Motorola and Ericsson step up push for Chinese market

Motorola and Ericsson are looking to build up the Chinese market for 3G services.

Motorola has announced it is setting up a new application development centre to promote wireless data services among Chinese networks. The company said it plans to help local telecommunications operators link up with application developers to offer quality control, engineering and logistics support as well as sales and marketing help.

Mobile phone companies worldwide are moving to set up data-oriented 3G networks to boost capacity, improve coverage areas, and offer services such as 2.4Mbps wireless broadband. The data-oriented services are also expected to help make up for plunging revenue from voice calls.

Patrick Kung, corporate VP at Motorola's PCS North Asia unit, said in a statement: "Wireless data applications and contents are crucial elements that drive the adoption of 3G."

European and Asian operators have been offering data services for some time, while those from the US playing catch-up.

Separately, Ericsson has also announced it has signed a $58m contract with China Mobile's Jiangsu Mobile Communication that expands the two firms' partnership for GSM and GPRS technologies. Jiangsu has 12 million customers.

Ericsson will provide Jiangsu with high-speed data communications and multimedia services geared toward smoothing the transition to 3G. It will also provide engineering, network support, network optimisation, and technical and management training. The expansion project is expected to be completed by the end of the year.

Dinesh C Sharma writes for CNET News.com