MediaTek Acquires Hesine to Reinforce Wireless Software Capability

Sep 15, 2010 Ι Industry In-Focus Ι Electronics and Computers Ι By Ken Liu, CENS
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Taipei, Sept. 15, 2010 (CENS)--MediaTek Inc. recently announced its US$1.9 million acquisition of Hesine Technologies Inc. of Beijing as part of its efforts to build up handset-software capability.

Industry executives believe the acquisition is part of MediaTek's plan to tap mainland China's triple-play telecom service market, which is on the rise under government support. The mainland's triple-play telecom service is estimated to draw a combined RMB688 billion (US$101 billion at US$1:RMB6.8) from investors and consumers over the next three years, the mainland's authorities said.

According to the mainland's triple-play telecom plan, pilot run of the service will begin this year and end in 2012. High-profile promotion will start 2012 through 2015.

In telecommunications, triple play service basically is a marketing term for the provisioning of three bandwidth-intensive services on a single broadband connection.

Hesine is good at wireless data applications for 2.5G, 3G, and 4G mobile connection technologies. Its core technology enables seamless connections of the Internet to mobile phones and other consumer-premise wireless gadgets. The company now has net value of around RMB9.9 million (US$1.4 million).

The acquisition is MediaTek's another in wireless software business after buying Vogins Technology Co., Ltd. of Shanghai.

In August, MediaTek began working with a triple-play solution developer co-founded by consumer-electronics manufacturers Changhong Electric Co., Ltd. and TCL Corp. of the mainland to venture into the rising sector.