CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China's TD terminals, and their sprint towards commercialized use.

In the TD-SCDMA industry, TD terminals are now directly facing consumers, as well as directly effecting consumers' feelings towards 3G. As one of the most important factors in the industry, TD terminals have dual characters: first, they provide elementary communications functions; and second, they become a kind of consumer electronics product that integrates digital cameras, audio players, video players, network browsers and PDAs. It presents 3G business.

CCID Consulting has therefore paid close attention to the development of TD terminals and herein reviews China's TD terminal in 2007Q3.

The Number of Potential Users is Great

By the end of Sep. 2007, the number of China's mobile phone users reached over 526 million. Currently, the number of China's high-end mobile phone users has reached 50 million.

MediaTec Inc. Sets Foot in the TD Terminal Industry chain

MediaTec Inc. was actively seeking an opportunity to enter the TD-SCDMA chip industry, and on Sep. 10, 2007 MediaTec Inc. formally entered the TD- SCDMA chip market through the acquisition of ADI's mobile phone chip department.

MediaTec Inc. has a large market share in China's 2G mobile phone market and it accounts for over 40% of the total market share in China's baseband chip market. Besides Bird, TCL, Lenovo, KONKA, Longcheer, SIM and K-Touch, abundant no-brand enterprises enter the mobile phone industry through adopting MediaTec Inc.'s products. MediaTec Inc. is not only the biggest mobile phone chip provider in China, not also the third largest provider in the world. However, most of its shipments come from China's domestic mobile phone brands. The international brands such as Nokia, MOTO, Samsung and Sony Ericsson have not become MediaTec Inc.'s clients. Wireless chips have a bright future. If MediaTec Inc. wants to steady its position; it needs to have international clients. Although ADI's mobile phone chip business is as good as before, it has international partners such as LG and SHARP. MediaTec Inc.'s acquisition will help itself to develop international clients.

Although the cooperation between ADI and Datang Telecom on TD-SCDMA business is not the most important part of the acquisition, it is...

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