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Datang Vice President Chen Shanzhi: TD-LTE-A Will Be Bound to Be Selected as 4G International Standard 2011-03-28

Chen Shanzhi, Vice President and Chief Engineer of Datang Telecom Technology & Industry Group, recently revealed that TD users will reach 60 million with an increase of 40 million users this year. When the number of TD users reaches 100 million, the market will enter into sound operation stage. He also revealed that TD-LTE-Advanced (hereinafter referred to as "TD-LTE-A") 4G (fourth-generation communications technology) proposed by Datang will be bound to be selected as 4G international standard.


Chen Shanzhi said till the end of last year, TD's users had reached 20 million. Thanks to the promotion of China Mobile, the number will increase to 60 million with an increase of 40 million this year. Currently the operator has huge initial investment, which makes it hard to achieve profitability. But when the number of TD users reaches 100 million, the market will enter into sound operation with an annual growth of at least 60%, which will drive the industry development. At present, over 90% of the TD equipments are manufactured in China, completely reversing the situation that the first generation mobile communications products relied entirely on import, that 80% of the second-generation mobile communications market was dominated by foreign enterprises.


It is the time to explore international market when the number of users reaches a certain size. Chen Shanzhi said the number of domestic TD users (20 million) shows the technique is mature and has a wide application. Therefore during the "Twelfth Five Year Plan" period, Datang will explore such emerging markets as Africa and southeast Asia. It is estimated that international market income will account for 10% of total revenue at the end of "Twelfth Five Year Plan".


With the development of technology, 4G research and development gradually comes into application stage. Datang Telecom Group is the creator and core IPR and key patent holder of "TD-LTE-A". In October 2010, "TD-LTE-A" was selected as 4G international standard. On the recently concluded Mobile World Congress2011, TD-LTE won the support of several international telecom giants, and the ITU has basically identified LTE as one of the two candidates of 4G international standard. Chen Shanzhi reveals that "TD-LTE-A" proposed by Datang has been passed in ITU internal review meeting at the end of last year, thus it will be bound to be selected as 4G international standard. As its leading role of TD-LTE technology, China may occupy a favorable position in the next generation mobile communication technology. Datang will continue to advance 'TD-LTE-A' to 4G international standard, to achieve from catching-up position in 3G standard to leading position in 4G standard. Thus China's telecommunication industry will shrug off reliance on foreign manufacturers, reversing international telecommunication competition previously monopolized by foreign manufacturers.


Chen Shanzhi said with the expansion of the market, Datang will promote the core business with capital market, corporate bonds and other fund-raising sources. Currently, Datang Telecom Group owns three listed companies, namely, Semiconductor Manufacturing International Corporation, Datang Telecom Technology Co., Ltd. and Gohigh Data Networks Technology Co., Ltd. Chen Shanzhi also stressed that Further Policies to Encourage the Development of Software Industry and Integrated Circuit Industries (New Article 18) issued by the State Council will give a burst to Datang. Datang, with such core technique as the chip, a relatively complete industry chain and high producing added value, will enjoy rapid development in the future.

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