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TD-SCDMA Forum Interview Series (12)

Director of Beijing Samsung Telecommunication Research Center: Samsung Benefits from its Decision on TD-SCDMA



Introduction:

Wang Tong
Position: Director, Beijing Samsung Telecommunication Research Center
Nationality: China
Date of Birth: June 24, 1962
Education Degree: 1984, Bachelor of Science in Telecommunications Engineering from Beijing University of Posts and Telecommunications
Experience:
1984-1991 Served in Beijing Design Institute of the MII
1991-1994 Deputy Director of Switching Division in Beijing Design Institute of the MII
1994-1997 Director of Switching Division in Beijing Design Institute of the MII
1997-2000 Vice President of Beijing Design Institute of the MII
2000 till now Beijing Samsung Telecommunication Research Center

Samsung¡¯s Road to TD-SCDMA: Began from ¡°Playing it Hard¡±

Wang Jing: Thank you Mr. Wang for accepting this dialogue in the TD-SCDMA executive interview series carried out by TD-SCDMA Forum and Sina.com, and this is the 12th interview. These interviews are very popular on the Tech Channel of Sina.com, and the page view is often very high. Recently, especially after the trial commercial use, people began paying attention on this issue, and the contribution that foreign enterprises have made in the field of TD-SCDMA is especially highlighted. Recently, the TD-SCDMA Forum visited with China Mobile. They are interested in this issue as well, especially in terms of terminals. For example, how to engage big multinational companies in the business to push TD-SCDMA terminals with more effort, and to involve other leading vendors in the business.
As we know, Samsung is a company entered TD-SCDMA business from early on. Can you please introduce the development path of TD-SCDMA in Samsung?
Wang Tong: Beijing Samsung Telecommunication Research Center was founded in 2000, but as a matter of fact, the headquarters of Samsung has been engaging in the research of TDD before our establishment. We have a division of work with the headquarters that their key work is on FDD and ours is on TDD. When TD-SCDMA Forum established, we were very eager and participated in the first time.
Wang Jing: It was in 2000.
Wang Tong: I had just entered Samsung at that time. The executives at Datang such as Mr. ZHOU Huan, Mr. YANG Yigang and Mr. YANG Hua all wished Samsung mobile phone could join the industry chain of TD-SCDMA. In their opinion, there are plenty of companies researching into system, and there will not be problem if they take Datang as the center. The problem was there was no investment from those big names in the market of terminals. Later we pushed the process actively, and finally our headquarters decided to invest in TD-SCDMA chips, when Philips, Datang Mobile and Samsung set up T3G jointly. The shareholders are from the three fields of terminal, chip, and protocol stack. In the meantime of investing in T3G, TD-SCDMA mobile phone team was set up in the Samsung Research Center.
Wang Jing: It is said your research into TD-SCDMA began in 2001, and TD-SCDMA terminal team was established in 2002.
Wang Tong: Yes, we decided to ¡°play it hard¡± from the beginning. At that time, Commit was established before T3G, we had to take it seriously and do it seriously. So since then, the TD-SCDMA team at Samsung was working at T3G and all the people were there. The work on chips had only begun at that time, so we brainstormed on the topics such as reference design and protocol stacks. It was a great cooperation. And later no matter chips or terminals, we made a lot of ¡°number one¡±¡®s. This is the basis for our success in TD-SCDMA.
Later T3G gave us a lot of testing work to us, including some chip versions in their infancy. Samsung Research Center helped T3G a lot in later testing works. The close cooperation laid a foundation of the consistent leading position in the development of mobile phones for Samsung.
Wang Jing: I have two feelings after your talk. 1. As the representative of Samsung, I believed you had made a lot of effort to persuade the headquarters, especially in 2000, 2001 and 2002. It was the earliest stage of TD-SCDMA, and the future of TD-SCDMA in China remained unpredictable. You must have the deep understanding of the way China¡¯s market operates and the strong influence from government. Or you wouldn¡¯t be able to convince the headquarters, and the decision-makers at Samsung were really wise. 2. You said to ¡°do it seriously¡±; I don¡¯t think that was easy to say at that time. I took charge of the Forum on 20005, which is several years later from your ¡°do it seriously¡±. And many companies I visited were just talking about it instead of really doing anything. While you began investing in T3G from the very beginning. We can see the development path of T3G is very clear, plus their cooperation with leading manufacturers like you, they can lead the development of chips industry. By contrast, Commit wasn¡¯t clear about it, which finally leads them to a tragic ending.
Wang Tong: When Samsung began operating in China, it was made clear that we¡¯d want to make another Samsung ¨C a new Samsung of China. Samsung paid significant attention to the industrial policy and technical development trend in China, it wasn¡¯t just my persuasion. Generally speaking, Samsung wishes to break a new ground in China and expand its market. So it is very important to follow the guidance, promotion of Chinese government in terms of technology.
Wang Jing: That is crucial.
Wang Tong: At my position, I could understand the situation better. In other words, this is the only way we could do it. As one of the seven overseas research centers of Samsung, we have to interact and integrate with the local trend of technology and market demand. Now, we really benefit from this decision. TD-SCDMA has began trial commercial use, no longer a ¡°would-be¡±.
Wang Jing: You kept your promise to the headquarters (laughing).
Wang Tong: We have commercial outcome, and it seems the gain is on the expansion. Also, the prospect of TD-SCDMA and its future market share will be promising.

