With the presence and testimony of both the Chinese and Canadian premier, Nortel, the world-famous telecommunication equipment manufacturer, signed a frame agreement with China Putian - a well-known communications enterprise in China. They intend to build a joint venture specialized in research and manufacturing TD-SCDMA systems as well as providing 3G solutions. We should say, this agreement signifies the further development of the existing strategic partner relationship between Nortel and Putian. Meanwhile, it symbolizes that another multinational telecommunication equipment manufacturer will get involved into the development of TD-SCDMA. Therefore, this agreement has remarkable significance to the TD-SCDMA industry both home and abroad.

Bill Owens has taken the post of Nortel president and CEO for nine months, during that time he has been to China twice. Due to the reason mentioned above, when he received the interview, the joint venture specialized in TD-SCDMA therefore has become the focal point. Bill said the era of 3G is already approaching and Nortel is very powerful in this field. The joint venture established by Nortel and Putian will emphasize the research of the technology. TD-SCDMA is an important part of 3G technology. It is also an important field in 3G development. Establishing the strategic partnership with China is an important measure for Nortel to further promote the commercialization and maturity of TD-SCDMA. Our aim is to further optimize TD-SCDMA.

When talking about the process of establishing the joint venture and its future prospect, Bill stated both sides are confident that all the formal documentation and agreements will be confirmed or signed before June 30. of 2005. Bill stated that the main task of this joint venture is TD-SCDMA research and they’ve already got a lot of ideas about it, such as how to make fully prepared for the research in the early stage, and how to occupy the leading position as long as the joint venture formally start up. Bill showed that they must spend some time on further strengthening their competence. Only by this way can they provide high quality products in the network construction. From the marketing point of view, he said Nortel wants to begin its first step in China with Putian, and meanwhile they can cooperate with each other to capture more market share in other countries or regions.
Nortel is one of the earliest telecommunication equipment manufactures that involved in the development of TD-SCDMA industrialization. As early as last year, Nortel participated TD-SCDMA field trial of MII with Datang and Putian. When talked about the development direction of this joint venture, Bill stated that this joint venture will firstly focus its attention on TD-SCDMA radio networks and try to make it mature. In the initial stage, Nortel will provide RNC technology while Putian will offer Node B technology . The aim of this joint venture is to bring the advantages and resources of both sides into full play to promote the development of technology and products and to improve the efficiency of research and manufacturing via technology convergence. Nortel believes that the technology of both sides will be convergent and this joint venture will be an integral structure.

Bill said that the establishment of this joint venture is a part of Nortel’s long-term strategy in China. It is not only closely related to TD-SCDMA, but also to the long-term existence and development of Nortel in China. He said the Chinese market as well as many talented R&D personnel in China is very attractive for Nortel; Nortel will resort to various methods to further develop its services in China. Bill said that technologies and services in UMTS Node B have been introduced in the joint venture. It is firmly believed that many aspects in technology and products will be converged in the future. He said that Nortel’s TD-SCDMA R&D will only be conducted in this joint venture and no departments other than the joint venture will specialize in it. The focus of this joint venture is TD-SCDMA. Bill firmly believes that Nortel and Putian will cooperate with each other very well and it is sure that they can achieve success after great efforts.