State Aims To Boost TD-SCDMA Adoption Via Datang-Potevio Merger

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The Chinese government has reportedly endorsed a plan to merge two of the country's smaller telecommunications equipment manufacturers as part of a broader scheme to rationalise the state's ownership of high-tech and IT assets. More importantly, the initiative will centralise the state's investments in the home-grown 3G standard, TD-SCDMA and possibly provide a springboard for the technology's adoption outside China. However, BMI believes that the inherent incompatibility of TD-SCDMA and more widely adopted 3G standards, such as W-CDMA, preclude that possibility.