ST-Ericsson wins China Mobile contract to build out TD-SCDMA

China Mobile announced May 26 that it has selected ST-Ericsson's company in China, T3G, as a major technology partner for the development of its high-end and low-cost handsets, based on the 3G standard TD-SCDMA. ST-Ericsson will also support four of its customers to commercialize their mobile phones during 2009-2010.
 
Under the agreement, ST-Ericsson, the 50/50 joint venture between Ericsson and STMicroelectronics, will develop a new low-cost platform for its customers so that they can offer affordable TD-SCDMA devices to consumers in China. ST-Ericsson will also help its customers to develop high-end mobile phones, based on existing and new platforms such as the T7210, which will allow consumers to access high-speed broadband and multimedia services.
 
"Although ST-Ericsson is a recent joint venture, our subsidiary T3G has been actively developing platforms for the mobile standard for more than six years, achieving an impressive record of world firsts in bringing innovation to China," Alain Dutheil, President and CEO of ST-Ericsson, said in a prepared statement.
 
ST-Ericsson's T7210 mobile platform supports TD-SCDMA dual-band in 2010-2025MHz/1880-1920MHz frequencies, and has successfully completed handovers of voice and high-speed data services in order to operate optimally in Chinese dual-band network environments.

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ST-Ericsson is under intense pressure to find growth opportunities and major design wins. Last week, it announced plans to cut 146 jobs in France and wind down operations at its plant in Caen, France, in response to poor market conditions.

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China is the one place where the market is really picking up today," Dutheil is quoyed as saying. "The Chinese government has initiatives to restart consumption and there are big investments by telecoms operators. Development of the TD-SCDMA standard is boosting demand and we are now well positioned with Chinese suppliers.

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