Datang Telecom Technology and Industry Group (Datang Group) has unveiled its multi-billion-yuan plans to develop China's home-grown, third-generation (3G) mobile telecommunications standards for commercial use. The group yesterday announced that it would set up a subsidiary - Datang Mobile Communication Equipment, in which it will have a 90 per cent stake - to develop 3G products based on the TD-SCDMA (time division synchronous code-division multiple access) system. Zhou Huan, chairman and president of Datang Group and Datang Mobile, said the company had registered capital of 150 million yuan (about HK$140.5 million). However, the investment for developing the full range of TD-SCDMA products would be billions of yuan, Mr Zhou said. Datang Mobile was negotiating with telecoms equipment makers, investors and venture-capital funds to finance the project, he said. It is also considering raising funding through an initial public offering. However, Datang Mobile has not decided whether to raise the funding in the China market or in Hong Kong, nor has it set a timetable for listing. The firm plans to launch live trials of its technology in May and a commercial launch in the second half of next year. Working with Siemens, Datang Group had invested about 500 million yuan in development for the technology, Mr Zhou said. Development of the standard was initiated by the Ministry of Information Industry three years ago to compete with the WCDMA standard from the United States and the CDMA 2000 3G standard from Europe.