Q: Would you please give us a brief introduction to which areas are you involved in TD-SCDMA?

Dilithium Networks focuses upon 3G video. Our core technologies are developed in accordance with 3G.324M standard, which supports video communication services over 3G networks. 3G.324M standard was developed by 3GPP and 3GPP2 for video services and was adopted by TD-SCDMA for video services. In the past few years, we mainly focused on WCDMA. Our major products and technologies include: first, 3G.324M protocol stack software for the development of video-enabled mobile handsets; second, Dilithium Networks Analyzer (DNA) for the development of mobile handsets and network video equipment. It can be used to analyze and test 3G.324M equipment, such as conformance testing and interoperability testing; third, DTG2000, a transcoding multimedia gateway. It supports the communications over 3G mobile terminals and IP video terminals, and the application of video contents. Over two years ago, our team in North Asia and greater China region started to report the development of TD-SCDMA to our headquarters. For instance, we have invited our CEO to visit Datang Mobile, China Academy of Telecommunications Research (CATR) and TD-SCDMA Alliance and meet the leaders to know the development of this standard, of which Chinese enterprises hold significant IPRs. Through these activities, our senior management acquired a good understanding of TD-SCDMA business. With the support of the headquarters, we provided protocol stack software and testing analyzers for Datang Mobile to jointly develop the first TD-SCDMA video handset. Several months later or in mid 2004, Datang demonstrated this handset to the leaders of the Ministry of Information Industry (MII), showing that TD-SCDMA video handset can have the same functions as WCDMA video handset.

Q: What are the differences with video application in WCDMA, CDMA200 and TD-SCDMA? 

A: With regard to the quality of WCDMA and TD-SCDMA video services, I think that they can reach the same level from the technological perspective, including video quality on terminals. However, at present there is a small range of TD-SCDMA handsets available. When TD-SCDMA video handsets get more mature, I believe the difference of video effects will disappear. At present the application of video services in TD-SCDMA and WCDMA networks is the same, including the application in both CS and PS domains while the video application in CDMA2000 networks is mainly in PS domain. As for the CS-based application in CDMA2000 networks, we have to wait and see its further development.  

Q: As we know, Dilithium Networks has the experience in developing video services for both TD-SCDMA and WCDMA networks. Could you compare their pros and cons?

A: Our video technologies are widely applied in WCDMA networks. For example, Qualcomm’s 6250 chip solutions are widely adopted by many manufacturers as the platform to develop WCDMA handsets.

Q: Could you specify which companies adopted video telephone technologies developed by Dilithium Networks?

A: In the area of TD-SCDMA, I can only specify the name of one company, Datang, our major partner in developing mobile handsets. When the time comes, I can tell you the names of other partners.

Q: Do you think that video services developed by your company can pass the TD-SCDMA testing?

A: At present, the testing is focused upon basic networks. There are also some demos and testing on gateway application. It is expected the next-phase systematic testing will be organized by CATR and TD-SCDMA Alliance. We have demonstrated our video application in WCDMA and TD-SCDMA trial networks to the leaders and operators.

Q: Could you give us a brief introduction to AnswerFast Plus technology?

A: This technology is mainly used in handsets and gateways to shorten call setup time and improve the experience of end users in the process of video call so that the users may have similar experience as 2G handsets in terms of call setup time. For detailed information, you may visit our website. For specific project, you may also contact our team.

Q: Can your technology be applied in on-line gaming over mobile handsets?

A: With respect to on-line gaming over mobile handsets, I can say that if the games are CS-based, they are the same as ordinary video communication and if they are PS-based, 3G terminals are capable of supporting on-line gaming. 

Q: Could you tell us a little about your DNA?

A: For detailed information of our DNA, you may visit our website for product description or provide your e-mail address to the TD-SCDMA Forum, through which we can e-mail product description to you.

Q: Have you ever contacted any operator?

A: As a matter of fact, we had very frequent communications with operators. The R&D center of China Mobile has adopted our DNA to test 3G video services. In the application front, our communication with operators has never stopped. In 2006, we will demonstrate new services and application to the leaders and planners of market operation of telecom operators through our demo system so that they could make a decision based upon practical trials, experience and judgment. 

Q: Is Ericsson your competitor? How do you view your competitors?

A: This question is about the competitive and cooperative relationship in the field of TD-SCDMA. First, I believe that competition is a driving force behind technological progress and quality improvement. If there are many vendors participating in the competition for the development and application of TD-SCDMA products, it’s good for the development of this industry. But operators have the final say whether to select which equipment and technology. Of course, they will choose the system and products with better quality and performance for commercial services. 

