Datang extends reach to upgrade export structure

Datang Telecom Technology and Industry Group, a Chinese telecommunications equipment company, will further implement its "going global" strategy in an effort to upgrade China's export structure, a top executive of the company told China Daily.

"In the past, Chinese enterprises went abroad mainly to build roads and bridges. Now we want to export more self-owned high technologies," said Yuan Yong, vice-president of Datang Telecom International Technology Co Ltd.

"As a central State-owned enterprise we are supposed to contribute to the national strategy of the 'going global' policy and upgrade our export structure. We feel the task lying ahead is challenging," he added.

As the initiator and key intellectual property rights holder of patents for the homegrown 3G telecommunications standard TD-SCDMA, Datang shoulders the responsibility to promote it worldwide. The company is also seeking to promote wider adoption of its 4G standard TD-LTE Advanced globally.

To better push forward the adoption of its 3G standard, in 2002, Datang managed to invite eight mobile carriers as well as equipment makers, notably China Mobile Ltd, Huawei Technologies Co and ZTE Corp, to form the TD Industry Alliance. Now the number of members in the club has grown to 90 and there are around 200 firms with businesses based on the standard.

In January 2010, Datang's TD-LTE Advanced was adopted by the International Telecommunication Union as one of the two 4G international mobile communication standards. The TD Industry Alliance could now serve as an important force to facilitate the commercialization of the Chinese-owned standard.

Yuan said in terms of its internationalization strategy, Datang has already deployed a relatively mature market layout in central and eastern Europe. Two pilot TD-LTE networks have been established in Europe so far.

Another pilot TD-LTE network was set up in Latin America, according to Yuan. In Africa, the company has acquired a commercial TD-SCDMA network in Malawi. Datang planned to use the network as leverage to tap the vast African market.

"We plan to use various means to exploit the international market. These means include collaboration with other major State-owned enterprises that have already set up mature marketing channels, mergers and acquisitions and building our own overseas offices and talent pool," said Yuan.