Alcatel and China's Dantang Mobile have inked an agreement to collaboratively push for handsets compliant with the TD-SCDMA (Time Division Synchronous Code Division Multiple Access) standard. The deal was signed through Alcatel Shanghai Bell, Alcatel's subsidiary in China, and marks the first of its kind among the TD-SCDMA Alliance members.

 

From Alcatel, Datang Mobile will receive an investment of 25 million Euros (US$32.3 million; US$1=0.8 Euro) for system integration, product planning, and manufacturing, while approximately 150 million RMB (US$18.1 million; US$1=8.3 RMB) of the investment will be exchanged for a 3% stake in the Chinese company.

 

Alcatel will support R&D activities involving the TD-SCDMA technology and become an important ally of Datang Mobile in rolling out TD-SCDMA devices. Under the partnership, Datang Mobile will adopt Alcatel's core system and applications for TD-SCDMA solution.

 

The two companies are expecting to roll out the first TD-SCDMA handsets to the domestic market by June 2005.