932 from the sale of substantially all of the assets of Nortel’s ES business, including the shares of DiamondWare, Ltd. and NGS;

(e) $631 from the sale of substantially all of the assets of Nortel’s Optical Networking and Carrier Ethernet businesses;

(f) $67 from the sale of Nortel’s North American GSM business;

(g) $21 from the sale of Nortel’s GSM business outside of North America (excluding its GSM business in CALA) and its global GSM-R business;

(h) $137 from the sale of substantially all of Nortel’s CVAS business, net of an estimated reduction in purchase price (see below);

(i) $234 from the sale of Nortel’s 50% plus one share interest in LGN;

(j) $47 from the sale of substantially all of Nortel’s MSS business; and

(k) $4 from the sale of various Nortel business assets.

Nortel Commences Comprehensive Business and Financial Restructuring [Jan 14, 2009]

Nortel* Networks Corporation [NYSE/TSX: NT] announced that it, Nortel Networks Limited (“NNL”) and certain of its other Canadian subsidiaries will seek creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) in Canada. As well, certain of the Company’s U.S. subsidiaries, including Nortel Networks Inc. and Nortel Networks Capital Corporation, have filed voluntary petitions in the United States under Chapter 11 of the U.S. Bankruptcy Code, and certain of the Company’s EMEA** subsidiaries are expected to make consequential filings in Europe. The Company’s normal day-to-day operations are expected to continue without interruption. Nortel remains 100% focused on serving customers worldwide through continued R&D investments and support of its product portfolio to fulfill customer needs.

Nortel made this decision with the unanimous authorization of its Board of Directors after thorough consultation with its advisors and extensive consideration of all other alternatives. This process will allow Nortel to deal decisively with its cost and debt burden, to effectively restructure its operations and to narrow its strategic focusin an effective and timely manner.

The Company commenced a process to turn around and transform Nortel in late 2005, and the Company made important progress on a number of fronts.  However, the global financial crisis and recession have compounded Nortel’s financial challenges and directly impacted its ability to complete this transformationNortel is taking this action now, with a $2.4 billion*** cash position, to preserve its liquidity and fund operations during the restructuring process.

“Nortel must be put on a sound financial footing once and for all,” said Nortel President and CEO Mike Zafirovski.  “These actions are imperative so that Nortel can build on its core strengths and become the highly focused and financially sound leader in the communications industry that its people, technology and customer relationships show it ought to be.  I am confident that the actions we’re announcing today will be the fastest, most effective means to translate our improved operational efficiency, double-digit productivity, focused R&D and technology leadership into long-term success. I want to reaffirm Nortel’s dedication to delivering world-class solutions and services to customers.”

The application under the CCAA will be heard later today by the Ontario Superior Court of Justice. The voluntary petitions under Chapter 11 were filed with the United States Bankruptcy Court for the District of Delaware.  Nortel expects to be in a position shortly to provide an update regarding the consequential filings by certain of its EMEA subsidiaries.

The Company’s affiliates in Asia, including LG Nortel and in the Caribbean and Latin America, as well as the Nortel Government Solutions business, are not included in these proceedings and are expected to continue to operate in the ordinary course.

Nortel To Sell CDMA Business and LTE Assets; Company Advancing in Its Discussions With External Parties To Sell Other Businesses[June 19, 2009]

      • Enters into a Stalking Horse Sale Agreement for CDMA Business and LTE Access Assets with Nokia Siemens Networks for US$650 million
      • Sale of Businesses is Best Path for Nortel to Maximize Value While Preserving Innovation, Customer Relationships and Jobs to Greatest Extent Possible
      • Will Apply to Toronto Stock Exchange to Delist Shares and Expects Creditor Protection Proceedings Will Ultimately Result in Cancellation of Shares

… The agreement with NSN specifies that at least 2,500 employees would have the opportunity to continue with NSN.  This represents a significant portion of the employees associated with the assets being sold.

In addition to announcing this sale agreement, Nortel announced that it is advancing in its discussions with external parties to sell its other businesses. The company will assess other restructuring alternatives for these businesses in the event it is unable to maximize value through sales.

Commenting on the announcements, Nortel President and Chief Executive Officer, Mike Zafirovski said:

“Maximizing the value of our businesses in the face of a consolidating global market has been our most critical priority. We have determined the best way to do this is to find buyers for our businesses who can carry Nortel innovation forward, while preserving employment to the greatest extent possible.  This will ensure Nortel’s strong assets – technologies, customer relationships, and employees – continue to play an important role in driving the future of communications.  The value of Nortel’s wireless business is recognized throughout the industry.  The agreement we are announcing today is solid proof of that value and represents the best path forward for our other businesses.”

Zafirovski continued: “We also believe this will help provide clarity for our customers and employees. Customers have demonstrated consistent support for our products and services, and we want to ensure they continue to benefit from Nortel’s technology and know-how.  In addition, Nortel’s employees are doing a tremendous job under challenging conditions, stabilizing our business and delivering outstanding service to our customers.  It is important to provide our employees with a clear sense of direction around their future and potential opportunities with the new companies.”

The wireless business is the second largest supplier of CDMA infrastructure in the world.  It does business with three of the five top CDMA operators globally, including Verizon Wireless, which operates the largest wireless voice and data network in the United States.

Commenting on the wireless business announcement, Richard Lowe, President, Carrier Networks added:

“Seeking a strong and stable buyer is the best path forward for our CDMA business and LTE Access assets. If successfully completed, this transaction would give many of our CDMA customers a clear roadmap for the future evolution of their networks and the opportunity to extend their relationship with a long-term partner. Further, we expect that a significant portion of the employees associated with the assets being sold would be able to continue their innovative work.”

Lowe continued, “Nortel has a long track record of wireless innovation which has helped us secure a strong and loyal customer base. Throughout this sale process, our customers will continue to receive the highest quality support for their current networks. If successfully concluded, the buyer would gain access to leading edge technology, know-how, and embedded resources to support this significant customer base.”

Details of Sale Process for CDMA Business and LTE Access Intellectual Property Rights

Nortel will file the stalking horse asset sale agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code. A similar motion for the approval of the bidding procedures will be filed with the Ontario Superior Court of Justice.

In addition to the bidding process and U.S. and Canadian court approvals, consummation of the CDMA business and LTE Access transaction is subject to the satisfaction of customary and other conditions, including governmental approvals such as in Canada and the United States.  The stalking horse asset sale agreement is also subject to purchase price adjustments under certain circumstances.

Nortel Statement on Wireless Asset Auction [July 22, 2009]

As previously announced, on June 19, 2009, Nortel* [OTC: NRTLQ] entered into a stalking horse sale agreement with Nokia Siemens to sell substantially all of its CDMA business and LTE Access assets, subject to higher or better offers being received. On June 29, 2009, in the U.S., and June 30, 2009, in Canada, the courts established bidding procedures for the auction of these assets. The auction is scheduled to take place on July 24, 2009. Throughout this process, Nortel has made every effort to ensure all who want to participate can, with the goal of achieving the best outcome possible for employees and customers and maximizing value for its stakeholders.

Nortel had been in discussions with RIM regarding a related transaction but those discussions are currently on hold. Since the approval of the bidding procedures, Nortel has engaged with a number of potential bidders regarding the CDMA and LTE assets, including RIM.  Other parties moved expeditiously to comply with the court approved procedures to become qualified bidders, and RIM did not object to the approval of these procedures during the court process. It was not until  July 15 that  RIM submitted a letter to Nortel asking to be a qualified bidder and, since that time, Nortel has diligently attempted to work with RIM on acceptable confidentiality terms relating to Nortel’s valuable intellectual property assets. RIM has refused, however, to comply with the court approved procedures.

In order to participate in the court-approved bidding process, a qualified bidder is required to execute a standard confidentiality agreement. The agreement contains a common “standstill” provision that allows Nortel to ensure it is directly involved in any future negotiations on the sale of its assets. The standstill provision does not preclude future offers by a bidder to acquire assets consistent with any processes established by Nortel or the courts. Confidentiality agreements are a standard part of the auction bidding process and are designed to help run a fair process and protect a company’s confidential information, such as its intellectual property.  All qualified bidders are subject to confidentiality agreements.

Nortel, the Canadian Monitor, the U.S. Unsecured Creditors’ Committee and the Ad Hoc Bondholder Group have reviewed the circumstances related to RIM and have concluded that all bidders must comply with the bidding rules in order to maintain the integrity of the court-approved process. Consistent with that process, the auction will commence as planned on Friday, July 24, 2009.

Nortel Selects Ericsson as Successful Bidder For CDMA Business and LTE Access Assets [July 25, 2009]

  • Enters into Sale Agreement for CDMA Business and LTE Access Assets with Ericsson for US$1.13 Billion
  • A Minimum of 2,500 Nortel Employees will be Offered the Opportunity to Continue their Work at Ericsson
  • Canadian and U.S. Court Approvals of the Sale will be Sought at a Joint Hearing on July 28

TORONTO – Nortel* Networks Corporation [OTC: NRTLQ] announced today that it, its principal operating subsidiary Nortel Networks Limited, and certain of its other subsidiaries including Nortel Networks Inc.,  have concluded a successful auction of substantially all of Nortel’s CDMA Business and LTE Access assets. Telefonaktiebolaget LM Ericsson (“Ericsson”) has emerged as the winning bidderwith a purchase price of US$1.13 billion. The bid is subject to court approvals in the U.S. and Canada as well as regulatory and other customary closing conditions and certain post-closing purchase price adjustments.

If approved by the courts, Ericsson will purchase Nortel’s CDMA business which is the second largest supplier of CDMA infrastructure in the world, and substantially all of Nortel’s LTE Access assets giving it a strong technology position in next generation wireless networks. Also as part of this agreement, a minimum of 2,500 Nortel employees supporting the CDMA and LTE Access business will receive offers of employment from Ericsson.

Commenting on the announcement, Nortel President and Chief Executive Officer, Mike Zafirovski said:

“The anticipated sale of our CDMA business and LTE Access assets to Ericsson for $1.13 billion represents a very positive prospect for our customers who will be able to continue their relationships with a long term partner; for employees who will have new opportunities at Ericsson and for many of our other stakeholders. I want to especially thank our customers for their tremendous support during the process, which contributed to such a positive outcome.”

“Nortel remains focused on finding the right buyers for our other businesses while continuing to maintain excellent customer service levels. We are determined to maximize value while preserving innovation platforms, customer relationships and jobs to the greatest extent possible. With today’s agreement and through the anticipated sales of the Company’s other businesses, Nortel will leave its mark on the industry for decades to come.”

Commenting on the sale, Richard Lowe, President of Carrier Networks at Nortel, said:

“The outcome of today’s auction underscores the value the industry places on Nortel’s CDMA business and LTE Access assets, which include a strong customer base and world-class operations. Nortel’s extremely talented and committed employees have been an integral part of our success in wireless and we are very pleased that so many of them will have the opportunity to continue their innovative work with Ericsson.”

Carl-Henric Svanberg, President and CEO of Ericsson said:

“The agreement between Nortel and Ericsson brings together leading-edge wireless innovation from two of the world’s top telecommunications suppliers. We at Ericsson look forward to integrating Nortel’s products and talented employees into our business and realizing the full potential of our combined strengths.  Ericsson is committed to meeting the needs of our new CDMA customers today and bringing the next generation of mobile broadband to the world with LTE.”

While today’s auction is a significant step in the overall sale process, it is not the final step. Nortel will work diligently with Ericsson to close the sale later this year. Nortel will seek Canadian and U.S. court approvals of the proposed sale agreement at a joint hearing on July 28, 2009.

As previously announced in the Company’s June 19 and July 20, 2009 press releases, the Company does not expect that its common shareholders or the preferred shareholders of Nortel Networks Limited will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests

IV. Nokia Siemens Networks (NSN)

Nokia Siemens Productivity Trails Ericsson’s [July 15, 2011]

Nokia Siemens Networks, which this week ended talks to sell a stake to buyout firms, needs to cut jobs to gain the option of independence as competition with rivals including Huawei Technologies Co. intensifies.

The phone equipment venture between Nokia Oyj (NOK1V) and Siemens AG (SIE) generated sales of about $254,000 per employee last year, 19 percent less than larger rival Ericsson AB, based on numbers from the companies’ financial reports. The figure for both manufacturers is sinking as selling prices for equipment such as base stations and packet-switching networks decline.

