Nokia ties up with Chinese firm

The venture, pending government approval, will involve an investment of $111 million, the China Daily reported.

Putian, a major Chinese telecom equipment maker, will have a 51 per cent stake and Nokia, 49 per cent.

Based on the European-initiated WCDMA standard and the Chinese TD-SCDMA standard, the venture will engage in research and development, manufacturing and marketing of 3G equipment and solutions.

The joint venture is expected to launch commercial products based on the two standards next year, the paper quoted the president of Nokia (China) Investment Co. Ltd, David Ho as saying.

Unlike the other two major global 3G standards, WCDMA and CDMA-2000, the Chinese standard TD-SCDMA remains an unproven technology as it is not yet in commercial use. However, the new mobile technology standard has gained momentum in recent months, especially in China.