Alcatel Tangos With Datang

Alcatel SA (NYSE: ALA; Paris: CGEP:PA) has struck a partnership deal with Chinese vendor Datang Telecom Technology Co. Ltd. for the development of Time-Division Synchronous Code Division Multiple Access (TD-SCDMA) technology, a pairing initially touted by Unstrung earlier this year (see Alcatel to Tango With Datang? and Alcatel Mulls Chinese Move).

Developed by the Chinese Academy of Telecommunications Technology, TD-SCDMA has been approved by the 3rd Generation Partnership Project (3GPP) and combines older Time-Division Multiple Access (TDMA) with Time-Division Duplexing (TDD) techniques of broadcasting over a single chunk of spectrum, rather than the normal two bands (see TD-SCDMA Forum Joins 3GPP).

According to a joint statement, Alcatel will invest €25 million ($32 million) in Datang Mobile and take a share in the Chinese vendor. The companies will use Alcatel's manufacturing base in Shanghai to produce TD-SCDMA equipment, due for launch in June 2005 (see Alcatel Teams With Datang).

“Datang Mobile will adopt Alcatel’s core system and applications for TD-SCDMA solution,” according to the press release.

Further details were not immediately forthcoming at press time. Datang was unavailable for comment, while the Gallic incumbent is enjoying a national public holiday [ed. note: Zut Alors!].

Neither company is a stranger to 3G infrastructure partnerships. Alcatel has an established deal with Japanese vendor Fujitsu Ltd. (OTC: FJTSY; Tokyo: 6702) for the development of Universal Mobile Telecommunications System (UMTS) kit, while Datang has previously teamed with Nortel Networks Ltd. (NYSE/Toronto: NT) and Siemens AG (NYSE: SI; Frankfurt: SIE) on the development of TD-SCDMA (see Alcatel Evolves Fujitsu Deal, Siemens Prepares for China Deal, and Nortel, Datang Open 3G Lab).

— Justin Springham, Senior Editor, Europe, Unstrung

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