Nokia Siemens said this week that it plans to improve its competitiveness “as a standalone entity” while announcing the end of talks over a stake sale. The Espoo, Finland-based venture, which has been unprofitable for all but one quarter since it started in April 2007, has increased its headcount to about 73,000 from about 60,000 after additions for outsourcing and the acquisition of a Motorola Solutions Inc. unit. In Germany alone, Nokia Siemens has almost 10,000 workers.

Nokia said July 12 that it’s open to other ownership options for the 50-50 venture, without elaborating. … Nokia, which has more shared interest with Nokia Siemens since both sell to phone companies, is paring down assets that aren’t essential to its main devices product lines. …

The joint venture has lost 3.35 billion euros from operations, restructuring, and impairment charges for Siemens since it was formed. Siemens Chief Financial Officer Joe Kaeser has repeatedly said that telecommunications is no longer a core business for the company.

Nokia Siemens and Ericsson have focused on wireless network equipment such as base stations and core networks and have expanded in software and services to a greater extent than competitors Alcatel-Lucent SA, Huawei and ZTE Corp. (000063) Nokia Siemens gets about half its revenue from services, including running entire networks remotely from India and Portugal. Ericsson counts about 40 percent of its revenue as services.

Nokia Siemens had 20.4 percent of the wireless equipment market in the first quarter, up from 18.2 percent a year earlier, according to Redwood Shores, California-based researcher Dell’Oro Group. Huawei was almost tied with Nokia Siemens at 20.3 percent and Ericsson had 34.5 percent. Alcatel- Lucent’s share was 13.7 percent.

Nokia Siemens announced in November 2009 that it would eliminate between 7 percent and 9 percent of the 64,000 positions it had at the time. The aim was to cut 500 million euros in annual costs by the end of this year. It has reported more than 1.05 billion euros in operating losses since the job cuts announcement.

“They need to remove the question mark around the ownership structure,” Sylvain Fabre, an analyst at Stamford, Connecticut-based Gartner Inc., said in a phone interview. “The first thing you learn in business school is you never do 50-50, you do at least 51-49. Until you really know who’s in charge you don’t really know what direction is ultimately imposed in the company.”

Nokia Siemens Networks completes acquisition of certain wireless network infrastructure assets of Motorola Solutions [April 29, 2011]

  • Pays US $975 million in cash
  • Approximately 6900 employees will transfer to Nokia Siemens Networks
  • Takes on responsibility for 50 operator customers in 52 countries

Nokia Siemens Networks and Motorola Solutions, Inc. (NYSE: MSI) today jointly announced that Nokia Siemens Networks has completed its acquisition of Motorola Solutions’ Networks assets paying US $975 million in cash. As of April 30 2011, responsibility for supporting customers of Motorola Solutions’ GSM, CDMA, WCDMA, WiMAX and LTE products and services transfers to Nokia Siemens Networks.

“The people, customers and technology we’ve acquired greatly complement our existing business by taking us into new markets and broadening our market share,” said Rajeev Suri, chief executive officer, Nokia Siemens Networks. “Our combined knowledge and experience will provide our newly expanded customer base with the means to grow by providing greater value to their subscribers.”

“Motorola Solutions is pleased to complete this transaction to combine our Networks team with an industry leader,” said Greg Brown, president and chief executive officer, Motorola Solutions. “This is great news for our customers, our investors and our people and will allow Motorola Solutions to further sharpen our strategic focus on providing mission-critical solutions for our government and enterprise customers.”

The acquisition strengthens Nokia Siemens Networks’ position in key regions, particularly North America and Japan, as well as with some of the world’s major service providers. Based on revenue, the addition of Motorola Solutions’ Networks assets makes Nokia Siemens Networks the third largest wireless infrastructure vendor in the United States and the leading non-Japanese wireless vendor in Japan. In addition, the acquisition reinforces Nokia Siemens Networks’ position as the world’s second largest wireless infrastructure and services provider.

As part of the deal, responsibility for supporting 50 operators across 52 countries, as well as approximately 6900 employees, will transfer to Nokia Siemens Networks. In addition, Nokia Siemens Networks is acquiring a number of research and development facilities including sites in the United States, China, Russia, India and the UK.

[Nokia Siemens Networks to Acquire Certain Wireless Network Infrastructure Assets of Motorola for US $1.2 Billion [July 19, 2010]

  • Transaction expected to significantly strengthen Nokia Siemens Networks’ presence globally, particularly in the United States and Japan.
  • Nokia Siemens Networks targeting to gain incumbent relationships with more than 50 operators and strengthen relationships with others.
  • Acquisition to enhance position of Nokia Siemens Networks in key wireless technologies; will give company large global footprint in CDMA.
  • Motorola retains the iDEN business, substantially all the patents related to its wireless network infrastructure business, and other selected assets.
  • The companies expect to complete closing activities by the end of 2010.

… As part of the transaction, Nokia Siemens Networks expects to gain incumbent relationships with more than 50 operators and to strengthen its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone. …

Motorola’s networks infrastructure business provides products and services for wireless networks, including GSM, CDMA, WCDMA, WiMAX and LTE. This business is a market leader in WiMAX, with 41 contracts in 21 countries; has a strong global footprint in CDMA with 30 active networks in 22 countries; and a robust GSM installed base, with more than 80 active networks in 66 countries; and excellent traction with LTE early adopters. …]

Nokia Siemens Networks to participate in large scale China TD-LTE trial [March 25, 2011]

Provides TD-LTE network, OSS, services for large-scale field trial in Hangzhou

With the approval of the Ministry of Industry and Information Technology of the People’s Republic of China (MIIT), Nokia Siemens Networks has become one of the first telecommunications equipment vendors to participate in the large-scale TD-LTE trial with China Mobile. Nokia Siemens Networks will offer its commercial 2.3GHz/2.6GHz TD-LTE equipment, professional services and management software to conduct the major field trial in Hangzhou.

Nokia Siemens Networks has already completed both 2.3 and 2.6GHz outdoor, and 2.3GHz indoor, single-system testing with TD-LTE. The company is one of the first global vendors to be selected for the large-scale TD-LTE field trials with China Mobile. In addition, Nokia Siemens Networks has conducted interoperability tests of its TD-LTE equipment with a number of TD-LTE devices of major suppliers. As stated by MIIT, Nokia Siemens Networks will cooperate with China Mobile to accelerate network construction, equipment installation, and network optimization according to the overall requirements and plan of the large-scale TD-LTE trial in Hangzou.

Nokia Siemens Networks has built a complete TD-LTE business in China, integrating procurement, production, testing and maintenance with its Hangzhou R&D Center at the center of this value chain,” said Markus Borchert, head of Greater China customer operations at Nokia Siemens Networks. “The approval by MIIT confirms our long-term support for TD-LTE and our leadership driving the global ecosystem for unpaired frequency bands.”

In addition to its market-leading Single RAN Advanced radio equipment, Nokia Siemens Networks will provide network planning and network optimization services to ensure sustained network quality and performance. Configuration, monitoring and optimization for this project will be based on the company’s Network Management System, NetAct.

Technology talk: Accelerating mobile broadband with TD-LTE [NSN’s Unite magazine, Feb 11, 2011]

Enabling communications service providers (CSP) to take advantage of unpaired spectrum to deliver high speed mobile broadband, Time Division Duplex (TDD) LTE, or TD-LTE, became a global technology in 2010. Important milestones included the first TD-LTE call in India Broadband Wireless spectrum at 2.3 GHz and the success of TD-LTE tests by China’s Ministry of Industry and Information Technology(MIIT).

TD-LTE is a natural evolution of TD-SCDMA, and WiMAX networks and takes care of interworking, coexistence and roaming between different technologies. TD-LTE also helps WiMAX CSPs to enjoy the economies of scale, roaming and network sharing benefits of the large 3GPP ecosystem, therefore making it important for WiMAX and TD-LTE to co-exist.

Leading manufacturers are developing TD-LTE terminals, while chipset and platform vendors are announcing availability of multi-mode LTE (FDD and TDD) offerings to ensure CSP service roll-outs with one common technology platform. Nokia Siemens Networks has made significant contributions to TD-LTE development. The company’s ‘TD-LTE Open Labs’ facility in Hangzhou, China is fostering and accelerating developments by enabling vendors to undertake end-to-end testing and validate their solutions before delivery.

Nokia Siemens Networks readies TD-LTE for India [Oct 19, 2010]

First TD-LTE call on country’s Broadband Wireless Access spectrum*

Nokia Siemens Networks is the first company to successfully demonstrate the Time Division Duplex version of LTE (TD-LTE)** using broadband wireless access (BWA) spectrum in India. The first video call was made by Gurdeep Singh, chief operating officer of Aircel. The call was conducted with the 4G mobile technology running on commercial hardware at the Nokia Siemens Networks’ Bengaluru R&D facility. It marks an important milestone moving 2.3 GHz TD-LTE closer to commercial availability.

During the test, Nokia Siemens Networks demonstrated high-definition video streaming and three-way video conferencing. Using interoperable TD-LTE dongles from Samsung, the demo showcased a peak throughput speed of 110 megabits per second (Mbps) and low latency in the range of 10-20 milliseconds.

The end-to-end demonstration was based on Nokia Siemens Networks’ LTE equipment and software. These include the company’s award-winning Flexi Multiradio Base Station and Evolved Packet Core – which comprises Flexi NS (Network Server) and Flexi NG (Network Gateway) – and standard-compliant software.

TD-LTE technology promises enhanced delivery of broadband to laptops on the move and smartphone services, thanks to increased data rates, reduced latency and its scalable all-IP flat network architecture. This technology ensures high-speed mobile broadband connectivity and a superior performance from mobile applications across a wide range of devices.

“Today’s demo reiterates our leadership and commitment to getting TD-LTE into new market. It also demonstrates our regional and global progress in this area,” said Juha Lappalainen, head of mobile broadband sales at Nokia Siemens Networks. “Our TD-LTE trials across the globe prove our capability in driving rapid commercial TD-LTE network deployments aimed at facilitating a new wave of advanced mobile broadband services.”

“This is an important milestone in building the TD-LTE ecosystem in India,” added Urs Pennanen, head of India region, Nokia Siemens Networks. “TD-LTE over the Broadband Wireless Access spectrum is important for the country, as it will allow operators to offer voice and data to the masses. We are ready to collaborate with partners to accelerate our progress toward a comprehensive deployment of TD-LTE in India.”

Nokia Siemens Networks is at the forefront of TD-LTE development and commercialization, actively working with telecom operators and device manufacturers. The company is fully prepared and committed to support the LTE activities and is in talks with many operators globally. It is actively participating in tests and trials for both Frequency Division Duplex LTE (FD-LTE) and TD-LTE technologies, while working with telecom operators and device manufacturers to strengthen the ecosystem. Earlier this year, Nokia Siemens Networks successfully demonstrated TD-LTE trials during Shanghai World Expo, and TD-LTE data calls at the company’s R&D center in Hangzhou (China) and at Taiwan’s National Chiao Tung University.

Independent labs confirm Nokia Siemens Networks TD-LTE leadership [Aug 13, 2010]

  • Meets full TD-LTE test specifications defined by China’s Ministry of Industry and Information Technology
  • Conducts world’s first high-definition TD-LTE video call including handover with a Samsung TD-LTE device

Nokia Siemens Networks has proven its leading role in advancing TD-LTE as it met the complete TD-LTE test specifications defined by China’s Ministry of Industry and Information Technology (MIIT).The successful completion of the trial in the 2.3GHz band at the MIIT lab in Beijing, China, marks an important milestone in the commercialization of TD-LTE. After the test, Nokia Siemens Networks also achieved the world’s first high-definition TD-LTE video call, including handover, with a Samsung TD-LTE device.

The high-definition video call demoshowcased interoperability between Nokia Siemens Networks’ LTE infrastructure and Samsung’s TD-LTE USB dongle, and marks a definitive step toward ensuring early availability of a functioning TD-LTE ecosystem for commercial deployments.

