China 3G standard phone sales to surge -research

* Strategy Analytics (SA) sees 7-fold growth in 2010

* Only major TD-SCDMA operator China Mobile

* SA says Nokia, Samsung, ZTE, Huawei, Mediatek to gain

By Tarmo Virki, European technology correspondent

HELSINKI, April 12 (BestGrowthStock) – Sales of cellphones using
China’s own 3G standard (TD-SCDMA) will grow 7-fold this year,
boosted by China Mobile’s (0941.HK: ) push of new phones and
services, research firm Strategy Analytics said on Monday.

The research firm did not unveil total sales estimates, but
China Mobile, the world’s largest mobile operator by
subscribers, has said it had 3.4 million clients using its
TD-SCDMA network last year when it opened the service.

The technology’s teething problems, along with a lack of
product offerings, have been major factors inhibiting the
development of a national TD-SCDMA network by China Mobile.

Seven-fold growth from 3.4 million would result in total
TD-SCDMA phone sales comparable with sales of Apple (AAPL.O: )
iPhones in 2009, and well ahead of Microsoft (MSFT.O: ) Windows
phones sold by all manufacturers in total last year.

Despite China’s efforts to promote a homegrown 3G wireless
standard to the rest of the world, the new technology is late to
the party.

In Europe and North America, many operators committed to 3G
network technologies 10 years ago and will not be keen to
replace their networks, which have cost hundreds of millions of
dollars.

China Mobile’s marketing push is set to make TD-SCDMA one of
the fastest growing mobile technologies in the world, and make
China an important 3G market, the research firm said.

China Mobile said last month it would spend 45 billion yuan
($6.6 billion) to extend its 3G coverage and roll out more than
80 TD-SCDMA handset models to address market concerns about its
lukewarm 3G push.[ID:nTOE62E08T]

Strategy Analytics said Nokia (NOK1V.HE: ), Samsung
Electronics (005930.KS: ), ZTE (0763.HK: )(000063.SZ: ), Huawei
[HWT.UL], MediaTek (2454.TW: ), ST-Ericsson (STM.PA: )(ERICb.ST: ) and
Spreadtrum (SPRD.O: ) were to benefit from the growth of TD-SCDMA.

Nokia has a lone product working on TD-SCDMA, but the
company is working to expand the offering, a senior Nokia
official told Reuters last week.[ID:nTOE63807E]

Stock Analysis

($1=6.824 Yuan)
(Editing by Mike Nesbit)

China 3G standard phone sales to surge -research