China's No 2 telecom-equipment maker ZTE Corp last Friday began building an R&D base to focus mainly on 3G technologies, the latest in a growing list.

The first phase of the R&D center, involving an investment of about 2 million yuan (US$246,000), will be ready for operation next year.

ZTE already has an R&D facility in Chengdu employing about 290 engineers; and the facility will be integrated into the R&D base.

The move comes hot on the heels of telecom-equipment makers Nokia and Alcatel Shanghai Bell (ASB) setting up similar ventures.

Nokia launched a 3G R&D center in Chengdu late last month.

The Nokia Chengdu R&D Center is the company's sixth R&D unit and second 3G R&D center in China, which will develop new mobile applications based on 3G and IP Multimedia Subsystem (IMS) for Chinese and global markets.

The country's leading telecom-equipment maker Huawei Technologies also has a 3G R&D center in Chengdu.

The rush to build R&D facilities in Chengdu underlines the increasing importance of the most affluent city in southwest China for major communications firms.

For example, Nokia's West China Region's headquarters is in Sichuan as the province plays a key role in the company's national strategy.

"Creating new services with IMS has great potential. It means more appealing and richer services for both mobile subscribers and enterprises," said Jouni Pirhonen, director of Nokia Chengdu R&D Center.

"As a global leader in mobile communications, Nokia will leverage its Chengdu R&D Center to build a partner network and help operators to rapidly and efficiently expand their application service portfolio."

Nokia has also signed a deal with local fixed-line operator Sichuan Telecom to establish a value-added service application center.

In addition, the Finnish firm has agreed to jointly develop mobile applications and wireless value-added services under a deal with Chengdu Digital Entertainment Software Park.

(China Daily September 6, 2005)