“We’ve achieved excellent results from this test and are happy to partner with Nokia Siemens Networks in driving the TD-LTE ecosystem further,” said Mr. Tong Wang, president of Beijing Samsung Telecom R&D Center. “Commercial readiness of devices is a key indicator for the success of a new technology and the current test results show that we are now well prepared for TD-LTE.”

“Meeting TD-LTE test specifications defined by MIIT and achieving the first high-definition video call with handover, are key milestones in our list of achievements, added Paul Pan, head of Network Systems, Greater China Region, Nokia Siemens Networks. “We will continue to collaborate with partners to accelerate our progress toward a comprehensive deployment of TD-LTE.”

Nokia Siemens Networks is at the forefront of TD-LTE development and commercialization, actively working with telecom operators and device manufacturers. The company recently announced the first TD-LTE interoperability data call with a prototype TD-LTE USB dongle from Samsung and the first TD-LTE video call between Shanghai and Taipei.

Nokia Siemens Networks sets up industry’s first TD-LTE Open Lab [April 16, 2010]

Provides smart phone and terminal testing facility to accelerate TD-LTE ecosystem

Nokia Siemens Networks has inaugurated a TD-LTE Open Lab at its Hangzhou R&D facility. The first such lab in the industry aims to provide practical know-how that will help telecom operators and TD-LTE device manufacturers across the globe deploy commercial TD-LTE quicker. Major TD-LTE smartphone and terminal manufacturers can use the lab to test the interoperability and functionality of their devices across TD-LTE networks.

“The development of terminals and devices has always been a bottleneck in the roll-out of new mobile technology,” said Mr. Sha Yuejia, vice president of China Mobile. “We are thus more than happy to see that Nokia Siemens Networks has established a cutting-edge terminal testing environment, an initiative that we support wholeheartedly. After all, a healthy ecosystem needs efforts from all stakeholders.”

Nokia Siemens Networks’ Open Lab will provide an end-to-end testing environment for verifying the compatibility of terminals and devices with the company’s TD-LTE network products and solutions. The lab will also provide consultancy and testing services to device manufacturers. Nokia Siemens Networks’ TD-LTE R&D center in Hangzhou is fully integrated into the company’s global network of LTE Centers of Competence. It is an ideal location for the new Open Lab, as the company can use the R&D center’s existing competencies, resources and assets to speed deployment of TD-LTE.

“This initiative will facilitate the holistic development of TD-LTE technology,” said Wang Tong, chief technology officer of Samsung China. “We are working hard to build-up the TD-LTE ecosystem. TD-LTE Open Lab will provide us with a common testing platform to prove the interoperability of our terminals with its networks before commercial rollout.”

“We are at the forefront of driving TD-LTE deployments, as we were the first to conduct a call fully compliant with the 3GPP Release 8 (March 09 baseline) standard using commercial network hardware,” said Zhang Zhiqiang, president of the Greater China Region at Nokia Siemens Networks. “The TD-LTE Open Lab is a key cooperation initiative that will help us align our solutions with major user equipment vendors and ensure that our networks fully interoperate with their devices for the benefit of all TD-LTE operators.”

While Nokia Siemens Networks will focus on a quick ramp-up of the Open Lab by leveraging existing R&D teams and assets, it is also putting in place an expert pool of interoperability testing (IOT) professionals to ensure optimum quality standards and define a long-term strategy for the lab.

Providing a live TD-LTE experience to operators in the region, Nokia Siemens Networks also recently kicked off a nationwide TD-LTE road show in China. Beginning in Beijing, the road show will cover more than ten provinces in three months, demonstrating the most advanced TD-LTE technology and applications.

Nokia Siemens Networks drives development of TD-LTE [March 4, 2009]

Following the industry’s first lab based TD-LTE demonstrations last year R&D in Hangzhou is being ramped up to support its commercial roll-out

Nokia Siemens Networks is gearing up for the launch of next generation Time Division Duplex Long Term Evolution (TD-LTE) technology in China. Following the industry’s first successful lab demonstrations conducted with leading operators in Germany last year, the company has further expanded its team in Hangzhou, China, to support the commercial roll out of TD-LTE.

Nokia Siemens Networks’ Hangzhou R&D center plays a pivotal role for the company. As well as driving innovation across GSM/EDGE, WCDMA/HSPA, LTE, I- HSPA and WiMAX technologies, Hangzhou’s 1,000 strong R&D team is being expanded to focus on supporting China’s home-grown TD-LTE technology through 2009. The company has been cooperating with leading operators in China and Europe to evaluate the performance of TD-LTE technology under various deployment situations and will continue this work with more advanced over the air tests and finally field trials in a pre-commercial multi-cell test network.

The TD-LTE first phase tests were completed in November last year and demonstrated the high throughput performance, in particular peak data rates and low latencies, of TD-LTE under various channel conditions as well as the robustness of the technology. The tests confirm that users will truly enjoy the superior mobile broadband experience promised by the LTE standard even in unpaired frequency spectrum.

“TD-LTE can catapult China to advanced next generation mobile broadband services and we are committed to putting significant resources to support its development and deployment,” said Marc Rouanne, head of the company’s Radio Access business. “In addition to the significant boost in ground resources, our fast rollout service capability and experiences in the region will help us in delivering cost efficient and high quality next generation mobile broadband networks to the benefit of operators and end users.”

Nokia Siemens Networks has played a pioneering role in China’s home grown technology standard TD-SCDMA and has developed a well proven network solution for this technology. In addition, it provides comprehensive delivery capability in related network planning, construction and optimization projects. The company’s expertise in TDD technology gained through deploying credible and competitive TD-SCDMA solutions in China, coupled with our global leadership in LTE puts us in an extremely advantageous position in the region.

A forerunner in LTE, Nokia Siemens Networks has made a long-term commitment through significant financial and R&D investment, across both Frequency Division Duplex (FDD) and Time Division Duplex (TDD) mode of operations. The company was the first to demonstrate LTE technology with data speeds in the 160Mb/s range as well as a successful handover between LTE and HSPA as early as 2006. The company continued breaking records in 2007 by demonstrating multi-user field trials in urban environments with peak data rates of 173 Mb/s. Launched in February 2008, Nokia Siemens Networks’ LTE capable Flexi base station is already shipping since Q3 2008, far ahead of competition. It is also one of the key contributors for standardization of both LTE modes in 3GPP.

V. Alcatel-Lucent (with special emphasis on lightRadio and related QorIQ Qonverge SoCs from Freescale quite essential for that)

China Mobile selects Alcatel-Lucent for TD-LTE trial network at World Expo 2010 [Nov 18, 2009]

Alcatel-Lucent (Euronext and NYSE: ALU) today announced that it has been selected by China Mobile to deploy a TD-LTE* trial network at the occasion of the World Expo 2010 in Shanghai (May 1 to Oct 31, 2010). The deployment will be the first in the world and follows Alcatel-Lucent’s first TD-LTE call on a third party terminal achieved earlier this year. The agreement was signed through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s Chinese flagship company.

Alcatel-Lucent‘s industry-leading TD-LTE platform will provide indoor coverage for 2 pavilions of World Expo 2010, namely the Theme pavilion and the Africa pavilion. Visitors will be able to enjoy advanced mobile services including ultra high speed internet access and HDTV at the exposition. Expected to have 200 participants and 70 million visitors, World Expo 2010 will open on May 1stnext year.

With the explosion of mobile data traffic that is underway today, service providers need to increase their wireless network capacity and to transform toward end-to-end IP networks in order to support a wide array of new revenue generating services while also driving down the operational cost of supporting the growing volume mobile broadband services. These needs are addressed by Alcatel-Lucent’s High Leverage Network™ architecture, which is intended to address the business, technical and operational challenges faced by service providers, enterprises and developers as they create, manage and market new applications. The High Leverage Network supports Alcatel-Lucent’s application enablement vision, which is focused on combining the trusted capabilities of service providers and enterprises with the speed and innovation of the Web to provide both consumers and business users with richer, more trusted and valuable experiences.

“China Mobile’s selection of our TD-LTE solution for this historical event further confirms that Alcatel-Lucent is playing a leading role in the evolution of 3G to 4G and that we are ready to help worldwide operators to take advantage of this technology,” said Olivia Qiu, President of Alcatel-Lucent Shanghai Bell and head of Alcatel-Lucent in East Asia.

LTE is the next evolution in mobile network standards defined by 3GPP (Third Generation Partnership Project) and supports operations in both the paired spectrum and unpaired spectrum. Alcatel-Lucent is a pioneer in the LTE market. It is able to provide common platform for both TDD and FDD spectrum, which creates a truly global ecosystem, and enables all operators to take advantage of a common system and unrivalled economies of scale as they look to provide 4G wireless broadband services to their subscribers.

In February 2009, Alcatel-Lucent announced that it has completed the first data calls – involving terminals from third-party suppliers – using TD-LTE technology, demonstrating Alcatel-Lucent’s commitment to supporting a smooth evolution path to 4G for all service providers.

* TD-LTE: Long Term Evolution (LTE) technology for Time Division Duplex (TDD) spectrum

For more information about Alcatel-Lucent’s LTE solution, please visit: http://www.alcatel-lucent.com/lte

Alcatel-Lucent achieves record speeds on World Expo China 2010 TD-LTE network [Feb 15, 2010]

Alcatel-Lucent (Euronext Paris and NYSE: ALU)today announced it has successfully achieved record speed rates on China Mobile’s TD-LTE (time division duplex – long term evolution) trial network – which is being installed to support the 2010 World Expo in Shanghai. During extensive tests, peak rates of more than 80Mbps downstream were realized by the team from Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China.The World Expo 2010, which will open on May 1stwith 70 million expected visitors, will provide a unique venue for all countries to demonstrate latest technological advances.

An industry’s first, these TD-LTE peak rates were achieved by using a single 20MHz spectrum band, carrying both the upstream and downstream traffic. And that’s an important differentiator versus previously announced breakthroughs in the LTE-FDD (frequency division duplex) space: the tests on China Mobile’s TD-LTE network show its readiness to cope with very high bandwidth demands as well, all while using half of the spectrum LTE-FDD networks require to accommodate peak throughputs of 100Mbps (downstream).

“These record speed rates on China Mobile’s TD-LTE trial network highlight Alcatel-Lucent’s commitment to providing our customers with an end-to-end LTE solution matching their specific spectrum and timing strategies,”said Romano Valussi, president of Alcatel-Lucent Shanghai Bell and head of Alcatel-Lucent’s China regional business unit. “Visitors to the event will thus be able to enjoy ultra high-speed mobile Internet access and experience the next generation of high-definition multimedia demonstrations. This will stimulate the worldwide adoption of TD-LTE technology, as well as its future commercialization.”

“Following the industry’s first TD-LTE calls performed in February 2009, this new milestone further reinforces Alcatel-Lucent’s ability to make TD-LTE a reality, and once again demonstrates the reliability of Alcatel-Lucent’s LTE solutions,” he added.

The tests were run using Alcatel-Lucent’s end-to-end LTE solution – including eNodeBs (base stations), evolved packet core (EPC) and a range of third-party commercial terminals. Alcatel-Lucent provided its professional services expertise, encompassing network installation and software integration.

This significant milestone comes at the same time as Alcatel-Lucent announcing good progress on the TD-LTE field trial in Shunyi (Beijing)- initiated by China’s Ministry of Industry and Information Technology (MIIT). Using third-party terminals and following a successful completion of all mobile file systems (MFS) tests, Alcatel-Lucent thus further proves the readiness of its end-to-end LTE solution.

LTE is the next evolution in mobile network standards defined by 3GPP (Third Generation Partnership Project) and supports operations in both the paired spectrum and unpaired spectrum. Alcatel-Lucent is a pioneer in the LTE market, having a common platform for both the time-division duplex (TDD) and frequency-division duplex (FDD) spectrums – that enables all operators to take advantage of unrivalled economies of scale as they look to provide 4G wireless services to their subscribers.

