Status of TD-SCDMA handset chipset in China

DUBLIN, IRELAND: Research and Markets has announced the addition of TD-SCDMA Handset Chipset in China: The Contradiction Between Functionality and Stability to their offering.

Currently, TD-SCDMA network construction in ten test cities is nearing completion, and Chinese carriers are testing TD-SCDMA handsets for purchasing. Tests have shown that current TD-SCDMA chipset platforms still have some problems with system stability, power consumption, and supported data rates.

We believe that because the future of TD-SCDMA technology has been uncertain, TD-SCDMA chipset vendors have emphasized functionality rather than stability when developing chipsets. The immaturity of current TD-SCDMA handsets may delay the timetable for China Mobile's handset purchasing and the pre-commercial launch of TD-SCDMA networks.

TD-SCDMA/GSM dual-mode, HSDPA, and TD-MBMS are the basic functional requirements for TD-SCDMA handset chipsets. We believe that by 1H08, TD-SCDMA handset chipsets will fully support these functions.

We believe that China Mobile will purchase less than one million TD-SCDMA handsets in 2007, but will purchase over five million in 2008. By 2011, shipments of TD-SCDMA handsets will reach 24.7 million.