Ericsson will develop technology to support new TD-SCDMA high speed mobile phone networks in China, the company's technology chief said on Tuesday. Chinese operators are now evaluating different 3G technologies, which allow users to transmit pictures and use e-mail through their phone. Ericsson currently has no technology to support TD-SCDMA standards, expected to be one of several mobile network platforms which may be deployed. Ericsson will either develop the technology itself or in partnership with other firms, Chief Technology Officer Hakan Eriksson told Reuters on the sidelines of the company's capital markets day.

"We will be involved in one way or another, either through partnerships or by developing our own equipment," he said. Finding a partner to develop the technology, however, may be difficult. "I am sure Ericsson will make the right tactical move, but there is no Chinese firm left to create a partnership with and it will be interesting to see if they are able to push someone else out," said one analyst who declined to be named.

Ericsson says it expects a reform of the telecoms industry in China in 2005 to trigger the issuing of 3G licenses.

Copyright Reuters, 2005