Nokia Siemens and Ericsson May Win 20% of Chinese 3G Tender

China Mobile is expected to announce the winners of its US$4.4 billion 3G network tender, with Nokia Siemens Networks (NSN) and Ericsson both expected to receive around 10% of the contract each. The contract is for the second phase of China Mobile's trial TD-SCDMA based service which aims to expand the network to a further 28 cities.

Sources told the South China Morning Post that ZTE could win a 30-35% share while Huawei could get over 20%. The share allocated Datang Mobile and its partner, Alcatel-Lucent is expected to fall to around 15-20%.

The reason for awarding contracts to the two foreign infrastructure vendors is thought to be due to a need for development expertise. "Mainland equipment vendors seem to need foreign research and development resources for next-generation technology."  an industry watcher told the newspaper. China Mobile recently said that it plans to open an R&D centre in the USA's silicon valley to boost its expertise in handset developments for its 3G network.

China Mobile is widely understood to be working with handset OEMs on developing a range of smartphones based on the Google backed Android operating system. The company has also been rumoured to be working on its own OS platform for 3G phones which would be sold for use with the TD-SCDMA network.

Nokia Siemens Networks (NSN) shareholder, Nokia is also a 49% holder in a Chinese joint venture, Potevio with China Putian to develop network infrastructure based on the Chinese 3G standard. Potevio was set up in 2005 and has also been the major supplier of equipment to China Mobile's TD-SCDMA trial networks in Tianjin and Qinhuangdao.

NSN itself was a major solution supplier for China Mobile Shenzhen TD-SCDMA networkÃ's planning, construction and optimization phase. Ericsson set up a joint venture with ZTE in early 2005 to develop TD-SCDMA based infrastructure, and according to research of Analysys International has won a small contract since then.

NSN shareholder, Nokia is also a 49% holder in a Chinese joint venture, Potevio with China Putian to develop network infrastructure based on the Chinese 3G standard. Potevio was set up in 2005 and has also been the major supplier of equipment to China Mobile's TD-SCDMA trial networks in Tianjin and Qinhuangdao.

On the web: South China Morning Post

Posted to the site on 31st October 2008