According to In-Stat Group, a research company in the United States, TD-SCDMA, the third-generation (3G) mobile phone specification in China, is likely to result in a significant growth opportunity for China.

As TD-SCDMA penetrates, Chinese companies will advance technical development and consequently own more patents. As a result, the value of both patent royalties and manufacturing costs that Chinese companies are paying will lower.

Due to the sluggish technical development of the specifications, however, licensing has lagged behind. In-Stat Group analyzes that "The Chinese government considers promoting the diffusion of TD-SCDMA rather than W-CDMA and CDMA2000, but the current TD-SCDMA specification at a test phase is far behind the marketable stage."

According to the company's press release, if China Mobile Ltd. of China acquires a TD-SCDMA license, TD-SCDMA mobile phone subscribers in China will rapidly increase in 2008 forward and reach 52 million people in 2011.

However, In-Stat Group forecasts the development of TD-SCDMA mobile phone handsets will lag behind the development of telecom facility systems. This is primarily because of issues related to consumption power and seamless switch of dual modes, the company explained.

Source: techon.nikkeibp