Datang Telecommunication Technology Group has secured a 30 billion yuan loan from policy lender China Development Bank to fund its research on the mainland's homegrown third-generation mobile technology, sources said.
They said China Development Bank and Datang Telecom yesterday signed the loan agreement in Beijing. A Datang spokesperson said the company would issue an announcement regarding the deal.
Datang Telecom's parent, China Academy Telecommunication Technology, holds the patents to the homegrown 3G standard, TD-SCDMA.
Datang Mobile, a unit of Datang Telecom, is a major contractor for China Mobile Communications Corp in its commercial trials of the new standard in eight cities.
With its patent, the group is expected to benefit from the proposed commercial launch of TD-SCDMA service later this year by charging royalty fees.
'The new loan shows the determination of the mainland government to grow the TD-SCDMA standard,' an industry source said.