Nokia Plans Phones Based on China's 3G

Nokia Corp. is getting ready to ship mobile phones based on China's homegrown 3G (third-generation) mobile standard.

The company plans to ship handsets based on TD-SCDMA (time division synchronous code division multiple access) early next year, said Thomas Jönsson, a spokesman for Nokia China. "We want to be there when the market is ready, and we think it will be ready during the first half of 2008," he said.

Jönsson declined to discuss Nokia's TD-SCDMA handset plans in detail, including the number of handset models the company plans to make available.

China does not currently permit operators to offer 3G services. Equipment and handset makers have been waiting for Chinese regulators to issue 3G licenses, but officials have held off, giving TD-SCDMA's backers time to further develop the technology.

With increasing signs that TD-SCDMA is ready for commercial services -- and a public commitment to make 3G services available during the 2008 Olympics in Beijing -- China appears close to issuing the long-awaited licenses.

Since only China has announced plans to use TD-SCDMA for 3G services, Nokia handsets based on the technology are unlikely to be sold outside the country.

China is one of Nokia's most important markets. Out of 347 million handsets sold by Nokia in 2006, 51 million [M] of those went to customers in Greater China, a region that includes China, Hong Kong and Taiwan, Jönsson said.

Counting revenue from both handsets and mobile infrastructure equipment, Greater China accounted for 13 percent of Nokia's total revenue, he said.