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Datang Mobile has inked a deal with BenQ to produce 3G handsets based on China's homegrown standard for third generation mobile communication (3G).

According to the deal, Datang Mobile would provide the TD-SCDMA technology while BenQ would be responsible to build up a handset production line, Monday's the Shanghai Securities News reported.

A set of 3G handsets ranging from low-end to high-end products will be produced, according to the paper. The handsets will be mainly sold within China.

The TD-SCDMA project of Datang Mobile was launched in 2003. With a special government fund for the project, Datang Mobile developed the TD-SCDMA standard as well as the base stations and dual-mode handsets based on TD-SCDMA/GSM.

Chinese Ministry of Information Industry have recently announced that the key technologies and products of TD-SCDMA met requirements for 3G services.

The opening of China's 3G market has been repeatedly delayed due to the immaturity of TD-SCDMA as the government wants its own standard to be used in the third generation mobile communication.

Analysts believe the government is likely to issue 3G licenses in the first quarter of 2007 and the homegrown standard is most likely to get the first license.

(Xinhua News Agency December 26, 2006)