New China alliance for Ericsson

Swedish telecommunications giant Ericsson said on Thursday that it had teamed up with China's leading telecom equipment maker ZTE for mobile network solutions in China and that it would open a third-generation (3G) wireless research and development center in the country.

The strategic alliance and the research center, based in Nanjing in east-central China, are both aimed at the development and delivery of Time Division Synchronous Code Division Multiple Access (TD-SCDMA), a technology invented in China aimed at simplifying the creation of 3G networks.

“Ericsson has always been dedicated to providing advanced mobile products and solutions that can best address the needs of local markets,” head of Ericsson’s China division Mats Olsson said in a statement.

“With our alliance with ZTE, I am confident that we are very well positioned to capture the huge opportunities presented by China’s fast-growing mobile market,” he added.

The deal calls for Ericsson to integrate some of ZTE’s TD-SCDMA technology into its own network, and the two companies have also agreed to team up on trials of the technology in China.

The new research center, meanwhile, will open with 50 employees.

China today counts some 300 million mobile phone subscriptions, a number that increases by about five million each month.

Ericsson, which employs 3,600 people and has nearly 25,000 suppliers in China, currently holds about 40 percent of the country’s mobile market, with its Chinese operations accounting for 10 percent of its overall results. (AFP)