¡°Veto¡± Keeps the Samsung Images, Advantage Kept in 3G Age

Wang Jing: Let¡¯s talk about recent TD-SCDMA bids. The first was in the beginning of this year. In the total bid of 60 thousand machines, Samsung got 4500, taking up 7.5%. The 2nd phase of bid was 200 thousand machines and 15000 data cards. Two models of Samsung phones won the bid, totally 20 thousand machines; the market share was 10%. How many models won in the first bid?
Wang Tong: One, SGH-L288.
Wang Jing: And in the second bid, it was two.
Wang Tong: Yes, SGH-L288 and SGH-i688.
Wang Jing: Can you give us a comparative introduction on your market share? And, please introduce to us how the functionality of terminal has evolved in the 1st and 2nd bid?
Wang Tong: Yes, as to the two bids, we have special responsible departments in China. I think you know the number, in the 1st bid, we provided approximately 5000 machines, and in the 2nd bid, it was 20 thousand. During this period, we, together with China Mobile, donated 15 thousand mobiles phones to the BOCOG.
Wang Jing: And those 15000 are not included in the bid?
Wang Tong: Our donation of 15 thousand machines is for the service of the Olympic family and is not included in the bid.
About the first bid, my impression was, we really didn¡¯t think too much about it. It wasn¡¯t about the market share in the very beginning. Because we know for TD-SCDMA technology at the current stage, no matter from the acceptance degree of system, affordability of terminals, to the collaboration of system and terminal, and to the network coverage, there is a long way to go before it gets widely accepted. And there is still distance with mature applications such as WCDMA. There must be a process of improvement and growth.
Wang Jing: That means you paid attention on the overall service quality, instead of quantity of users in the 1st bid?
Wang Tong: Yes. Because we have so many GSM user base and such a perfect and stable coverage, and CDMA is also mature enough to support a large number of users, and TD-SCDMA, in any sense, still remains a trial commercial use technology and we really want to offer the commercial service to more users or consumers.
Terminals are used in the network and services are realized through a terminal. So the industry chain can only be complete if the network and service provider work together closely. Terminal device and do the thing on its own. So we are trying to make it better and more stable to satisfy the operators and consumers.
Wang Jing: This is what you thought during the 1st bid.
Wang Tong: Yes. But actually, we also kept development and testing after the 1st bid. We can clearly feel the improvement of network, system, technology and terminal devices. In several short months, we can fee the network condition more stable and much better. That¡¯s why we expanded supply in the 2nd bid.
Wang Jing: Does this give you any pressure on delivery?
Wang Tong: There is no problem about the quantity, yet the problem is about time.
Wang Jing: There needs to be a lead before delivery, and it is always a problem for terminal providers.
Wang Tong: It is very important to have a projection on market demand for all the terminal providers, especially big companies. But as a matter of fact, our planning is not flexible, because it is made up according to operator demand instead of market research. So each time, it is inflexible and unplanned.
Wang Jing: The operator didn¡¯t gave enough the time lead before each bid.
Wang Tong: I believe this is true for all companies. For the mature GSM terminals, the normal cycle from expressing the demand to delivery of product, to release of a new model takes 3 to 4 months.
Wang Jing: How about TD-SCDMA?
