Commit, one of the five mainland-based TD-SCDMA chipset developers, is facing deepening financial trouble after venture capitalists baulked at its cash call, market sources said. Sources said Commit, part-owned by Nokia and LG, had held talks with several venture capitalists for fresh funds but was unable to secure a deal. Its earlier attempt with existing shareholders also failed because of disagreements on the way to increase their stakes, sources said. Still, global mobile-phone vendor Nokia may eventually bail out Commit because of its interest in exploring the TD-SCDMA handset market on the mainland, market watchers said. 'We believe Nokia may be interested in expanding its TD-SCDMA offering once mainland 3G picks up,' said Flora Wu, a senior analyst at BDA, a telecommunications research firm. 'Nokia may pump [money into Commit] for the new development.' Commit chief executive Evan Yu told mainland media yesterday that the company would fold at the end of this month because it lacked cash to pay its staff over the past three months. 'Commit's management and shareholders are still trying their best to secure new financing to continue our operations,' said Mr Yu. Started in 2002, Commit is one of the earliest chipset developers of the homegrown 3G technology. The company was founded by 17 major names in the global telecommunications sector such as Texas Instrument, Nokia, LG and mainland-based vendor China Putian. Foreign shareholders hold 68.76 per cent of the company. With such strong shareholders behind it, the firm was once regarded as the leading developer of TD-SCDMA chipsets. However, several technical setbacks during its initial product development allowed rivals such as Nasdaq-listed Spreadtrum Communications and T3G to surpass the company. Sources said the majority of TD-SCDMA handset makers are using chipsets developed by Spreadtrum. 'The failure of Commit is a result of insufficient cash inflow to support research and development before 3G's commercial launch,' said BNP Paribas analyst Frederick Wong. He said Spreadtrum had been selling existing 2.5G mobile chipsets to support spending on developing TD-SCDMA products. China Mobile Communications Corp, which handles the 3G commercial trials on the mainland, plans to sell 60,000 terminals during the first round of trials. Critics said the volume was not large enough and would put TD-SCDMA equipment vendors into trouble.