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China's TCL targeting 20 mln mobile handset sales in 2004 - report
, 10.11.04, 11:10 AM ET

AFX News Limited

BEIJING (AFX) - TCL Communication Technology Holdings (HK 2618) hopes to more than double its 2004 handset sales to 20 mln units through its new joint venture with French telecommunications giant Alcatel, the Beijing Business Times reported.

"With Alcatel's sound and strong sales network as well as advanced technologies, the new joint venture will reach further into the overseas markets," Wan Mingjian, chief executive of TCL & Alcatel Mobile Phones Limited (TAMP), was quoted saying at the launch of the new joint venture over the weekend.

TAMP, which has an initial net asset value of around 100 mln euros, will be based in Hong Kong.

TCL has a controlling 55 pct stake in the joint venture, while Alcatel owns the remaining 45 pct, which includes its mobile phone assets.

The joint venture company will own Alcatel's patented 3G technologies, its research centers and 600 employees in both France and China.

TCL is hoping to speed up the development of its 3G technology through its joint venture with Alcatel before the government issues licences to operators next year, state media reported earlier.

Field trials of the competing 3G standards -- TD-SCDMA, co-developed by Datang Mobile and Germany's Siemens AG, WCDMA backed by European telecom equipment firms, and CDMA2000 backed by US technology group Qualcomm Inc -- were expected to be completed in September and the results of the trials to be released in early November, the Beijing-based Business Watch Magazine reported last month, citing sources from the Ministry of Information Industry.

TCL sold 9.82 mln handsets in 2003 making it the second largest Chinese manufacturer after Ningbo Bird Co Ltd (SHA 600130), which sold 11.76 mln last year.

(1 usd = 8.3 yuan)

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