About Alcatel-Lucent and LTE
With 40 LTE customer trials secured to date, Alcatel-Lucent is a worldwide leader in LTE. The company is actively engaged in the majority of LTE projects being pursued by tier 1 operators around the globe. To help operators realize their potential, Alcatel-Lucent is offering a unique, pre-integrated, end-to-end LTE solution and a full set of associated professional services. Alcatel-Lucent’s network architecture is based on Alcatel-Lucent unique converged radio access network (RAN) strategy allowing scaling of W-CDMA networks and smooth evolution to LTE.The company also founded external linkthe ng Connect Program, a global initiative to drive the development of an open and diverse ecosystem of LTE device manufacturers, content providers and application partners. Through the ng Connect program and with Alcatel-Lucent’s end-to-end LTE solution, wireless broadband operators benefit from open innovation, pre-integrated solutions, reduce time to market with LTE-enabled services, and the ability to drive new and non-traditional business models.

For more information about Alcatel-Lucent’s end-to-end LTE solution, please visit:http://www.alcatel-lucent.com/lte

Alcatel-Lucent collaborates with Innofidei and ASTRI to complete the first high-definition video call over China Mobile’s TD-LTE network at World Expo [June 2, 2010]

Alcatel-Lucent (Euronext Paris and NYSE: ALU)and China Mobile today announced that they have successfully completed the first high-definition video call over a TD-LTE network at the Shanghai World Expo. Leveraging Alcatel-Lucent’s network infrastructure and systems integration expertise, as well as a TD-LTE USB dongle from Innofidei and ASTRI, World Expo visitors can experience a new class of ultra high-speed mobile services – including fast Internet access, significantly improved FTP upload/download speeds, 3D games and 3D maps.

As one of the key suppliers of China Mobile’s TD-LTE network at the Shanghai World Expo, Alcatel-Lucent is providing indoor broadband mobile coverage in the Theme and the Africa pavilions to the more than 70 million expected visitors. The achievement with Innofidei and ASTRI, both industry-leading TD-LTE terminal chip makers and recognized terminal vendors for China Mobile’s TD-LTE network, results from a series of successful interoperability tests aiming at an acceleration of TD-LTE’s commercialization.

“It is great to see the growth of TD-LTE in China. This achievement demonstrates that the TD-LTE industry chain is maturing, which will help boost the technology’s commercialization and global adoption,” said China Mobile’s TD-LTE EXPO project manager.

“This is a significant milestone for Alcatel-Lucent in the TD-LTE space. The successful interoperability tests, and resulting demonstrations with leading terminal vendors, further demonstrate our commitment to create an open TD-LTE ecosystem,” said Romano Valussi, president of Alcatel-Lucent Shanghai Bell and head of Alcatel-Lucent’s China regional business unit.

“As a major chip maker, Innofidei is actively participating in efforts to promote the TD-LTE industry. We launched our TD-LTE project in 2007, conducting further research with ASTRI. We were proud to see our efforts recognized by being awarded the bid for terminals for China Mobile’s TD-LTE network at the 2010 World Expo in Shanghai,” said Innofidei CEO Dr. Tom Zhang.

“Hong Kong ASTRI is determined to develop key technologies to benefit local and regional high tech industry. The cooperation with Alcatel-Lucent and Innofidei this time further illustrates our technology advance in TD-LTE” said Dr. Cheung Nim-Kwan, CEO of ASTRI.

In November 2009, Alcatel-Lucent was selected by China Mobile to deploy the first TD-LTE network in the world. This February, Alcatel-Lucent achieved record speedsof more than 80 Mbps downstream by using a single 20MHz spectrum band to accommodate both upstream and downstream traffic.

Alcatel-Lucent’s end-to-end LTE solution is a key element of its High Leverage NetworkTM architecture, providing sufficient capacity for the ever-growing data traffic at the lowest cost per bit, all with the intelligence necessary to create new business opportunities for our customers. The company’s end-to-end LTE network solution includes eNodeBs (base stations),its Ultimate Wireless Packet Core, IP/MPLS mobile transport, a comprehensive IMS solution and the ng Connect ecosystem with content and application vendors.

Having been selected to support more than 45 LTE trials around the globe and securing commercial contracts with two of the largest operators in the world, Alcatel-Lucent is a recognized market leader in LTE.

About Innofidei
Founded in Sept 2006 in Beijing Z-Park with operations in Beijing, Silicon Valley and Taipei , Innofidei dedicates itself to provide enabling IC and system solutions for mobile TV broadcast and telecommunication market.  external linkhttp://www.innofidei.com/

About ASTRI
The Hong Kong Applied Science and Technology Research Institute (ASTRI) was founded by the Government of Hong Kong Special Administrative Region in 2000 to enhance technological advances for Hong Kong through applied research.  During the past years, ASTRI has been conducting a spectrum of world-class and customer-focused R&D, and has built teams of excellent researchers, produced a volume of intellectual properties and created real economic impact by transferring technologies to its clients in Hong Kong, the Mainland and the region.    Please visit external linkwww.astri.orgfor more information.

About Alcatel-Lucent and LTE
Having been selected to support 45+ LTE trials around the globe and securing commercial contracts with two of the largest operators in the world, Alcatel-Lucent is a recognized market leader in LTE. To help operators realize their potential, Alcatel-Lucent is offering a unique, pre-integrated, end-to-end LTE network solution and a full set of associated professional services. Alcatel-Lucent’s end-to-end network architecture is pre-integrating Alcatel-Lucent converged radio access network (2G/3G/4G RAN) and an industry-leading IP networking solution encompassing Alcatel-Lucent’s Ultimate Wireless Packet Core, IP/MPLS mobile transport, wireless network guardian, and a comprehensive IMS solution. This network solution allows scaling of GSM/W-CDMA networks and a smooth evolution to LTE. The company also founded the external linkng Connect Program, a global initiative to drive the development of an open and diverse ecosystem of LTE device manufacturers, content providers and application partners. Through the ng Connect Program and with Alcatel-Lucent’s end-to-end LTE solution, wireless broadband operators benefit from open innovation, pre-integrated solutions, reduce time to market with LTE-enabled services, and the ability to drive new and non-traditional business models. For more information about Alcatel-Lucent’s end-to-end LTE solution, please visit: http://www.alcatel-lucent.com/lte

Alcatel-Lucent and China Mobile together with Audi to bring the magic of LTE to the streets of Barcelona [Feb 15, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile are collaborating to highlight a variety of high-value applications in an Audi A8 automobile supported by mobile network – based on Alcatel-Lucent’s commercially available infrastructure – that supports both flavours of Long Term Evolution (LTE) technology, Time Division Duplex (TDD) and Frequency Division Duplex (FDD), ensuring seamless global coverage.

In cooperation with Audi and application partners LiveCast and Vidyo, Alcatel-Lucent is bringing the magic of LTE to the streets of Barcelona with drive demos in a brand new LTE-driven Audi A8 cruising the neighbourhood around the Arts Hotel. From February 14th to 16th(9am-11:30am, 14pm-19pm), visitors will enjoy some exciting in-car services such as advanced street maps and navigation, video conferencing , video streaming, virtual desktop and music downloads.

“We are delivering a really cool driving experience in a really cool car using cutting-edge technology,” said Ken Wirth, President, 4G LTE Wireless Networks, Alcatel-Lucent. “What we are demonstrating is the ability of Alcatel-Lucent’s LTE Solutions to support the same kinds of advanced applications in both TDD and FDD spectrum, ensuring that all members of the LTE ecosystem can participate in the broader global value chain.”

The two modes of LTE share commonalities and are quite similar from an ecosystem perspective. The demonstrations also show the commercial readiness of Alcatel-Lucent’s integrated end-to-end LTE TDD and FDD solutions. This project also highlights the close collaboration between Alcatel-Lucent and China Mobile around the development of LTE; Alcatel-Lucent supported China Mobile’s TD-LTE trial network at World Expo in Shanghai last year and at public demonstrations of LTE at Mobile Asia Congress in November.

Alcatel-Lucent is supporting applications across both modes of LTE that are being deployed around the world in order to assist operators in leveraging LTE technology to develop a new range of connected devices and applications, including automobiles, to create new revenue opportunities and unleash new business models.  Through the ng Connect Program – which was launched by Alcatel-Lucent two years ago at Mobile World Congress – Alcatel-Lucent has pioneered the concept of the LTE in-vehicle connectivity and multi-industry ecosystem development. This year Alcatel-Lucent has worked directly with Audi to bring LTE enabled automobiles one step closer to commercial reality.

“Audi will make LTE technology a feature available in their commercial production line cars” explained Michael Dick, Board Member for technical development at AUDI AG, at the presentation of the experimental vehicle.

The drive demonstrations rely on Alcatel-Lucent’s end-to-end LTE converged solution comprising of common antennas, Alcatel-Lucent’s “zero footprint” base station (eNode B) and a Wireless Packet Core. In collaboration with Audi and application partners LiveCast and Vidyo we are showcasing how the network and applications like navigation, video streaming, virtual desktop, video conferencing, live broadcast and music downloads are integrated by our end-to-end LTE solution with both TDD and FDD coverage.

Vidyo is providing its revolutionary software-based telepresence technology for high-quality video conferencing demonstrations via TD-LTE, between passengers in the Audi A8 and people at the Mobile World Congress exhibit hall.

LiveCast’s industry proven live mobile video platform for enterprise is enabling HD quality video streaming with integrated telemetry and GPS location data, via TD-LTE from passengers in the Audi A8 to its LiveCast Command Center application at Mobile World Congress exhibit hall.

More applications will also be showcased in the Alcatel-Lucent’s booth at the Fira in Hall 6 and in the Apps Planet Hall 7 # 7A96 to highlight the commercial readiness of LTE and the transformation it will bring to many dimensions of our lives.

Having been selected so far by twelve customers for commercial deployments — including two of the world’s largest service providers — and being involved in over 60 trials worldwide –- including thirteen LTE TDD trials in seven countries — Alcatel-Lucent has established a strong leadership position in LTE.

More information about Alcatel-Lucent and LTE: http://www.alcatel-lucent.com/lte

Alcatel-Lucent and Sequans collaborate on LTE solutions [Feb 15, 2010]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Sequans today announcedtheir collaboration on LTE solutions for operators of TD-LTE networks in Asia and Europe who are planning to offer services at 2.6 GHz. The first result of this collaboration in response to this significant demand will be a Sequans 2.6 GHz USB dongle to be used in operator trials in 2010.

“Through this partnership, we are exhibiting our commitment to creating a vibrant LTE ecosystem and to supporting operator goals of demonstrating the value of TD-LTE in delivering advanced services to end users,” said Georges Karam, Sequans CEO.  “Alcatel-Lucent is an LTE technology leader, already actively involved in some of the most significant LTE deployment projects announced to date and we are pleased to work with them.”

Alcatel-Lucent was previously selected by China Mobile to deploy China Mobile’s demonstration network at the World Expo 2010 in Shanghai, beginning of May, using Sequans TD-LTE chips and USB dongles at 2.3 GHz.

“We are committed to working closely with operators in Asia and Europe to support their LTE strategies,” said Doug Wolff, vice president, Alcatel-Lucent’s 4G/LTE Solutions. “Our collaboration with Sequans, a truly innovative and accomplished 4G semiconductor supplier, will yield valuable TD-LTE solutions”.

About Alcatel-Lucent and LTE
With 40 LTE customer trials secured to date, Alcatel-Lucent is a worldwide leader in LTE. The company is actively engaged in the majority of LTE projects being pursued by tier 1 operators around the globe. To help operators realize their potential, Alcatel-Lucent is offering a unique, pre-integrated, end-to-end LTE solution and a full set of associated professional services. Alcatel-Lucent’s network architecture is based on Alcatel-Lucent unique converged radio access network (RAN) strategy allowing scaling of W-CDMA networks and smooth evolution to LTE.The company also founded external linkthe ng Connect Program, a global initiative to drive the development of an open and diverse ecosystem of LTE device manufacturers, content providers and application partners. Through the ng Connect program and with Alcatel-Lucent’s end-to-end LTE solution, wireless broadband operators benefit from open innovation, pre-integrated solutions, reduce time to market with LTE-enabled services, and the ability to drive new and non-traditional business models. For more information about Alcatel-Lucent’s end-to-end LTE solution, please visit:http://www.alcatel-lucent.com/lte

About SequansCommunications
Sequans Communications is a 4G chipmaker, supplying LTE and WiMAX chips to equipment manufacturers and mobile operators worldwide.  Founded in 2004 to address the WiMAX market where it is now a global leader, Sequans has recently expanded to address the LTE market.  Sequans chips are inside the world’s leading WiMAX networks and will soon be inside the world’s leading LTE networks.  Sequans is based in Paris, with additional offices throughout the world, including USA, United Kingdom, Israel, Japan, Hong Kong, Singapore, and Taiwan. external linkwww.sequans.com

Alcatel-Lucent Asia Pacific President talks about Q1 2011 [May 20, 2011]

Alcatel-Lucent Asia Pacific President Rajeev Singh-Molares shares his perspectives about Q1 2011 in the Asia Pacific region. Business in the region grew relative to the same quarter last year. China and Japan were strong. Operators are aggressively rolling out LTE networks spurred by upticks in smartphone and tablet use. The company will collaborate with China Mobile on next-generation network development, leveraging cloud RAN and lightRadio. A study by Bell Labs and World Economic Forum reveals it’s possible to accelerate GDP growth by an additional 40% when combining applications and services with mobile ubiquity.

