2010-04-20

Strategic cooperation with datang for mobile technology development in china

• Richer mobile communications for millions of Chinese consumers

• Research, development and commercial cooperation within TDD technology

Ericsson (NASDAQ:ERIC) has signed a memorandum of understanding to establish strategic cooperation with Datang Telecom Technology & Industry Holdings Co. Ltd. (Datang) to jointly develop advanced TDD solutions, with the goal to deliver richer mobile communications to consumers in China and around the world.

As part of the memorandum of understanding, Ericsson will start integrating Datang's current best-in-class TD-SCDMA radio access network equipment into its own 3G mobile communications offering.

More than six million mobile users in China are already enjoying mobile services through this technology. TD-LTE being the next generation of TD-SCDMA technology is also being tested pre-commercially to satisfy the growing appetite for higher speed and richer applications of the Chinese mobile subscribers in due time.

Ericsson set up a joint research center with Datang in Beijing as early as January 2008 to carry out research cooperation in TDD technology. The strategic cooperation formed now takes the relationship between the two parties to a substantially new level.

The strategic cooperation aims to leverage Ericsson's leading position in global mobile communications, its unique experience from global LTE commercial deployment and its common platform for FDD and TDD, as well as Datang's industry-leading expertise in TDD technology. Such move will increase the industrialization capabilities of TDD solutions by achieving economies of scale, improve the interoperability of operators' 2G/3G/4G networks, and provide support to a successful commercial launch of TD-LTE in China in the near future.

"Leveraging our global leadership position in LTE, we have been firmly committed to evolving TD-SCDMA to TD-LTE," said Mats H Olsson, Head of Region China & North East Asia of Ericsson. "Now we are further strengthening that commitment by this strategic cooperation with Datang. Our promise remains the same: we will always strive for providing the best TDD products and services to the Chinese consumers and to the world."

Chen Shanzhi, Vice President and CTO of Datang Telecom Technology & Industry Group said: "Ericsson is the world-renowned telecom solutions and services provider. The cooperation between Ericsson and Datang to jointly develop TDD products and solutions demonstrates the recognition of Datang's innovative R&D results, industrialization and market capabilities in the TDD field from mainstream telecom suppliers in the world. We believe that our joining forces will drive the globalization of TD-SCDMA and play an important role in the industrialization of TD-LTE in the long run." Chen Shanzhi continued, "The strategic cooperation that we establish now will help both parties to fully leverage on our respective resources so that we can together provide products and services that meet the requirements of China Mobile."

Datang Telecom Group is the initiator of the 3G mobile communication TD-SCDMA international standard, the owner of its core intellectual property rights and an important promoter of its industrialization.

Information about the company: Telefon AB LM Ericsson