China-based Datang Telecom to re-enter handset market, say sources

China-based Datang Telecom Technology and Industry Group has decided to re-enter the China handset market with plans to launch 15 handsets before the end of 2008, according to market sources in China and Taiwan.

Datang will focus on TD-SCDMA/GSM and GSM/PHS dual-mode handsets as well as GSM handsets, the sources said.

Since the Datang Group is currently the largest vendor of solutions for TD-SCDMA handsets and the company also holds a number of patents for core TD-SCDMA technology, Datang's move will place itself in direct competition with its handset clients, the sources noted.

Datang has signed over 35 licensing contracts with 25 terminal-end makers for TD-SCDMA devices, according to company data.

source