Alcatel-Lucent Columbus – Where LTE Readiness Becomes LTE Reality [March 2, 2011]

In 2010, Alcatel-Lucent deployed more than 60,000 base stations to North American customers. This video explains how our LTE Readiness Methods and Procedures team and our Remote Integration Testing Center (RITC) work together to deploy LTE technologies for our customers. The video also explains the concept of the RITC, its advantages for the customer and its track record of success. In addition, the video discusses the deep LTE expertise found in the Methods and Procedures team along with the many things it does to support the RITC.

lightRadio: Alcatel-Lucent at “Best Practice Live” virtual conference [July 5, 2011]

lightRadioTM is a disruptive Wireless Architecture that enables operators the opportunity to develop next generation converged 2G/3G/LTE Radio Networks. Valérie Layan – VP Wireless Solutions EMEA at Alcatel-Lucent outlined how this unique solution offers a dramatic new way of building networks that will enable Macro and Small Cell integration, offer Opex savings of more than 50% compared to Classic BTS design and set the course for Wireless & Wireline convergence.

lightRadio Press Coverage

LIGHTRADIO CONNECTS THE WORLD [June 15, 2011]

The world’s first long-distance, high-quality mobile video-call using lightRadio™ – a breakthrough system pioneered by Alcatel-Lucent (Euronext Paris and NYSE: ALU) to transform the economics and efficiency of mobile telephony– has successfully taken place from the historic desk of Alexander Graham Bell.

Industry executives, technology leaders and analysts witnessed the inaugural lightRadio video call made from the headquarters of Bell Labs, the innovation engine of Alcatel-Lucent and now home to Graham Bell’s desk, from which he made the first-ever long-distance phone call.

Chris Lewis, Group Vice President of industry analysts IDC, hosted the call from Bell Labs in Murray Hill, New Jersey, connecting with Ben Verwaayen, Chief Executive of Alcatel-Lucent in Paris, and delegates at a business conference in Miami.

lightRadio is the name of a family of technologies which are set to transform mobile communications, improving the quality of network services for consumers while dramatically reducing the size, carbon footprint and energy consumption of mobile base stations.

After participating in the call, Ben Verwaayen, said: “We have taken lightRadio from the drawing-board to a fully working system, creating an entirely new system to connect customers around the world.”

The launch of lightRadio will help address exploding demand for mobile broadband services and increasing global consumption of wireless content. This has been fuelled by the adoption of smartphones and the popularity of video applications, social networking and mobile gaming services– all requiring wireless service providers to provide greater speed and capacity everywhere.

Network operators such as France Telecom/Orange, Telefonica and China Mobile are now engaged with Alcatel-Lucent in co-creating the market implementation of lightRadio. The system is expected to deliver significant operational savings for carriers and infrastructure owners by marking an end to the existing system of complex base stations and large cell towers.

This week’s inaugural call demonstrates lightRadio’s ability to handle high levels of data, meeting demand from customers increasingly using mobile video on Internet-networks. Among breakthroughs promised by the system, it will reduce mobile network energy consumption by 50% – compared with current equipment; enable roll-out of mobile broadband services to new marketsusing sustainable-power sources; and deliver major savings for operators.

Alcatel-Lucent predicts that lightRadio will help cut the cost of mobile infrastructure site, energy consumption, operations and maintenance. Bell Labs estimates that the total cost of ownership of mobile networks, the sum spent by mobile operators on access systems, reached 150 billion Euros in 2010.

More information about Alcatel-Lucent’s lightRadio portfolio can found online at http://www.alcatel-lucent.com/lightradio.

China Mobile and Alcatel-Lucent partner to develop next-generation RAN [Feb 15, 2011]

Alcatel-Lucent today announced it has signed a Memorandum of Understanding (MOU) with China Mobile, the world’s largest mobile operator and a leader in TD-SCDMA and TD-LTE, for the development of a next-generation radio access network (RAN). The MOU was signed by Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China.

Alcatel-Lucent and China Mobile will jointly launch technical and economic studies and investigate the technologies essential to build a centralized, collaborative, Cloud-based RAN (C-RAN) in order to set new standards for cost-effectiveness, network intelligence and energy-efficiency (“green”). The C-RAN will provide a common platform for multi-mode wireless standards such as GSM, 3G, and LTE, enabling to significantly improve network quality and coverage, reduce transmission resource consumption and lower OPEX by up to 50% and CAPEX by 15%.

Rajeev Singh-Molares, president of Alcatel-Lucent’s activities in Asia-Pacific said: “The partnership with China Mobile is directly addressing the challenges of high energy costs, explosion of mobile video and sustainable development. By helping them replace traditional network designs with flexible cloud-like architectures, we are preparing the future and help show the way in terms of technology and economic models.”

The strategic partnership for C-RAN will leverage Alcatel-Lucent’s recently-announced lightRadio, a breakthrough in mobile and broadband infrastructure to streamline and radically simplify mobile networks. Pioneered by Bell Labs, Alcatel-Lucent’s research and development arm, the new lightRadio system will dramatically reduce operating costs, technical complexity and power consumption.  This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically reducing and simplifying them.

lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and distributed through the antenna or the network for cloud-like processing.  Additionally the various cell site tower antennas are combined and shrunk into a single small powerful, Bell Labs-pioneered multi frequency, multi standard (2G, 3G, LTE) device that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

The partnership with China Mobile also reflects Alcatel-Lucent’s strong commitment to sustainable development and to Green as testified, in particular, by its leading role in theexternal linkGreenTouch™ Consortium, a global research initiative dedicated to dramatically improving the energy efficiency of information and communications technology (ICT) networks by a factor of 1,000. GreenTouch™ recently presented a Large-Scale Antenna System proof of concept offering the potential for tremendous energy savings thanks to its novel wireless transmission techniques.

Alcatel-Lucent maps the future of mobile technology [Feb 7, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced lightRadio™, a breakthrough in mobile and broadband infrastructure that streamlines and radically simplifies mobile networks. The solution was unveiled at a major press launch event in London supported by partners Freescale and HP.

Pioneered by Bell Labs, Alcatel-Lucent’s unique research and development arm, the new lightRadio system will dramatically reduce technical complexity and contain power consumption and other operating costs in the face of sharp traffic growth. This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically shrinking and simplifying them.

lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

Alcatel-Lucent’s new lightRadio product family, of which initial elements ready to begin customer trials in the second half 2011, provides the following benefits:

  • Improves the environment: lightRadio reduces energy consumption of mobile networks by up to 50% over current radio access network equipment. (As a point of reference, Bell Labs research estimates that basestations globally emit roughly 18,000,000 metric tons of CO2 per year). Also, lightRadio provides an alternative to today’s jungle of large overcrowded cell site towers by enabling small antennas anywhere.
  • Addresses digital divide: By reducing the cell site to just the antenna and leveraging future advances in microwave backhaul and compression techniques, this technology will eventually enable the easy creation of broadband coverage virtually anywhere there is power (electricity, sun, wind) by using microwave to connect back to the network.
  • Offers major savings for operators: Thanks to lightRadio’s impact on site, energy, operations and maintenance costs; when combined with small cells and LTE, this new solution can lead to a reduction of total cost of ownership (TCO) of mobile networks up to 50% (as a point of reference, Bell Labs estimates that TCO spent by mobile operators in mobile access in 2010 was 150 billion Euros).

Ben Verwaayen, CEO of Alcatel-Lucent, said: “lightRadio is a smart solution to a tough set of problems: high energy costs, the explosion of video on mobile, and connecting the unconnected.”

Alain Maloberti, Senior Vice President, Network Architecture and Design, France Telecom/Orangesaid: “Alcatel-Lucent’s new vision and strategy of mobile broadband is quite exciting: the new wireless network architecture and innovative radio proposal will potentially help us to achieve significant operating cost savings and be better prepared for future challenges. We look forward to work closely with Alcatel-Lucent to explore and test this new approach.”

Tom Sawanobori, VP Technology Planning, Verizon Wireless, said: “Verizon looks forward to learning more about the benefits of lightRadio technology and how they could be applied as we continue to expand and evolve our LTE network.”

Alcatel-Lucent is also in advanced planning with China Mobileas well as a number of other carriers around the globe around co-creation and field trials of the lightRadio solution.

Alcatel-Lucent studies have concluded that the total addressable opportunity for the multi-technology radio market1, which lightRadio addresses, will be over 12 billion Euros in 2014, representing more than 55% of the total wireless RAN market. The cumulative total addressable market will be over 100 billion Euros from 2011-2018.

Alcatel-Lucent’s lightRadio portfolio integrates a number of breakthrough innovations and technologies from Alcatel-Lucent’s Bell Labs research arm and ecosystem of companies:

Market Impact Technology Innovation
A new generation of active antennas allows vertical beam-forming that improves capacity in urban and suburban sites by about 30%, supports all technologies (2G, 3G, and LTE) and covers multiple frequency bands with a single unit. lightRadio cube – A unique Bell Labs antenna technology, the lightRadio Cube includes an innovative diplexer type, radio, amplifier, and passive cooling in a small cube that fits in the palm of the hand.
By moving former basestation components to a System on a Chip (SOC), lightRadio places processing where it fits best in the network – whether at the antenna or in the cloud. System-on-a-chip (SoC) jointly developed with Freescale Semiconductor, integrates intelligent software from Alcatel-Lucent onto fully remotely programmable state-of-the-art hardware.
The economics of radio networks are substantially improved by reducing the number and cost of fiber pairs required to support the traffic between the antenna and the centralized processing in the cloud. Unique compression algorithms provide nearly a factor of three compression of IQ sample signals.
Matching of load to demand through ‘elastic’ controller capacity, delivered on sets of distributed and shared hardware platforms, will improve cost, availability, and performance of wireless networks. Virtualized processing platforms. Alcatel-Lucent will use innovative virtualization software and will collaborate with partners like HP to enable a cloud-like wireless architecture for controllers and gateways.

The lightRadio Product Family

The new Alcatel-Lucent lightRadio product family is composed of the following components: Wideband Active Array Antenna, Multiband Remote Radio Head, Baseband Unit, Controller, and the 5620 SAM common management solution. The Wideband Active Array Antenna will be trialed later this year and have broad product availability in 2012. Additional product family members will be available over 2012, 2013 and 2014.

For detailed information on these elements please as well as a webcast replay of today’s press conference please visit http://www.alcatel-lucent.com/lightradio(replay available at 2:30 pm GMT). The lightRadio approach and technology path will be shown and explained further at Mobile World Congress in Barcelona on 14-17 February.

[1] The multi-technology radio market consists of radio access base stations that simultaneously support 2G, 3G, and LTE, and multiple frequencies, in the same platform

“Alcatel-Lucent’s lightRadio approach is a revolutionary step in evolving traditional telecommunication networks to more heterogeneous networks with higher capacity and lower cost,” said Lisa Su, Senior Vice President and General Manager of Freescale’s Networking and Multimedia Group. “Freescale is collaborating with Alcatel-Lucent to provide the chip-based architectures through our new system-on-chip technology that supports the highly-flexible, multi-standard, programmable capability required to make lightRadio a reality.”

“Communication service providers will be better able to meet the shifting and growing demands placed on their networks as a result of the new lightRadio product family from Alcatel-Lucent,” said Sandeep Johri, vice president, Strategy and Solutions, Enterprise Business, HP. “As part of the lightRadio evolution, HP intends to work with Alcatel-Lucent in a co-creation fashion around the use of cloud and virtualization technologies in the mobile access space.”

