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Sharp Supply GSM Wireless Phones To China

25th April 2003

China : Sharp Corporation has signed an agreement with Datang Telecom, a major Chinese manufacturer of communications equipment, to supply camera-equipped GSM mobile phones to the Chinese market.

Inset is a typical Sharp mobile phone of the type likely to be made for China.

Sharp has been manufacturing and selling audio-visual products, home appliances, office equipment and electronic components in China, but this is the company’s first entry into the Chinese mobile phone market.

The phone will be a Chinese version of the GSM mobile phones that Sharp has developed for other Asian countries and Europe. It will be compatible with the value-added Monternet service provided by China Mobile Communications Corporation, the largest mobile phone service operator in China. Under the agreement, starting in April 2003 Sharp will provide 100,000 units to Datang, which will distribute them through its nationwide sales network. Sharp aims to strengthen its partnership with Datang, a company with strong links to the Chinese government, and fully expand its business in the Chinese market.

Note 1 : Datang Telecom Technology Co., Ltd., headquartered in Beijing, is a large telecommunication infrastructure systems group separated from the China Academy of Telecommunications Technology and formed in 1998. With 3,000 employees, it had net sales of 2.1 billion RMB (approximately 30 billion yen) in fiscal 2001. In addition to its main products of telephone switchboards and fiber-optic communications equipment, Datang aims to expand its share of the market for GSM mobile phones through cooperation with Sharp. Datang is also a key promoter of TD-SCDMA, a 3G mobile phone standard specific to China. Many speculate that this will likely lead to the coexistence of three systems—TD-SCDMA, W-CDMA, and cdma2000—in China.

Note 2 : Monternet, provided by China Mobile Communications Corporation, is a mobile phone data communications service that uses a GPRS network to allow users to send digital photographs and to download things like background screens and ring tones.

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