Wang Tong: Now actually, the cycle for TD-SCDMA is also like this. Around 3 to 4 months. And now, such a time lead is simply unavailable. Can we shorten it? Can we make it quicker? Absolutely we can. But that will fail our internal testing. Our internal testing is very comprehensive. If a product fails to pass, it means a veto. How do we pass the internal testing? Overworking is not the answer.
Wang Jing: That is why Samsung became Samsung. Quality is the number one principle. No matter your thought in the 1st bid or in the whole testing period, this has always been ensured. Indeed, after the trial commercial use of TD-SCDMA began on April 1, we've noticed that the consumer feedback indicated Samsung mobile phones are better than other brands. This might also be what you expected from the market.
Wang Tong: We think the comprehensive stability is the most important in terms of function. Second, video telephony should be done well as it is a good example of 3G. Because these purchases used in business during the Olympic Games basically serve the Olympic Games or, the volunteers, videos are very important. Also, we think the quality of videos is particularly important because TD-SCDMA is the international standard for 3G.
In addition, we were hesitant about which direction we should apply, dual-network dual-standby or automatic switching? Now Samsung produces 2G/3G automatic switching, which is the automatic switching with one number between two networks. Although we think we make dual-mode dual-standby cell phones of high quality, there are no signals for telephone numbers with TD-SCDMA mode in many places in China. The signal of 3G did not cover the whole country when firstly introduced. Besides, there are currently ten cities for TD-SCDMA signals and even only the land inside 5th Ring Road in Beijing is fully covered by the signals.
Wang Jing: So you think this is one basic feature of 3G network at its early time.
Wang Tong: That¡¯s why we didn¡¯t do dual-mode dual-standby at the beginning.
Wang Jing: Will you do it later? This is a model of TD-SCDMA cell phone from ZTE available on the market that supports dual-mode dual-standby.
Wang Tong: This depends on the demand in market, we will definitely do it if required.
Wang Jing: ¡°Portable GSM number¡± is being called for in the Forum as well as by the MIIT (Ministry of Industry and Information Technology). It can¡¯t attract the customers if they need to change another TD-SCDMA number for the TD-SCDMA cell phone. If GSM number can be included in TD-SCDMA network, it is not that urgent for dual-mode dual-standby. But automatic switching is essential for its basic function.
Wang Tong: In fact we have successfully developed dual-mode dual-standby. With a small volume, it is ready to be used for business at any time after our further judgment in the market.
Wang Jing: It is just about the time. How about HSDPA?
Wang Tong: We have developed HSDPA card.
Wang Jing: Then is Samsung one of the 15,000 cards in the first public bidding?
Wang Tong: We have developed HSDPA cards with downstream speeds of 2.8M. Currently we have the highest level of downstream speeds. And this HSDPA card didn¡¯t participate in the bidding of China Mobile.
Wang Jing: Personally, card application is an important section in the early use of TD-SCDMA in business.
Wang Tong: Considering network capacity, coverage and use from customers, we think dual-mode EDGE/TD-HSDPA card will play an important role in future.
Wang Jing: Due to the fact that the card is easy to be made, functionally reliable and with simple mode in terms of the whole industry and its application, it will definitely outstand later in the market.
Wang Tong: Besides, our push-to-talk is the biggest feature in terms of function, which is developed independently by our company only. Samsung is the only company providing commercial products in terms of TD-SCDMA terminal. All 15,000 sets we provided the Olympic Games have PTT function, which was required by the BOCOG.