“The day has finally come when service providers need to take a serious look at the road ahead in terms of technology and their economic models,” said Phil Marshall of Tolaga Research. “To survive and thrive, service providers must evolve network designs, embrace small cell sites and all-IP architectures and replace traditional network designs with flexible cloud-like architectures that can truly meet the data demands of the future.”

The Disappearing Mobile Masts and Towers [Feb 7, 2011]

The looming global gridlock in mobile communications promises to be averted following the launch today of pioneering technology which will remove the bottlenecks constraining mobile networks and help deliver universal broadband coverage.

Alcatel-Lucent (Euronext Paris and NYSE: ALU), the leading network technology group, has joined forces with industry partners to develop lightRadio™, a new system that signals the end of the mobile industry’s reliance on masts and base stations around the world.

Ben Verwaayen, Chief Executive Officer of Alcatel-Lucent, said: “Today’s and tomorrow’s demands for coverage and capacity require a breakthrough in mobile communications.”

He added: “lightRadio will signal the end of the basestation and the cell tower as we know it today.”

Governments and regulatory bodies are expected to welcome the technical development, which will help meet targets for universal broadband access by laying the foundation to address the so-called “digital divide.”

Other major benefits from lightRadio™ include:

  • Shrinking the carbon footprint of mobile networks by over 50%
  • Reducing the Total-Cost-of-Ownership of mobile operators by up to 50%
  • Improving end user services by significantly increasing bandwidth per user thanks to the deployment of small antennas everywhere

Wim Sweldens, President of Alcatel-Lucent’s Wireless Division said: “lightRadio will help mobile operators evolve their networks to address the mobile broadband deluge.”

lightRadio represents a new approach where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network.

lightRadio also shrinks today’s clutter of antennas serving 2G, 3G, and LTE systems into a single powerful, Bell Labs-pioneered antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

The innovation coincides with growing demand for third-and-fourth generation mobile networks and devices, involving the mass adoption of wireless television services and other forms of broadband content. The total addressable market for the radio technology necessary to serve such networks and devices is expected to exceed €100bn1over the next seven years.

Alcatel-Lucent announced the lightRadio™ technical specifications and launch timetable at an industry event in London today. Visit http://www.alcatel-lucent.com/lightradiofor product press release and link to event replay (available at 2:30 GMT).

[1] This is the total addressable market for multi-technology radio solutions that consist of radio access base stations that simultaneously support 2G, 3G, and LTE, and multiple frequencies in the same platform

Freescale introduces industry’s first multimode wireless base station processor family that scales from small to large cells [Feb 14, 2011]

Freescale Semiconductor – the communications processing leader and provider of industry-leading DSP technology – is transforming the future of wireless infrastructure equipment with the introduction of a highly integrated base station-on-chip portfolio built on advanced heterogeneous multicore technology. Freescale’s new QorIQ Qonverge seriesis the first scalable family of products sharing the same architecture to address multi-standard requirements spanning from small to large cells.

The explosion of smart connected devices with increasing data and video content has created a mobile data tsunami, requiring OEMs and carriers to dramatically boost network performance while controlling capital expenditure costs, increasing power efficiency and supporting the emergence of 4G technologies.

The QorIQ Qonverge portfolio of base station-on-chip products is based on a common architecture and integrates communications processing, digital signal processing and wireless acceleration technologies into a single system-on-chip in various configurations optimized for next-generation femtocell, picocell, metrocell and macrocell base stations. Advanced process technology and exceptional integration allow the convergence of multiple functions traditionally performed on separate FPGAs, ASICs, DSPs and processors to be incorporated on a single device. This integration lowers part counts and delivers significant power, cost and footprint reductions for base stations. The common architecture spanning from femto cells to macro cells optimizes R&D investments and software reuse.

“The current explosion in mobile data traffic worldwide provides unique challenges and opportunities for wireless infrastructure equipment providers as they race to increase capacity and capability,” said Lisa Su, senior vice president and general manager of Freescale’s Networking and Multimedia Group. “Freescale’s highly integrated QorIQ Qonverge portfolio enables base station manufacturers to provide a dramatic, step-function improvement in performance, power and cost in a single, flexible architecture.”

QorIQ Qonverge technology can deliver 4x cost reduction and 3x power reduction for LTE + WCDMA macro base stations, and 4x cost and power reductions for LTE + WCDMA pico base stationswhen compared to wireless infrastructure equipment powered by discrete silicon products.

“By integrating multiple industry-leading technologies into one scalable product line, Freescale’s QorIQ Qonverge portfolio delivers significant innovation that advances the state of wireless networking at this pivotal time for the industry,” said Will Strauss, president and principal analyst of Forward Concepts. “The QorIQ Qonverge portfolio presents a unique solution and strengthens Freescale’s position as a processing technology leader in the wireless infrastructure space.”

Freescale leveraged its broad R&D scale, deep application knowledge of the wireless space and extensive IP portfolio to develop the new product family. QorIQ Qonverge processors combine multiple Power Architecture® cores and high-performance StarCore DSPs with a MAPLE multimode baseband accelerator, packet processing acceleration engines, interconnect fabric and next-node process technology. The portfolio’s products support multiple standards, including GSM, LTE – FDD & TDD, LTE-Advanced, HSPA+, TD-SCDMA and WiMAX. In addition, the family’s flexible architecture allows support for evolving standards with software upgrades.

“Freescale’s innovative QorIQ Qonverge platform provides the integration, performance, energy efficiency and unmatched scalability that our new lightRadio™ product portfolio requires,” said Wim Sweldens, president of Alcatel-Lucent’s Wireless Division. “Game-changing products like lightRadio disaggregate the base station between the network and the wideband active antenna, produce dramatic cost savings and need components that provide giant leaps forward such as Freescale’s new QorIQ Qonverge technology.”

“Freescale’s QorIQ Qonverge product line gives us the flexibility to cost-effectively address the widest possible small cell market by providing a common architecture and multimode capabilities, along with the programmability for us to incorporate our own advancements,” said Michael Clark, Airvana’s general manager for femtocell business. “We look forward to working with Freescale to help accelerate the deployment of small cells in next-generation wireless networks.”

According to analyst firm Infonetics, radio access network base station spending is projected to be $197 billion worldwide over the next four years.

Complete solutions
Customers can develop best-of-breed solutions with ease by combining their own differentiated IP with off-the-shelf components from Freescale and ecosystem partners. Freescale has assembled a rich ecosystem of technology leaders focused on wireless applications. Products and services from these partners can be combined with third party tools, as well as Freescale’s CodeWarrior technologies and VortiQa application software. This ecosystem can provide ODMs and OEMs Layer 1 – 4 software, transport and security stacks, RF technologies, test and measurement capabilities and ODM solutions.

A development platform based on the P2020-MSC8156 AMC bundled with partner software and RF solutions is available immediately for rapid software development. In addition, Freescale offers a wide portfolio of GaAs MMICs and LDMOS RF solutions for consumer and enterprise pico and femto cells.

QorIQ Qonverge products
The QorIQ Qonverge portfolio includes four distinct products optimized for small cell (femto and pico) and large cell (metro and macro) applications. It also supports remote radio head and emerging cloud-based radio access network (C-RAN) configurations.

The first products in Freescale’s QorIQ Qonverge multicore portfolio are built in 45-nm process technology and planned for availability in the second half of 2011. The products are the PSC9130/PSC9131 femto SoCs and PSC9132 picocell/enterprise femto SoC devices. Freescale plans to introduce portfolio members targeting larger cell (metro and macro) base stations built in 28-nm process technology later this year.

PSC9130/31 Femto SoC

      8-16 users (WCDMA, LTE, CDMA2K) and simultaneous multimode
      2×2 MiMO
      1x e500 and 1x SC3850
      MAPLE-B2F acceleration

PSC9132 Pico/Enterprise Femto SoC

      32-64 users (WCDMA, LTE) and simultaneous multimode
      2×4 MiMO
      2x e500 and 2x SC3850
      MAPLE-B2P acceleration

About Freescale Semiconductor
Freescale Semiconductor is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial and networking markets. The privately held company is based in Austin, Texas, and has design, research and development, manufacturing and sales operations around the world. www.freescale.com.

Supporting Partner Quotes Follow

Enea
“Enea currently provides a breadth of leading software solutions to support Freescale’s extensive portfolio of networking IP,” said Marcus Hjortsberg, vice president of Marketing for Enea. “We look forward to playing a role in unleashing the innovative capabilities of Freescale’s new QorIQ Qonverge hybrid multicore portfolio.”

Green Hills
“With a long history of optimized support for Freescale’s multicore and multiprocessor platforms, we are excited to see Freescale’s next-generation wireless base station solution,” said Dan Mender, vice president of Business Development, Green Hills Software. “QorIQ customers use our multicore development tools and scalable real-time operating systems, MULTI and INTEGRITY, to conquer today’s multicore challenges and we look forward to supporting them as they adopt the QorIQ Qonverge portfolio.”

Mentor Graphics
“The integration of StarCore DSP technology with Power Architecture cores in the new Freescale QorIQ Qonverge portfolio is a major advancement for the wireless industry. We see great potential for this class of heterogeneous multi-core designs,” said Glenn Perry, general manager of the Mentor Graphics Embedded Software Division. “The Mentor Embedded Linux platform for Freescale devices combined with CodeSourcery software development tools will enable our mutual customers to develop advanced, innovative and scalable systems with increased performance and power efficiency.”

Aricent
“We are thrilled to be partnering with Freescale to accelerate development of new best-in-class solutions in the wireless infrastructure market,” said C.P. Murali, executive vice president and general manager at Aricent. “Our comprehensive suite of software frameworks and product engineering services enable customers to rapidly introduce innovative solutions based on Qonverge technology.”

Continuous Computing
“We are proud to be a member of Freescale’s technology partner program and for Freescale to be a member of the Continuous Computing Network,” said Todd Mersch, director of Product Line Management at Continuous Computing. “Together we offer customers a complete range of femto to macro base station solutions consisting of Trillium wireless software and the latest advances in the QorIQ Qonverge portfolio of processors.”

Critical Blue
”Freescale’s QorIQ Qonverge platform is architecturally very innovative. Meeting next-generation network speed requirements will require software developers to make knowledgeable choices in application partitioning and task allocation to the different types of cores on these platforms,” said David Stewart, chief executive officer of CriticalBlue. “The development program we have ongoing with Freescale will ensure that our Prism tool has all the capabilities needed to support a smart methodology for software developers, enabling them to get the maximum benefit from targeting the QorIQ Qonverge platform.”

L&T Infotech
“L&T Infotech is excited to collaborate and build world-class wireless solutions based on Freescale’s QorIQ Qonverge portfolio,” said Sudip Banerjee, chief executive officer for L&T Infotech. “Our end-to-end telecom proficiency spans the entire wireless domain, with proven expertise on LTE/WiMAX, multicore technologies, network security and optical transport networks, ultimately enabling accelerated time-to-market for our client’s products.”

Signalion
“We are pleased to support Freescale’s QorIQ Qonverge portfolio with our world-class wireless test technologies to ensure high-performance equipment, service and end-user experiences,” said Tim Hentschel, managing director for Signalion GmbH. “Freescale is charting new territory with the QorIQ Qonverge hybrid portfolio that promises to transform the future of wireless infrastructure equipment.”

Tata-Elxsi
“The introduction of theQorIQ Qonverge portfolio means OEMs now have a single-architecture, compatible family of products to address all their base station design needs,” said Shyam Ananthnarayan, head of the Communications Business Unit at Tata Elxsi. “As a key member of Freescale’s rich ecosystem, Tata Elxsi will offer market-leading LTE eNodeB software stacks optimized to ease customers’ development of best-of-breed solutions based on Qonverge technology.”

Wireless support and network functions converge in QorIQ Qonverge processors [By Tom Thompson, June 16, 2011]

Wireless communication seems ubiquitous these days–until you wander into a dead zone and lose the network connection to your laptop, tablet, or mobile phone. Telco carriers are working hard to eliminate such areas by installing more macrocell towers. Sometimes installing one of those big bruisers in an area isn’t possible, so the carriers fill in the coverage gaps by scaling down. Scaling down in this case means building smaller wireless installations, such as microcell (also known as metrocell), picocell, and femtocell base stations.

