Asia Express - East Asian ICT
Mobile Communications - Chinese Operators, Equipment Makers Form Alliance
November 01, 2004
Nine Chinese companies are joining forces in an alliance formed to promote the development of China's telecommunications sector. The consortium will be called the MMTA (Mobile Multimedia Technology Alliance), and it includes operators such as China Mobile, China Unicom, China Telecom, and China Netcom, as well as equipment providers such as Huawei, ZTE, Putian, and Vimicro. The remaining member is the Ministry of Information Industry's China Academy of Telecommunication Research.


The objective of the MMTA is to help domestic companies make inroads in the standardization of telecom networks, terminals, and applications in China. The MMTA hopes to accomplish its goals and accelerate technical innovation through the integration of various players in the value chain. The effort to link together leading Chinese companies is widely seen as an attempt to enhance the competitiveness of domestic players in the race to adopt and market the soon-to-be-released 3G offerings.


In addition to the current line up of terminal/network equipment suppliers, research institutes, and operators, the alliance has plans to expand its membership to include core chip technology providers, software developers, and Internet content providers. Foreign firms are apparently eligible to join the alliance, but reports suggest that the rules of membership will be significantly different for foreign applicants. Further details about rules governing foreign firms are expected within a few months.