Manufacturing News

Motorola and China’s Huawei to launch new project

New project is to develop and market wireless network equipment based on faster versions of the GSM mobile network standard.

Jul. 26, 2006, (China Knowledge) – Motorola Inc. announced today that it will collaborate with China’s Huawei Technologies, Co., Ltd. to develop and market wireless network equipment based on faster versions of the GSM mobile network standard. ?

Motorola and Shenzhen-based Huawei will launch an enhanced and extensive portfolio of universal mobile telecoms service (UMTS) and high speed packet access (HSPA).

The project includes a joint research and development center in Shanghai.

Under the agreement, Motorola is expected to market, distribute and install the company’s UMTS and HSPA equipment as well as provide services such as network performance, network security and operation support systems.

Huawei is expected to contribute its expertise in terms of technology innovation, research and development.

"This agreement enhances our technological innovation while also creating cost savings for our business,” said Greg Brown, Motorola’s president of networks and enterprise.

In a Reuters report, a Motorola spokesman said that Motorola is focusing on switching to the faster versions of GSM because the company believes its CDMA (Code Division Multiple Access) business has reached its limit and it is seeking beyond CDMA.

Earlier reports said that with its second-quarter operating profit increased by 11% year-on-year, Motorola expects its operating profit to rise by 12 % to 14% year-on-year in the third quarter this year.

On Jul. 19, Motorola said that its profit rose by 48% compared with the same period last year in the second quarter.

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