You don’t have to be a rocket scientist to realize that deploying such a diverse array of gear can be a nightmare, both in terms of hardware design, embedded software development, and support. Every base station has various wireless formats to manage, and the smaller base stations must also implement certain wired backhaul technologies such as Ethernet and ET/T1 so that they can connect to the carrier’s infrastructure. One way to alleviate this headache of multiple base station designs is to reduce the different types of hardware used. For this scheme to work, however, the signal processing capabilities of a DSP and the networking functions of an application processor must converge into one unified part.

Freescale happens to be well-positioned to provide such a converged solution. First, the company makes its StarCore DSPs, which are 32-bit multicore processors engineered for high data processing throughput and support for a variety of wireless protocols. Second, the company makes high-performance network processors, notably those that comprise its QorIQ Processing Platform. These are 32-bit processors based on a low-power, high-performance Power Architecture core that manages several high-speed communications interfaces. Variants of both the StarCore and Power Architecture families feature fewer cores or lack hardware accelerators, which enable them to hit a specific price point or power consumption target.

Freescale’s convergence strategy is simple in concept, yet presented an engineering challenge. First, you take the core subsystems of these two processors and place them on a single chip. Next, surround the cores with a bevy of enhanced communications interfaces. Finally, knit all of these elements together with a high-speed switching fabric. The result is the QorIQ Qonverge processor, a system that is essentially a base station on a chip. Let’s delve deeper into the microarchitecture of the QorIQ Qonverge and see how it offers a comprehensive solution.

A Tale of Two Processors

The block diagram in Figure 1 depicts the major logic blocks that make up the QorIQ Qonverge PSC3191E, a part suitable for femtocell and picocell base station designs.

Figure 1

Figure: Block diagram of the QorIQ Qonverge PSC9131E processor.

The StarCore subsystem consists of an SC3850 DSP core that has six execution units(four data ALUs, and two address units) that operate in parallel to retire six instructions simultaneously per clock. The ALUs support integer and fractional arithmetic, including multiply-accumulate (MAC) and other sophisticated instructions. The core is therefore capable of reading, processing, and writing a continuous stream of data. The subsystem has its own internal L1/L2 caches, an MMU, an interrupt controller, and timers.

The Power Architecture subsystem consists of an e500 core, which is a superscalar processor with multiple execution units that can issue and retire two instructions per clock cycle. It has its own internal L1/L2 caches, an interrupt controller, and timers.

Each core has separate 32 KB instruction and data caches to reduce latency and boost throughput. The Harvard architecture implementation of these caches requires more transistors, but it helps to ensure that the cores receive a continuous stream of data and instructions. The unified L2 caches can be configured so that a portion of them acts as a low-latency L2 memory for time-critical data or variable storage.

Both subsystems would grind to a halt if they could not access memory or peripheral devices rapidly. To minimize this bottleneck, a high-performance communications interface, known as the Chip-Level Arbitration and Switching System (CLASS) fabric was used. This high-bandwidth, low-latency switching fabric is a fully-pipelined, device interconnect that provides direct access to the resources of the subsystems and on-chip peripherals.

The DMA engine, which can be programmed by either core, uses the CLASS fabric to manage data transfers. It has four bidirectional channels. Off-chip memory is accessed through a DDR memory controller. The controller supports DDR3/DDR3L devices, and can manage a 32-bit interface at a maximum 800 MHz data rate.

Hardware Gives a Hand

As you can see, the QorIQ Qonverge processor is one busy piece of silicon. Among its many duties is to process various wireless formats and encrypt communications sessions. These wireless and encryption algorithms are complex and require substantial processing power. While they can be done in software, the QorIQ Qonverge processor has dedicated execution units that can off-load the computational demands of these algorithms from the core subsystems.

The Multi Accelerator Platform Engine for Femto BaseStation Baseband Processing (MAPLE-B2F) unit provides hardware acceleration for baseband algorithms such as channel decoding/encoding, UTMS chip rate processing, and LTE uplink/downlink processing. It also accelerates the computation of Fourier transforms, matrix inversions, CRC algorithms, convolution and filtering operations, Turbo encoding/decoding, and Viterbi decoding. It is a second-generation design that builds upon an established predecessor used in certain StarCore DSPs.

For encryption duties there is the security engine, a cryptographic and assurance acceleration unit. It uses a job queue interface that can schedule multiple cryptographic tasks in parallel, and its multiple accelerators can be shared among different applications. In concert with the DMA engine, this module can use scatter/gather operations to collect data that is distributed throughout memory. The module has hardware accelerators for public key, message digest, ARC four, SNOW 3G f8 and f9, and Katsumi cryptographic operations. It also has accelerators that manage DES, AES, and CRC operations, and it supports a variety of cryptographic authentication schemes.

Note that acceleration capabilities are not limited exclusively to these particular modules. Other modules can accelerate a subset of their functions. For example, the Ethernet controller can off-load and accelerate certain TCP/IP stack operations such as IP header recognition and checksum, plus TCP/UDP checksum and verification.

Smart Controllers

The PSC9131E has several controllers that manage complex I/O operations concurrently. The Antenna Interface Controller (AIC), as its name implies, handles transactions between the processor and an external Radio Frequency (RF) subsystem. It supports CDMA, WCDMA-DD, LTE-FDD, LTE-TDD, and GSM (receive only) network modes. Data received from the transceiver is reformatted and stored by the AIC into system memory or in the MAPLE-B2F unit. Data to be transmitted is transferred by DMA to the AIC where it frames the data for the proper network format and sends it to the transceiver. The AIC can handle up to a maximum of four data lanes, depending upon the wireless format in use.

The Ethernet controller features two enhanced Gigabit Ethernet interfaces that can operate at speeds of 10 Mbps, 100 Mbps and 1 Gbps. These interfaces are IEEE 802.3, 802.3u, 820.3x, 802.3z, 802.3ac, and 802.3ab compliant. As mentioned previously, the controller can accelerate the identification and retrieval of standard and non-standard protocols present on the Ethernet connection.

The USB controller is USB revision 2.0 compliant and can function as both a host and a device controller. As a host, it supports low-, full-, and high-speed transfer rates. It contains its own DMA engine that reduces the interrupt load on the processor and minimizes the bus bandwidth necessary to service any USB transactions.

In summary, these several controllers provide sophisticated wireless, Ethernet, and USB services, yet without adding a considerable burden to the processor’s operation, especially when it is conducting network/wireless routing.

Ports Aplenty

The PSC9131E provides a number of ports that enable you to connect a large cast of supporting peripherals to the processor. These are:

  • Enhanced SPI
  • Two DUARTs
  • Integrated Flash memory Controller (IFC)
  • Two I2C controllers
  • General-Purpose I/O (GPIO) interface with 32 bidirectional ports
  • Universal Subscriber Identity Module (USIM) interface for communicating with a SIM card
  • PWM optimized to generate sound
  • Enhanced Secured Digital Host Controller (eSDHC) for interfacing to SD/SDIO/MMC cards

As a unit, QorIQ Qonverge processors represent a fusion of many existing, field-proven Freescale technologies. However, the resulting processor is far greater than the sum of its parts. Since the QorIQ Qonverge processor implements the level-1, -2, and -3 processing layers required for network/wireless communications on-chip, it only lacks some external hardware, such as a power supply, flash memory, DRAM, Ethernet line-driver and a RF transceiver to implement a stand-alone femtocell or picocell base station. It is designed to replace both the DSP and the applications processors at the heart of many such base station designs, as shown in Figure 2. By doing so, the QorIQ Qonverge part can reduce complexity, processing latencies, and the bill of materials for a base station design.

Figure 2. The QorIQ Qonverge-based picocell design (bottom) uses fewer parts than a design based on separate DSP and application processors (top).

A Processor for Many Uses

The QorIQ Qonverge processor isn’t limited to short-range base stations, however. It can also scale up: Multicore variants can support microcell and macrocell base station designs. This allows you to assemble a range of base station designs around one part.

Besides simplifying the base station design, the QorIQ Qonverge processor also allows you to reuse existing software. For example, existing StarCore MSC8156 DSP code and P2020 application code can be migrated to the QorIQ Qonverge processor, since the cores are nearly identical. The same CodeWarrior tool suite for StarCore DSPs and CodeWarrior tools for Power Architecture can be used to write and debug the software. Furthermore, the code written for–say, a picocell base station–can be reused in microcell and macrocell base station designs. Revising the code for a multicore processor can be tricky, but you can start the process with the knowledge that the application code was stress-tested on smaller base stations. Also, Freescale’s partner, CriticalBlue, has a multicore simulation tool to assist you in this process for Power Architecture-based software. All of this adds up to be a comprehensive solution for embedded base station designs.

Turn the lightRadio on [March 8, 2011]

Development hopes to double network capacity while halving power consumption. By Roy Rubenstein.

Mobile operators face significant challenges, given the rapid growth in mobile broadband traffic. They are starting to roll out the latest mobile technology, Long Term Evolution (LTE), as yet another overlay alongside the existing wideband CDMA and GSM networks. Mobile sites are thus being crammed with antennas and basestation equipment.

The cellular network is 30 years old,” said Tom Gruba, marketing director for wireless activities at Alcatel-Lucent. “You cannot just keep adding more basestations in the network to solve the [data] capacity problem; the business model doesn’t work.” Alcatel-Lucent’s solution is lightRadio, which moves the processing power to the antenna or into the network, like cloud computing. The system vendor points out that architecture change is being industry led; what Alcatel-Lucent is claiming is that the lightRadio portfolio of products is the first to support the new architecture.

Announced in the run up to Mobile World Congress 2011, lightRadio promises to double network capacity, while halving power consumption. The lightRadio products include a wideband active array antenna that integrates the amplifier and antenna elements, a radio SoC developed with Freescale, and a multimode radio controller platform being developed with HP. Integrating the amplifier alongside the antenna achieves better coupling of the signal to the antenna. Less power is wasted, such that a smaller amplifier can be used.

Alcatel-Lucent - lightRadio The wideband active array antenna is implemented as a 6cm cube, pictured left. The wideband operation covers 400 to 4000MHz, allowing one cube to support 700MHz and 2600MHz bands. “These can be stacked, depending on how much power is needed, and you can have two or three columns to serve two or three frequencies and any technologies you want,” said Gruba.

Being an active design, the antenna boosts cell capacity through beam forming and multiple input, multiple output (MIMO) technology. Combining the amplifier-antenna with the radio chip forms a compact basestation that can be mounted on masts or within buildings. Such a combined baseband/remote radio head takes little space and avoids the need for air conditioned cooling associated with traditional basestations.

LightRadio will also enable a cloud computing style radio network architecture, where the basestation is separated from the antenna-amplifier. Traditionally, the radio amplifier was connected to the baseband via a backplane. The advent of the remote radio head led to the creation of the common public radio interface (CPRI) to connect the amplifier at the antenna with the baseband unit. With a cloud based radio network, basestations from 25 or 30 cell sites could be placed in a facility up to 40km away, with the CPRI signal carried over an optical link.

Alcatel-Lucent estimates the maximum lightRadio bit stream needed to be carried over the CPRI link is 10Gbit/s. Compression technology will reduce this by a factor of three, so operators can avoid installing a dedicated 10Gbit optical link. At the core of the baseband processing is the SoC developed with Freescale.

“Dimensioning the various aspects of the SoC is critical,” said Preet Virk, Freescale’s director, networking segment. The SoC design uses Freescale’s recently announced QorIQ Qonverge technology that supports designs spanning femtocells to macro basestations. Two devices have been announced – for femtocells and picocells – that are implemented using a 45nm cmos process. Alcatel-Lucent’s radio ic will be implemented in 28nm cmos and will be available from 2012.

Freescale is not willing to detail the basestation SoC yet, but the scalable design uses cores and IP blocks that are shipping in Freescale products, such as the e500 Power Architecture core and the StarCore SC3850 dsp as well as baseband acceleration blocks.

“Scalability comes in many forms,” said Barry Stern, Freescale’s baseband DSP & SoC products, marketing manager, wireless access division, networking and multimedia group. “From a few users to hundreds of users; from 1.25 to 20MHz bandwidths and beyond; simultaneous multimode support; and enabling OEMs to use the same software across different basestation designs, saving on development costs.”

