South Korean electronic giant Samsung has got approval from the Chinese Government to set up a CDMA (code division multiple access) telecom system joint venture (JV) with Shanghai Bell.
The official launching is scheduled for this week, according to sources from Shanghai Bell, the biggest producer of electronic wireline and wireless switching systems in China.
The joint venture company will be named the Shanghai Bell Samsung Mobile Communications Co with Shanghai Bell and Samsung Electronics controlling a 51 and 49 percent share respectively.
The first-phase investment for the JV has been set at US$12 million and the total investment will reach US$29 million. It is meant for development, production and marketing for CDMA systems, Samsung said.
Samsung, one of the leading CDMA equipment manufacturers in the world, said the joint venture could have a major influence on China's CDMA market.
This joint venture will serve as a vital base of operations in the Chinese communications industry. "It will enable us to respond immediately to the needs of local operators," said a spokesman for Samsung.
By establishing a local joint venture, Samsung will also enhance its efficiency in importing to and exporting from China, according to the spokesman.
With the launching of China Unicom's CDMA network early next year, which will be the first in the country, worldwide CDMA equipment vendors have locked on China as the priority market.
Samsung, which has been isolated from the Chinese market because of different technology standards, is finally being rewarded for its long wait.
GSM (global system for mobile communications), a counterpart technology with CDMA, has been adopted by the country's mobile carriers. Although a major CDMA equipment vendor, Samsung could only wait outside the Chinese market in past years.
(China Daily December 10, 2001)
