L.M. Ericsson announced it has formed a strategic alliance with China’s ZTE to collaborate on TD-SCDMA solutions for China.
TD-SCDMA is a Chinese-developed technology expected to be used for third-generation networks in the country. The Chinese government, however, has yet to award 3G licenses or name specific network technologies. The Chinese 3G licensing process has been continually delayed, although four licenses are expected to eventually be awarded.
According to the agreement, Ericsson will integrate ZTE’s TD-SCDMA Node B into its radio access network on an original equipment manufacturer basis. The deal includes hardware and software.
The two companies also will team to conduct TD-SCDMA trials in China.
In related news, Ericsson announced plans to establish a new research and development center in Nanjing, China, which will focus on development of TD-SCDMA products. The center is expected to initially house 50 research employees.
Ericsson announced earlier this month it will put the brakes on its CDMA business and close its U.S.-based CDMA headquarters.
Ericsson rival Siemens AG has led the way in foreign-supplier TD-SCDMA investments, already spending up to $170 million in the technology.