Freescale’s femtocell SoC supports 8 to 16 users and uses an e500 core and a dsp core. The picocell SoC supports 32 to 64 users and uses two e500s and two dsp cores. Freescale’s metro and macro cell SoCs will support hundreds of users, requiring multiple dsp and cpu cores. Other features will include several DDR3 memory controllers; baseband acceleration for turbo coding, fast Fourier transforms and MIMO; and interfaces for Ethernet, PCI Express and CPRI, according to Virk.

“The SoC in the cloud is going to give us the ability to do all sorts of new things,” said Tod Sizer, head of Alcatel-Lucent’s Bell Labs’ wireless research domain.

Intercell communication

Having baseband processors concentrated at one location enables intercell communication. One application is Coordinated Multipoint (CoMP), what Alcatel-Lucent calls networked MIMO, which will be a feature of the 3rd Generation Partnership Project’s (3GPP) Release 10 cellular standard.

Currently, only one cell serves a user, even if the user is commonly near the cell edge and is sensed by adjacent cells. With CoMP, MIMO technology can be used such that different streams are transmitted between the basestations and the user, boosting throughput. And it is this technique, says Alcatel-Lucent, which will double overall capacity.

The cloud like architecture will also enable new uses that benefit energy consumption. “One we are going to see in the coming years is coordination on the basis of energy usage,” said Sizer, citing how, for example, all users could be moved to the 3G network, with the LTE basestations turned off to save power, based on time of day and subscriber requirements. “You have that capability of moving users if you have control of both technologies from a single cloud,” said Sizer.

Power consumption has become a key issue for operators, with the likes of France Telecom looking to reduce the energy consumption in its network by 15% by 2020. In turn, US operator Verizon stipulates that each new piece of equipment must be at least 20% more energy efficient than its predecessor if it is to be deployed. Alcatel-Lucent is developing a virtualised radio controller architecture as part of the portfolio, working with HP to consolidate three generations of radio controllers into one platform. In GSM, the basestation controller (BSC) connects to multiple cell sites, while a radio network controller (RNC) is used in 3G.

“If I make the BSC or RNC a software routine, the software becomes independent of the platform and I can put both functions in one box,” said Gruba. Alcatel Lucent is basing the design on an ATCA version 2 based general purpose processor design, while HP is providing server and virtualisation expertise to the controller design. Alcatel-Lucent expects to be trialling the wideband active array antenna in the autumn before it becomes commercially available in 2012.

The remaining lightRadio elements will appear from 2012 onwards. Ken Rehbehn, principal analyst at the Yankee Group, says lightRadio is arguably the most important wireless equipment development made by Alcatel-Lucent since its 2006 merger. However, he points out that other vendors are pursuing comparable strategies that might challenge much of the lightRadio vision.

lightRadio: hideous cell towers to get smaller, lose the “hut” [Feb 2011]

Cell TowerEven when they’re disguised like fake trees or church steeples, cell towers are ugly. Most have a hut at the bottom, stuffed with baseband processing gear that does the hard work of creating and decoding, say, an LTE signal. These huts often contain signal amplifiers, big units that push power up the tower to the actual antennas—and half the signal is lost just moving through the tower’s wiring. At the top, rectangular antennas bristle from the tower. One set might be for 2G support, one for 3G, and another for 4G.

Alcatel-Lucent, one of the world’s biggest wireless gear makers, turned to its Bell Labs research division to rethink this aging architecture. First step: apply the “data center” model of centralization to baseband processing and consolidate all that rack-mounted hardware into a few locations per city, each connected to the towers it serves by fiber optic cable.

Right now, a cell tower fault might require a truck roll and a drive through traffic. When the tech gets to the tower site, it might turn out to be at the top of a hotel, and permission to access it must be obtained from the site manager. Put all the processing gear in a single remote location, however, and repairs to it get cheaper and faster.

Clustering the baseband units also makes it easier to do load balancing across a region. When commuters are driving into work, for instance, the baseband cluster can turn its combined energy to handling the signal load coming from towers along the highways and train lines. During the day, processing could handle heavy downtown traffic, while it shifts focus to the suburbs in the evening. Such load-balancing doesn’t produce any additional spectrum or data throughput, but it does mean that a carrier can operate fewer baseband processors, saving the carrier cash.

The third advantage to centralizing the baseband processors is that the interconnection fabric between them can operate at high speeds, fast enough to support a standard called CoMP, or Co-ordinated Multipoint. CoMP, which is currently moving through standardization, relies on the fact that, in many locations, a user’s wireless gadget is in range of multiple towers (the closer one comes to the edge of each cell, the more towers can typically see the device).

This is usually a waste, since multiple towers spend bandwidth contacting the gadget but can’t independently deliver different data. CoMP turns it into a bonus by dividing up requested download data and using all cells in the area to deliver a different slice of it at once—akin to the way BitTorrent operates. The phone then combines the data from all the towers in the proper order. This additive approach to using different towers means that a user’s total throughput can go up substantially, but it requires centralized baseband to function.

Finally, the new lightRadio baseband bear can do software-defined protocols. Upgrading to LTE? Just upgrade the software on the baseband processor. (Traditional rack-mounted baseband processors required dedicated units for each protocol.) A new baseband chip from Freescale makes it possible, but it gets even cooler when used in conjunction with the new wideband antennas.

LightRadio uses a new antenna that, in Alcatel-Lucent’s words, collapses three radios into one. The radios are tiny cubes of 2.5 inches square, and each can operate between 1.8GHz and 2.6GHz. They use tiny amps that can be located atop the tower, built into the antenna enclosure, which keeps the amp size down and dramatically cuts down on the power loss.

These radio cubes are stacked in groups of 8 to 10 in order to make an antenna element, and when one cube in the array goes down, the others remain unaffected. (In a traditional system, the whole antenna unit would fail.) The amps cover enough different frequencies that, in many cases, simply changing the software configuration on the baseband unit can control whether each antenna offers a 2G, 3G, or 4G signal.

The antennas also do “beam forming”—fine-grained directional control over the radio signal—in both the horizontal and vertical dimension to better connect with local wireless devices. Alcatel-Lucent claims capacity improvements of 30 percent through the use of vertical beam-forming alone.

The end result of the system: lightRadio cell towers don’t need huts, they don’t need air conditioners and heaters, big amps, fans, or even local processing gear. Baseband processing moves closer to the data center model and gets cool new capabilities like CoMP and load-balancing. The system’s cost savings come from power (Alcatel-Lucent claims a 50 percent reduction), along with lower construction and site rental fees. The total macro capacity of the system should double while cutting operator costs dramatically.

Though it will take months for any carrier to roll out this or similar gear, advances like lightRadio are crucial as wireless usage continues to soar and smartphones break out of the enterprise and the technorati and into the mainstream. And by making cell infrastructure smaller, cheaper, and less power-hungry, this sort of gear brings wireless networking into reach of more people, especially in rural areas and developing countries.

Alcatel-Lucent’s lightRadio™ portfolio wins NGN magazine leadership award for transforming mobile broadband networks [May 19, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that its lightRadio portfolio was recognized as the outstanding new achievement in broadband Internet communications by the leading industry magazine NGN, as part of its NGN Leadership Awards contest. The awards program recognizes outstanding products, services and technologies relating to next generation networks.

“This award underlines the sweeping impact our lightRadio portfolio is having on the wireless communications industry,” said Wim Sweldens, President of Alcatel-Lucent’s Wireless activities.  “lightRadio isn’t just redefining the shape of the wireless base station, it also offers a compelling vision for what wireless networks will look like in the future.”

“This award for Alcatel-Lucent’s LightRadio is a great testament to their innovation.  They have brought to market a solution designed to solve the most critical issues facing the wireless industry, starting with the quasi impossibility to add new sites to increase capacity and improve coverage,” said Stéphane Téral, Principal Analyst, Mobile and FMC Infrastructure, Infonetics.

lightRadio™ is a new product offering from Alcatel-Lucent that will dramatically reduce operating costs, technical complexity and power consumption in mobile broadband networks. Designed to meet the long-term needs of mobile operators seeking to ensure their networks can handle increasing traffic loads, lightRadio radically shrinks and simplifies today’s base stations.

The lightRadio portfolio is designed to increase network capacity while simultaneously reducing the cost of delivery, on a per bit basis. The overarching goal is to give operators more options and a flexible path forward for the next decade.  By increasing the capacity at a reduced cost the operators can pursue a whole new market segment, the mass market. In addition, being able to use the lightRadio cube technology in various forms means Small Cells can leverage the technology and rural villages can get wireless coverage at lower costshelping to cross the digital divide.

lightRadio promises greener, simpler, lighter networks, and the benefits are substantial, including:

  • 50% reduction in total cost-per-bit as compared to 3G when adding a comparable amount of capacity
  • 50% reduction in energy consumption when compared to conventional ground based solutions
  • Small and easily deployable – can be deployed anywhere there is a power source and broadband connection and deals with less zoning restrictions
  • Nearly invisible – the WB-AAA is two products in one. It’s adding another radio in the same size form factor with no additional lease cost or further pollution of the urban skyline.

The Alcatel-Lucent “lightRadio” product family is composed of the Wideband Active Array Antenna, the Multiband Remote Radio Head, the “lightRadio” Baseband Processing, the “lightRadio” Control, and the 5620 SAM common management.  The Wideband Active Array Antenna will be trialed later this year and have broad product availability in 2012. For more information on the lightRadio portfolio please click here.

Bell Labs lightRadio™ Breakthroughs [Feb 7, 2011]

The world of mobile communications moves fast. With new mobile devices, new applications and ever-growing and changing consumer demands the wireless networks in use today have to evolve. Rather than take an incremental approach to meet these challenges, Bell Labs took a leap and developed a radically new approach to wireless technology. In order to do this, Tod Sizer, head of Bell Labs Wireless Research, challenged his team to think not just “outside the box,” but to think “inside the cube.” In six short months, the team developed a cube-shaped antenna that would fit in the palm of a hand – and was ready to test it with customers.

Tod Sizer, Head of Wireless Research for Alcatel-Lucent Bell Labs, talks about developing the lightRadio antenna module. lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

“There are many different types and sizes of base stations, from very small to very large, depending on where they are located, such as in an urban or rural area,” explained Sizer. “I realized that we needed to design a new and flexible type of antenna array for different environments– including one designed to the smallest possible size – ‘invisible antennas’ – in order to be flexible enough to meet the growing needs of all of our wireless service provider customers.”

A radio antenna element is a component of an antenna system that transmits signals from the wireless base station to a wireless end-user using a mobile phone, smart device or laptop. By reducing the size of the element itself, an antenna array can be scaled to fit any wireless need simply by adding more of these elements to the array.

Bell Labs wireless researchers weren’t daunted by the challenge of building something that was roughly ten percent of its current size. Several wireless research teams in Stuttgart and Ireland focused on different aspects of the problem, combining their unique areas of expertise to quickly resolve a myriad of technical challenges to reduce the antenna element’s size, improve energy efficiency and lower manufacturing expenses. The clever architecture of this new antenna is but one of the innovations critical to realizing Alcatel-Lucent’s unique lightRadio portfolio.

“We believe this unique antenna – as part of the lightRadio solution – will have a significant impact in the wireless space,” concluded Sizer.

Quick Links

Wim Sweldens presents lightRadio, a breakthrough for the mobile industry [Feb 7, 2011]

Wim Sweldens, President, Alcatel-Lucent wireless activities, talks about lightRadio™, a new system that signals the end of the mobile industry’s reliance on masts and base stations around the world.
lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.
More info: http://www.alcatel-lucent.com/lightradio

Alcatel-Lucent. Cube light Radio [Feb 18, 2011]

Highlights of lightRadio press conference [London, Feb. 7th, 2011]

Presentation of the lightRadio system which will dramatically reduce technical complexity and contain power consumption and other operating costs in the face of sharp traffic growth. This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically shrinking and simplifying them. Conference guests: Stephen Carter, Wim Sweldens, Tod Sizer and Javier Garcia Gomez (Alcatel-Lucent), Lisa Su (Freescale) and Joe Weinman (HP).