MUNICH -- Siemens Communications sees clear confirmation of its business strategy for China after the Chinese government officially declared TD-SCDMA as the national 3G standard. The company has developed TD-SCDMA for the local market, working with Chinese partners from the start. The solution has proven itself in various tests, and the network and various end-user devices interact smoothly. Through TD-Tech, a joint venture with its partner Huawei, Siemens will be able to ship TD-SCDMA equipment beginning in mid-2006. In addition, Siemens is one of the leading vendors for W-CDMA. This 3G standard is also expected to become established in China. The 3G licences are still to be issued.

Since 1998, Siemens Communications has invested more than 170 million euros in developing the TD-SCDMA standard, which is recognized by the ITU, and has already successfully tested many products for use in TD-SCDMA networks together with the Ministry of Information and Industry (MII). These products include base stations and their control hardware, and operation and maintenance centers in telecommunications networks. Since mid-2005, vendors of end-user devices have been able to test their products and the products’ interoperability with new applications in an open laboratory. The most recent tests have demonstrated the smooth interaction between TD-SCDMA technology and mobile phones and laptops. The best results were achieved by the joint venture partners Siemens and Huawei and their technology.

The distinguishing features of the Chinese 3G standard are that it uses the 155 MHz frequency spectrum specified for China with outstanding flexibility, transmits large volumes of data without problems and offers a large radio range. That makes TD-SCDMA very suitable for use both in large cities and in rural areas as a technology to provide widespread coverage.

Siemens AG (NYSE: SI; Frankfurt: SIE)