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February 25, 2011

Managed Services: China, Taiwan Show Willingness to Cooperate in Telecom

By David Sims, TMCnet Contributing Editor

We have heard that China and Taiwan are deepening their relationship; however, it appears to be true for more than just politics. The two seem to be ideal business allies, and it appears relations are thawing in that direction.

According to the Wall Street Journal, China Telecom (News - Alert) “is considering cooperating with Taiwanese telecommunications operators to launch applications for mobile phones and may purchase Code Division Multiple Access-based smartphones from Taiwanese handset vendors.” 

China Telecom Chairman Wang Xiaochu was scheduled to visit Taipei earlier this week to visit Taiwanese mobile phone carriers and handset makers, the Journal said, citing anonymous sources, including HTC and Compal Communications. Aforesaid anonymous sources also said Wang “will discuss possible content service cooperation with all five Taiwanese telecom operators: Chunghwa Telecom, Far EasTone Telecommunications, Taiwan Mobile (News - Alert), Vibo Telecom and Asia Pacific Telecom.” 

Competition in China's mobile market is intensifying, the Journal wrote, “following the completion of the country's third-generation mobile network in late 2009,” and to boost its mobile business, “China Telecom, China's largest fixed-line operator by subscribers, has been striving to improve its value-added services and handset offerings.”

Last week, TMC’s (News - Alert) Anamika Singh wrote that the GSMA, representing the interests of the worldwide mobile communications industry, announced that China Telecom, KDDI (News - Alert) and Verizon Wireless gained membership to the GSMA following their commitment to deploy commercial services based on LTE, the next-generation wireless technology for Mobile Broadband.

 China Telecom, KDDI and Verizon Wireless are major CDMA operators and will begin the commercial deployments of LTE soon. LTE with operators’ existing Mobile Broadband services, will provide high-speed services to more than 150 million customers over the next three years.Qualcomm has also joined the GSMA (News - Alert) as an associate member, according to Singh.

David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Tammy Wolf

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