Telecom News - Nov 2007: Rising Demand For 3G Mobile Telecom Chips
In the November issue of Global Telecom News:
- Korea’s SK Telecom acquires Hanarotelecom
- Rise of HTC in Taiwan and how it is playing dual game with windows and linux
- 3G pushes demand for chip industry
As we have been discussing, SK Telecom, Korea’s top wireless service provider, had plans to expand its business. But SKT has not yet made a move outside Korea. It has been announced that SK Telecom will take over the country’s second-largest telephone and broadband line provider, Hanarotelecom. SK Telecom’s acquisition is expected to trigger a flurry of mergers and takeovers in and outside the telecommunications industry, according to Korea Herald. The stocks of SKT have soared on this news.
Taiwan’s High Tech Computer (HTC) is the largest maker of mobile phones running on Microsoft Corp’s system. Now it is hedging its bets by going with Google’s android and it joined on the open handset alliance. HTC also expanded a distribution agreement with U.S-listed Brightpoint to improve the global reach of its entire range of products and services.
The business opportunities of the third generation (3G) mobile telecommunications chips booms in China. Chinese government has officially announced to support TD-SCDMA and GSM (GPRS) as the mobile telecommunications standards in China. Taiwan Business News reports that this means that a few companies will benefit from this.
ZTE Corporation, in charge of the TD-SCDMA network establishment in Beijing, Qin Huang Dao, Xiamen and so forth, says that the network establishment in most areas and Olympic game stadiums in Beijing will be completed by the year’s end. The network coverage rates in Liaonin, Tienjin and Shenzhen will top 90 percent. The TD-SCDMA mobile telecommunications network will be able to come into use in the top ten cities late this year or early next year.
Because the infrastructure deployments are almost completed, China Mobile, the largest telecommunications company in China, as one of TD-SCDMA system conductors, plans to launch the first tender case of around 2 million TD-SCDMA handsets in November. The company estimates that the subscribers will number over 12 million in the top ten cities by the year’s end. A source says that there is an explosive growth period shortly ahead for China’s 3G telecommunications market, when the tenders and the subscription of end-user products begin.
To seize the huge business opportunities of TD-SCDMA standard, Motorola, LG, Huawei Technologies, ZTE and Legend Holdings Ltd have put on the market the TD-SCDMA-supported 3G cell phones, which drives the 3G mobile telecommunications chips’ sales volume straight up. TSMC confirms that the 3G mobile telecommunications chip orders are indeed very strong.
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