The ongoing trial of TD-SCDMA, the home-grown third generation (3G) mobile standard, will end in the third quarter of this year.

So said Yang Hua, secretary-general of the TD-SCDMA Industrial Alliance.

A source with one of the three telecom operators involved in the trial said it is expected to conclude in late July.

The trial, believed to be the last test before licenses are granted for commercial use, has been carried out in five Chinese cities since last month.

TD-SCDMA is a mobile telephone standard for wireless network operators which want to move from a second generation (2G) wireless network to a third-generation (3G) one. There are other 3G standards, such as WCDMA, but China has also developed its own, TD-SCDMA.

The five trial locations are Beijing, Shanghai, Baoding in Hebei Province, Qingdao in Shandong Province and Xiamen in Fujian Province.

"These are the final preparations for commercial operation," said Yang, adding: "Previous trials have greatly accelerated the development of the whole industry."

He said a complete TD-SCDMA industrial chain, from core networks to antennas, has been established, laying a solid foundation for the healthy development of the sector.

Yang expected TD-SCDMA mobile phones to be ready in the third quarter of this year.

Many industry veterans believe handsets are the weakest link in the TD-SCDMA industrial chain.

Yang said handsets now have the basic functions and have improved significantly this year.

"Handset reliability and power-saving capacity have reached the level of commercial operation," he said. "At the moment, our major task is to develop new applications in the handsets."

Yang said the number of TD-SCDMA handset developers has increased, from 12 in 2005 to more than 20 this year.

He said the current annual shipment capacity is millions of units.

"With increasing market demand, the capacity will further rise," added Yang.

Yang also said TD-SCDMA network equipment is already getting closer to commercial standards.

Network equipment vendors include Shenzhen-based ZTE, Beijing-based Datang and TD Tech Ltd, a joint venture between Siemens and Huawei.

It is thought equipment supplied by TD Tech is being used in Baoding and Xiamen.

TD Tech CEO Steven Yeo said the firm which was only set up last year is ready for the commercial use of TD-SCDMA.

It will roll out the second lot of TD-SCDMA commercial products in mid-2006, which will be more compact and easier to transport and install.

"TD Tech has successfully changed from a research and development company into a vendor that has extended its business to manufacturing and sales," said Yeo.

TD Tech has developed a wide range of commercial application solutions, he added.

Wang Zhong, vice-president of the firm, said it has developed a solution for users to roam between GSM (Global System for Mobile Communication) and TD-SCDMA networks.

He said it will take time for the 3G signal to cover every part of China, so GSM will supplement the lack of 3G coverage during the early stages.

He added that TD Tech has developed a fixed-mobile convergence (FMC) solution, particularly useful for fixed-line operators. FMC describes a wide range of mobile services that 'converge' aspects of fixed communications infrastructure to complement mobile services.

There has been speculation that when fixed-line incumbent China Telecom has the TD-SCDMA license it will become a full service provider so it can resist losses brought about by the increasing number of calls made on mobile phones.

(China Daily April 21, 2006)