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Issue #2003 - 16 (May 2003)
(Updated May 15, 2003)


3G News This Week

1. WLAN Infrastructure To Establish Itself At 3G Expense - Metrinomics of UK

2. U.S. Launch of Walkie-Talkie for Wireless Phones

3. Hottest Trend in Wireless Phones Has a New Voice

4. First TD-SCDMA chipset to be ready for mass-production of phones by mid 2004 

RTX Telecom has signed an agreement concerning the development of a state-of-the-art GSM/TD-SCDMA chipset for the Chinese 3G TD-SCDMA standard with a tier-one supplier of cellular chip-sets. The TD-SCDMA part of the chipset will be based on RTX Intellectual Property (IP). 

The chipset will be available in engineering samples by the end of 2003 and for mass-production by the first half of 2004. It is expected that it will be the first chipset available for development of commercial TD-SCDMA handsets. 

The GSM/TD-SCDMA chipset will be based on the chip supplier's EDGE and W-CDMA chipsets, ensuring a high combined production volume and a competitive price for the chipset. RTX Telecom is convinced that handsets based on the chipset will be able to compete with all other 3G technologies on key competitive factors such as cost, size, weight and standby/talk-time.

RTX Telecom has been working on development of TD-SCDMA IP, firmware, software and handset designs since the year 2000 and sees a strong interest from handset manufacturers in developing commercial GSM/TD-SCDMA handsets for the Chinese market. The new chipset is expected to accelerate the development of handsets and keep RTX Telecom in the forefront of TD-SCDMA.

The chipset will be able to handle all services supported by the TD-SCDMA networks in China. Handsets based on the chipset will be able to fall back on GSM/GPRS in geographical areas without TD-SCDMA coverage.

Based on this Agreement, RTX Telecom will be able to accept contracts from customers immediately for the development of competitive handset designs to be approved and mass-produced by mid 2004.

CEO Joergen Elbaek, RTX Telecom, comments: "Securing competitive chipsets for development of commercial TD-SCDMA terminals has been the most important milestone to pass in our plans to become a leading design company in the TD-SCDMA market". 

"We hope this will help the Chinese authorities in their process of issuing TD-SCDMA licenses to operators. It is our belief that the chipset will be the first in the market based on proven technology, and we hope it will help secure a strong position for RTX Telecom in the future TD-SCDMA market." adds Mr Elbaek.

The Chinese authorities have not yet issued TD-SCDMA licenses to mobile operators, but RTX Telecom expects this to happen before long.

Source - Several but primarily http://www.3g.co.uk

MobileInfo Comments and Advisory: There are three noteworthy trends this week. The first item in this newsflash appears to confirm statistical extension of a trend that is holding ground in the market - increasing popularity of Wi-Fi WLANs over faltering 3G. Notwithstanding the trend that is justifiable on its rights, 3G might ultimately, after a few years, might bring these isolated hotspots together through its roaming capabilities and providing coverage where no body would spot a hotspot.

The second trend is, of course, the increasing popularity of Push2Talk feature in handsets. We have highlighted Nextel's lead in this market and others trying to catch it. However, it is important to realize that the network infrastructure must inherently support "fast direct connect" for this feature to be truly usable. TD-CDMA chip set story does not represent a trend but an early indicator that chinese-supported TD-CDMA might succeed as a competitive CDMA technology, much to the chagrin of Qualcomm. Success in China is more assured than in the rest of the world, however.

The third early 

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.

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