Wang Jing: Are the 15,000 sets mainly used for volunteers?
Wang Tong: It is for the whole Olympic family, not volunteers.
Wang Jing: So who will be the users?
Wang Tong: The officials of the IOC, or the guests they invited, or people involved in BOCOG, like judges, referees and athletes, etc.
Wang Jing: To make it become a means of communication during the Olympic Games.
Wang Tong: We can even use this function in some cars to make the group bigger. Some are responsible for transportation, some for security and some for the opening and closing ceremonies, bringing great convenience to the Olympic Games. This is a particular requirement they asked from us, so all these 15,000 have this function.
Wang Jing: PTT is a characteristic of Samsung. Samsung is a stockholder of T3G, it is the cell phone company that pushes T3G¡¯s development. And Motorola also invested in T3G. Are the chips used in your TD-SCDMA cell phones from T3G?
Wang Tong: Yes, they are.
Wang Jing: Is there going to be any changes in future?
Wang Tong: Generally it depends on the market choice. We need both cooperative partners to cover the market and the room to make choices.
Wang Jing: There are many analogies for T3G. Such as Datang, it had stock share in Commit, T3G and ADI at early time. Although it is normal phenomenon for TD-SCDMA at that time, but conflict of profit will occur among its branches when developing in larger scale later.
Wang Tong: Right, so changes will be made at the right time. Although they are close business partners, the profits of each party don¡¯t go together. So changes will surely be made.
Wang Jing: Will there be certain changes in future?
Wang Tong: During the development of TD-SCDMA, it is possible for all the companies to be successful in the market. Some chip companies are more tightly connected with cell phones and televisions, some have advantages in MBMS, some target the lower market by cheaper price or, some perform well in TD-HSDPA. It is quite possible to form a situation in which everyone competes by their own advantages and surely the market choice is the most important.
Wang Jing: Samsung has also made achievements in fields of 2G and WCDMA. Who are your major partners on those fields?
Wang Tong: We have very extensive cooperation with many partners. We are in partnership with all OS, chip vendors, for example, Phillips, Qualcomm are all our partners.
Wang Jing: You really have wide cooperation.
Wang Tong: Yes, our cooperation is wide and inclusive. Second, our cooperation is generally deep.
Wang Jing: So, the TD-SCDMA product of Samsung can adopt the similar model as GSM and WCDMA and take the best.
Wang Tong: Right, we will have close cooperation for TD-SCDMA too, and we would also have partners will different advantages and their solutions.

Development of TD-SCDMA Depends on the Development of Data Service

Wang Jing: What do you imagine the application situation of TD-SCDMA will be as a 3G technology? In such a market as China, what application can attract consumers? Because I feel that the application of 3G is not yet very successful, especially in the European market. And not 3G is not like 2G. In 2G era, voice and text message can support a huge system. In China SMS service are numerous on 2G platform. 3G is a niche market where there are specified users. For example, the target users of video telephony won¡¯t be us, those who are in their 40¡¯s and 50¡¯s. I don¡¯t really want to look at the other when talking on the phone, and they might not want to see me as well. But young people would like it. And there are also worries that young people could not support such a market of big scale. However, given the multi-million level huge user base in China, a small percentage might be able to support an industry as well. This gives particularity to the 3G market in China. Maybe a benign cycle really could be established on the 3G market in China. In China you also do the mobile TV business, won¡¯t it be a good application in the age of 3G? How big is the potential of video telephony? Are there other applications that make 3G appealing?
Wang Tong: In my opinion, the reason why the development of 3G is so slow has something to do with that there has not been a particular service package identifying this generation of technology. The key difference between 3G and 2G is that 2G stresses on voice service whereas 3G is on data service. As to the establishment of a particular service package, there has to be a supporting infrastructure - abundant bandwidth, and a number of data service applications. Users should as well gradually accept and get familiar with such applications. 3G and the following 3.5G could only show its real effect when the users begin to accept and get accustomed with various data applications.
In the trial commercial uses of TD-SCDMA, there are many opinions and quite a few comments are negative. But the consensus is that, with 384k data car, Internet connection is really much quicker. This is the advantage of 3G. I think this has laid solid ground for the development of various data services. I believe various data applications that are suitable to Chinese users would emerge on the TD-SCDMA network.

