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Motorola to Provide i.250 GSM/GPRS Chip Solutions and Technology to China's Largest Mobile Communications Manufacturer and Supplier Eastcom
MOU signed between Eastcom and China Handset Manufacturers Alliance
Paves Way for i.250 platform to be adopted by China's Leading Phone Makers
Hangzhou, China - March 18, 2002 - As a move to further cooperation, today, Eastern Communications Co. Ltd. (Eastcom) - China's largest manufacturer and supplier of cellular mobile telephones and systems equipment - and Motorola's (NYSE: MOT) Semiconductor Products Sector (SPS), signed a Memorandum of Understanding (MOU) to develop the new-generation of mobile communications products in China.
This marked the second announcement of the two companies within two weeks, following their earlier agreement in which Eastcom has selected Motorola's i.250 Innovative Convergence GSM/GPRS platform to build state-of-the-art handsets. A comprehensive silicon-to-software solution, the i.250 platform which reduces normal part-counts by half will enable Eastcom to cut product development time up to a year's time, quickly capturing the exploding Chinese wireless market to top 320 million by 2004 [Source: China Center of Information Industry Development (CCID) Consulting Co. Ltd.].
Following the signing ceremony attended by Provincial Vice Governor Mr. Lu Zu Shan and Hangzhou Vice Mayor Mr. Jin Sheng Shan, Eastcom signed another memorandum of understanding with the China Handset Manufacturers Alliance adopting its handset modules based on Motorola's i.250 GSM/GPRS platform.
Established in 2001, the Alliance is aimed to promote the developments of local handset brands and China's mobile communications industry by joining forces of its 100-plus member companies amongst which belong to China's Top 100 Electronic Information Enterprises.
The collaboration is an expansion of a decade of successful cooperation between Eastcom and Motorola on mobile communication solutions. Eastcom has long been at the forefront of new research, development and technology innovation for cellular phones. Aiming to redefine value propositions across the wireless industry, since last year, Motorola for the first time has unleashed its embedded 2.5G and 3G semiconductor and software technology arsenal for leading manufacturers of mobile communications products. The MOU represents a milestone for two industry leaders to capture and develop the exploding handset market in China and worldwide.
China is the world's No. 1 cellular market as well as the world's manufacturing base for cellular phones. It is forecasted that the worldwide handset semiconductor market would reach US$26 billion in 2004 (Gartner, November 2001), and more than 480 million GSM/GPRS handsets would be manufactured by 2005. With the current penetration rate at a low 12% and China's growing dominance in both the original equipment manufacturers (OEMs) and original design manufacturers (ODMs) spaces, growth potential of China's handset manufacturing industry is tremendous. The i.250 platform which is the industry's most highly integrated 2.5G solution, would dramatically boost the ability of the local manufacturers to offer affordable, connected, up-to-date cellular capabilities and accelerate the developments of China's wireless communication industry.
"For more than a decade, we've collaborated with Motorola to advance a wide range of mobile communication solutions, including analog cellular, GSM cellular phones, base stations and more. We are pleased to extend such successful collaboration to the China Handset Manufacturers Alliance by providing member companies with our modules based on Motorola's solid i.250 platforms." said Shi Jixing, chairman of the board at Eastcom.
"With dynamic shifts and colossal economies of scale now occurring in the mobile communications market, handset manufacturers now compete on diversifying their product lines and getting to market quickly. We applaud Eastcom's and the Alliance's foresights to take advantage of our i.250 platforms that would vastly speed time to market," said Fred Shlapak, executive vice president and president of Motorola Semiconductor Products Sector. "This total system solution will allow them to concentrate on product differentiation, branding, upgrading and style for the new phones."
About Motorola i.250 GSM/GPRS platform
The i.250 platform supports a complete range of voice-centric, voice-data, and data-centric products but it also enables seamless migration to the i.300 platform, which provides next-generation 3G multimedia solutions. Scalable and highly integrated, the i.250 platform combines an advanced chipset with an industry-leading development environment, field-proven GPRS protocol software, type certification support, and best-in-class system cost.
Designed to meet a variety of customer needs, the i.250 platform provides a comprehensive roadmap with distinct industry advantages for smaller, lighter, cost-effective wireless products. These advantages include flexibility, offering low, mid and high-tier feature sets; scalability, offering migration paths from 2G and 2.5G to 3G protocols; and connectivity, with Personal Area Network (e.g., BluetoothTM wireless technology), and mobile commerce capabilities.
About Eastern Communications Co. Ltd. (Eastcom)
Headquartered in Hangzhou City, China, Eastcom is the country's leading provider of mobile communications products and equipment, including GSM handsets, and base stations. It has been selected by China Unicom as one of the suppliers for CDMA handsets and base station systems for the nation's upcoming CDMA service. Eastcom also provides professional mobile network maintenance and cellular phones repair services. . The company employs 3,000 employees and earned revenues of RMB 8.6 billion (USD1.03 billion ) in 2001.
About Motorola
As the world's #1 producer of embedded processors, Motorola's Semiconductor Products Sector creates DigitalDNA? system-on-chip solutions for a connected world. Our strong focus on wireless communications and networking enables customers to develop smarter, simpler, faster and synchronized products for the person, work team, home and automobile. Motorola's worldwide semiconductor sales were $4.9 billion (USD) in 2001. http://www.motorola.com/semiconductors
Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications and embedded electronic solutions. Sales in 2001 were $30 billion. http://www.motorola.com
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