Ericsson Mulls Opening LTE Test Center in Taiwan

Taipei, May 7, 2009 (CENS)--Telefon AB LM Ericsson plans to set up a laboratory in Taiwan to test mobile gears built on the Long Term Evolution (LTE) technology, which is rivaling WiMAX to lead the world's fourth-generation mobile format, according to the Swedish company's president for the Greater China operation, Mats H. Olsson.

Olsson pointed out that WiMAX is a good mobile technology destined to snatch up a slice of the market and Taiwan's telecommunications-equipment suppliers have mostly chosen to develop their products on the technology. However, he asserted that from a long-term perspective, the world mobile format would eventually evolve from the 3.5G HSPA (Highs Speed Packet Access) and the 3.75G HSPA+ into LTE, not WiMAX.

He cited mainland China an example to support his forecast, saying that WiMAX has never had a chance to penetrate in the Chinese mainland market. He suggested Taiwan's equipment manufacturers quickly move to deploy in HSPA and LTE technologies.

Olsson noted that China Mobile, China's No.1 cellular-service provider; NTT and DoCoMo have vowed to support LTE specification. The world's first commercial LTE network is expected to be launched by U.S. service provider Verizon sometime next year, he added.

Olsson noted that Taiwan's equipment suppliers working on WiMAX and 3G gears including the chips and handsets are capable of switching to the LTE field.

The Chinese mainland is now the world's No.1 market for cellular service, witnessing the number of net additional subscribers increase at monthly rate of 10 million individuals to a cumulative 660 million subscribers until the first quarter this year. Studies estimate the mainland's cellular-service market to grow to 960 million subscribers in 2012 and over one billion in 2013, at which time a quarter of the subscribers are estimated to shift to 3G service.

Ericsson is operating a laboratory in Taiwan testing 2.7G gears built on EDGE (Enhanced Data Rates for GSM Evolution) technology or HSPA technology. Olsson said any assumption that Ericsson would open an LTE test laboratory in Taiwan to test the chips and the mobile phones is sensible.

In the mainland, Ericsson has helped China Unicom set up WCDMA 3G network in 15 provinces and cities combined, and will provide trial LTE network at the Expo 2010 in Shanghai.

Olsson commented that China Mobile's investment in Far EasTone Telecom would offer a superb chance for Taiwan's service providers and equipment makers to shoot for market shares in the mainland.