BEIJING-Samsung Electronics said it formed a joint venture with Shanghai Bell to develop, produce and market CDMA systems in China. The Chinese government approved the new company, named Shanghai Bell Samsung Mobile Communications, which has a total investment of US$29 million.
Ownership will be 51 percent by Shanghai Bell and 49 percent by Samsung. Initial paid-in capital will be US$12 million. Production will start in the first quarter of next year. The venture will manufacture infrastructure equipment, but no handsets. Samsung is still looking for partnerships to produce CDMA handsets in China.
Samsung said the local company will enhance its efficiency in importing and exporting from China.
China Unicom, which will launch a CDMA network within the next few months, plans to open a second tender next year for CDMA equipment. Samsung said it will be in a “more favorable position to win new orders in the CDMA mobile communications system market, which is expected to accommodate 70 million subscribers within the next five years.”
Seven telecom vendors will set up trial networks to showcase their cdma2000 1x solutions in China, hoping to be selected for huge upgrade contracts. The winner or winners are expected to be announced early next year.
Eleven companies took part in building China Unicom’s second-generation (2G) CDMA network, sharing contracts worth 12.1 billion yuan (US$1.5 billion).