Q: What is the prospect of video communication over mobile handsets in China? What challenges it will face?

A: This is a very important issue concerning the development of 3G video services. In light of the development of WCDMA over the past few years, there are a lot we have to improve. But the industry has reached broad consensus. I’d like to give you some examples. First, many friends have noticed that what really matters is what the habits of end users using 3G video handsets are and for what types of communications they will use video communications. Many users feel that video communication is not suitable for work, but for the communication between family members and friends. For instance, you are on a business trip, you may have video communication with your parents and children. This is considered as a suitable communication form. It can also be used in information services and entertainment. Take Beijing Olympic Games as an example. It is a grand event attracting the attention of all Chinese and the people in the world. The 3G video terminal will become a very important personal information media. During the Olympic Games, the results of matches and races will be a great focus. The information can be delivered to different terminals through different media. If you wish to watch a complete soccer match live, TV is probably the best media. But there are people who cannot stay beside TV for various reasons such as working, but have a strong desire to catch up with the development of matches. For instance, some wish to know whether Liu Xiang wins the gold medal immediately after the match is over. Others wish to watch the match from the very beginning through different media. For one match, there are two types of demands: knowing the results and knowing the process. The first type of demand can be fed through SMS or MMS with the supplementation of streaming media rebroadcast or clips. The 2^nd type of demand can be met through 3G video terminals. 3G subscribers can access the portal of mobile operators anytime anywhere to watch the whole process of 110m-hurdle race. These examples show that we must adopt market segmentation methods to design suitable 3G video services while developing 3G video application. Looking into the future, we feel that TV, plane media, Internet, and personal mobile terminals, especially 3G multimedia terminals will form a complementary and integrated system of personal communication, information and entertainment to meet different needs of different people for communications at different time and places and on different occasions. 3G handheld terminals can meet the needs for communication anytime anywhere. They are personalized terminals, unparalleled by other terminals. They enjoy huge potentials for further development. From the perspective of China’s 3G operators, 2008 marks the beginning of a new communication era to provide Olympic information for 3G video subscribers through various means (SMS, MMS, live broadcast, streaming media rebroadcast, web page browsing, etc) on the mobile communications networks. If 3G is launched timely, China’s 3G services and application will take the lead in the international arena after 2008 Beijing Olympic Games. The success of SMS is a typical example. When the Spring Festival comes, we all send SMS to pay a new year call to our friends, families and workmates. From the eve to the first day of Spring Festival, SMS has become a successful service in the communication sector. From the marketing perspective, the success of SMS is a combination of text message with the tradition of the Chinese people to pay new year calls.

Q: Would you please predict which 3G application will succeed?

A: According to the feedback we got from the market, we feel that video application for the communications between family members or friends will enjoy a huge potential of growth. As for video communications and entertainment, I’ve already given you the example of the Olympic Games. I think they will have their chances of success.

Q: For the industry and users, they are concerned of whether major 3G standards can be unified or there will be problems with the communications between these standards. What do you think about that? 

A: This question concerns the convergence of 2G and 3G, including the convergence of broadband services over 3G networks and IP networks. It is a process of service and application expansion. 3G networks will have to offer services already delivered by 2G and GPRS networks, such as SMS, MMS, color ring back tone, voice mailbox. New services with video as the core will be added, including video call from mobile terminals to video terminals, multi-party video telephone conference on mobile terminals and IP video terminals, video mailbox, video color ring back tone, and live information services in CS domain and PS domain, such as the Olympic broadcast, family security system, monitoring of elders’ residence.

We believe that there is no problem with the interconnection between TD-SCDMA and WCDMA networks. Video communication is possible not only between TD-SCDMA subscribers but also between TD-SCDMA and WCDMA subscribers. Transnational communication will also be available. With respect to the interconnection between major 3G standards, there is not problem with the interconnection of voice and video services from the perspective of technical standards. We participated in the TD-SCDMA development and we provided DNA, one of whose functions is the interconnection of videophone between TD-SCDMA subscribers, between WCDMA subscribers, or between TD-SCDMA and WCDMA subscribers.

Q: Most of 3G handsets in the market are WCDMA handsets. It’s rare to see TD-SCDMA handsets. As a consumer greatly concerned of China’s 3G industry, what I care is the interconnection issue. 

