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Rumor: 19 Vendors Compete for TD-SCDMA Handset Contracts

Sina Tech, 12/21/07

According to an informed source, 19 firms are to compete for China Mobile's (NYSE: CHL; 0941.HK) upcoming orders for 40,000 TD-SCDMA handsets and data cards. 15 of these have already obtained National Development and Reform Commission (NDRC) TD-SCDMA licenses, including ZTE (0763.HK; 000063.SZ), Datang, Hisense (600060.SH), Lenovo (0992.HK), Amoi (600057.SH), Ningbo Bird (600130.SH), Motorola, Haier, Yulong, Samsung, LG, Holley (600097.SH), Huawei, BenQ (2352.TW) and UTStarcom (Nasdaq: UTSI).

The NDRC issues licenses on the basis of handset licenses from the Ministry of Information Industry's China Academy of Telecommunication Research (CATR), and in effect MII licensing means receiving NDRC approval. The remaining four firms, including Inventec and HTC, are developing TD-SCDMA phones, but will need to acquire a license or partner with a license-holder if they are to participate in the procurement process.

Keywords: China Mobile CHL 0941.HK TD-SCDMA 3G mobile phone bidding procurement operator-customized handset data card NDRC handset manufacturing license ZTE 0763.HK 000063.SZ Datang Mobile Hisense 600060.SH Lenovo 0992.HK Amoi 600057.SH Ningbo Bird 600130.SH Motorola Haier Yulong Samsung LG Holley 600097.SH Huawei BenQ 2352.TW UTStarcom UTSI CATR Inventec HTC wireless

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