TD-SCDMA has a good future

Wang Jing: And the last question is about Samsung. How do you expect the future of TD-SCDMA? Especially in terms of TD-LTE, what is Samsung¡¯s plan, if the TD-SCDMA evolution would move on?
Wang Tong: The future of TD-SCDMA is definitely very broad. Now we could notice the significant improvement in 10 cities and these short months. The technology is showcased on the Olympic Games, and many people are already using it. With the previous trial commercial use, the orders and user experience both soared. With the expansion of user base, there are much less negative comments than in the early April. With the promotion of Chinese market and active effort of operators, I believe the positive prospective is beyond any doubt. Now, no matter in terms of technology or establishment of industry and services, there wasn¡¯t any problem. We never doubted the future of TD-SCDMA, and are much more confident now.
Wang Jing: China Mobile pays much attention on terminal and is eager to see more terminals joining. And how about TD-LTE?
Wang Tong: We will follow China Mobile. As to terminal devices, we will continue playing crucial role on TD-SCDMA. We have engaged in the research into LTE in the headquarters in South Korea and research center here in China.
Wang Jing: But the schedule must be tight.
Wang Tong: Schedule is tight, yet the establishment of a standard should be done step by step. It was a long process from proposition of TD-SCDMA as a standard to discussion, to being finally accepted by ITU, to the following development, testing and road testing and operator testing. Additionally, for LTE, I don¡¯t think anyone is sure when the standard could be stabilized, or would the whole industry chain be able to follow up. It can only be pushed step by step.
Wang Jing: It need much time.
Wang Tong: From 3G to LTE, a process of stabilization and maturity is needed. That is to say, you can only make the next move after a service package is mature in a large scale and on a large user base. Meanwhile, there are still much possibility after the adoption of HSDPA and HSUPA. We can't forget the history, we can¡¯t move from narrow bandwidth to broadband over night. Now our applications are lack of good platform and channel, and thus not able to be demonstrated. But when the bandwidth reaches 2.8M, is it enough? We need to walk step by step. As a matter of fact, TD-SCDMA is not yet shown to the public. The amount is so little that it is incomparable with multi-million users and that many devices. This number even can¡¯t reach the number of PHS terminal devices.
Wang Jing: This phenomenon is only temporary. I think the overall performance of TD-SCDMA is much better than the previous phase, because the market prospect is clear and bright. This used to be a big problem limiting the development of the whole industry chain. A while ago, such problem was so huge that a company as Commit died and no one was able to help. And the situation is much better now. But problems remain. We don¡¯t have grand strategy and feasible plans. Everyone knows to support TD-SCDMA, and no one would deny TD-SCDMA. But what is the overall strategy? What is the plan in 1 or 2 years, or 3 or 5 years? As to the network, what would the future scale be? Like the national 5-Year Plans, TD-SCDMA also needs a target. Take the Olympic Games as an example. There are many detail plans after you decide to do it. And with those plans you can prepare for it in an orderly and organized way in the 7 years.
Wang Tong: We call that the target network, which means how the basic would network structure be like at a certain historic phase.
Wang Jing: Such plans should be there from the beginning. And there should be a plan and corresponding measures to support such plan. I believe this could be in place in the near future. Now, the relevant organizations are making industrial policy and is about to give out a plan. This is beneficial to international terminal companies as you. Because the plan is clearly there, and you can arrange you product line and make detailed plans. So, we would have an industrial policy roundtable in Dalian in late August to provide policy-making suggestions.
Wang Tong: Yes, the future is bright. The only question is how quick we go.
Wang Jing: Well, that is all for today. The interview with Mr. Wang is very helpful and informative to us, as well as to the readers. We really appreciate the long-time support from Samsung Telecommunications Research Center and Mr. Wang Tong. And we are looking forward to further cooperation at the TD-SCDMA Forum.
Wang Tong: Thanks to the Forum and Mr. Wang Jing. I appreciate the effort TD-SCDMA Forum has made to provide a platform of communication. We are looking forward to future close ties and chances for communication with the Forum.