A: Actually many chip makers and handset manufacturers are developing TD-SCDMA video handsets. I believe there will be more types of TD-SCDMA handsets available in the market very soon. A major decision that will affect the development of TD-SCDMA industry is to provide sufficient types of TD-SCDMA video handsets for Chinese consumers. As far as we know, not only major Chinese manufacturers but also well-known international handset manufacturers are developing TD-SCDMA video handsets. As the commercialization of TD-SCDMA approaches, we believe that the development of TD-SCDMA video handsets will speed up with the joint efforts of both domestic and international manufacturers.  

Q: Most of 3G operators do not perform well and data business is so not hot as expected. So how do you think about that? 

A: Looking back upon the development of 3G in the past few years, we can say that Japanese and European operators took the lead. There are also some new operators coming in. When 3G networks were rolled out in some countries and regions, the operators met some challenges in introducing attractive services and application that can generate satisfactory economic returns. Through our discussion with operators and equipment vendors and based upon our consumer analysis, I feel that the consensus we reached is that 3G multimedia communication network and personalized terminals will bring about more and better multimedia communication forms in the new era. However, different countries and regions have different cultures, living habits, and ways of communication. Therefore, demands for multimedia communications are diversified and differentiated. Take SMS and voice mailbox as an example. In North American and European markets, voice mailbox generated considerable revenues and profits for operators. while in China and other Asian regions, voice mailbox is less used while SMS is every popular. Therefore, we feel that the primary task in the process of deploying 3G in China is to explore and develop services and application suited for Chinese subscribers. This needs the early participation of marketing and planning teams of operators. 

Q: What is the status quo of mobile video application in foreign countries? One short question, how can we walk safely while watching TV or having a video call?

A: We believe that this year and next year will embrace a new round of investment. Many WCDMA operators that have constructed 3G networks start to make more input to develop new services including video services. if you follow the market trend closely, you may find that there will be more and more services to be introduced to end-users. With regard to watching TV on 3G handsets, there is a lot discussion going on. What is worth mentioning is that whether 3G video terminals are suitable for watching TV programs for a long period of time. We think 3G video terminals are communications tools that have multimedia functions. It may not be suitable for watching long TV programs. Take the Olympic Games as an example. 3G terminals may not be suitable for watching soccer match, which is long and big. But such terminals are suitable for watching short TV live program such as track and field events like 110m hurdle race. The demand of customers and application types can be categorized according to the analysis of market segmentation. While using video communications, we think consumers should not be driving or walking. One should take a responsible attitude for his or her personal safety.

Q: In China’s 3G market, which standard will be the winner? Will CDMA2000 be marginalized in China?

A: China is a huge country. There are sufficient customer bases to support services over different 3G networks. We think that the success is determined by whether you have cost-effective and attractive application. With regard to the tariff issue, I think TD-SCDMA operators should work out their operation strategies based upon sufficient market analysis.

Q: How do you think the timing of issuing 3G licenses in China?

A: As for 3G licenses, the Chinese leaders have announced to the whole world that china will provide 3G communications services for the Olympic Games. I think this is a positive indication. From now on, I think it is still feasible to construct 3G communications networks. Even if Beijing and coastal regions are covered at the initial stage, it will also be a good start for the development of 3G communications in China.

Q: What are the immaturities of TD-SCDMA?

A: Your question is about the technological maturity of TD-SCDMA. We are convinced that through the testing and improvement one round after another TD-SCDMA will become mature quickly. In my view, the challenge the whole industry faces is that handset manufacturers have to develop more types of TD-SCDMA multimedia terminals in a relatively short period of time. You know timing is very important.

Q: If TD-SCDMA is commercially deployed, what will be your focus?

A: If TD-SCDMA is commercially deployed, we, as a participant in the TD-SCDMA undertaking, will focus upon developing various good application and services in collaboration with the vendors in the TD-SCDMA Forum. Just now, we talked of the Olympic Games. I’d like to say that it is our wish to make good application ready and provide better information services for TD-SCDMA subscribers before the Olympic Games comes.

Q: Do TD-SCDMA multimedia terminals have to be smartphones?

A: No matter TD-SCDMA or WCDMA, there are several types of terminals. There are low-end video-enabled ordinary handsets, which are cheap. There are also middle-end and high-end terminals, including smart phone, PDA and pocket PC. The middle-end and high-end WCDMA terminals have been released in the market, some of which adopted WinCE operating system and some of which adopted protocol stack software of our company to develop handsets in collaboration with experts from our company.

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