An alliance was established on Friday in Beijing to boost the development of SCDMA (Synchronous Code Division Multiple Access), a homegrown wireless access system.

It enrolled 11 domestic telecom equipment providers and IT-related suppliers including Lenovo, TCL, Amoi, Konka, Hisense, Skyworth, Xinwei Technology and Datang Telecom.

"With establishment of the alliance, we are aiming to synergize our efforts to boost the system as well as tapping market potential," said Zhou Huan, president of Datang Telecom Technology, yesterday in Beijing.

SCDMA, also call "Big Smart" wireless phone service, has mainly been developed by Beijing Xinwei Telecom Technology Co Ltd, a joint venture between Datang Telecom Technology and Industry Group Cwill Telecommunications Inc and Bonanza Investment Co Ltd.

"With the unique technology and huge market potential, I believe SCDMA is very promising in the Chinese market," he said.

SCDMA is distinguished from other systems by its unique technologies such as smart antennae, software radio and synchronous wireless access protocol.

For example, a fully adaptive smart antenna system is the integration of antenna array hardware and intelligent signal processing software.

Unlike traditional single, sectorized, or switching beam systems, the adaptive smart antenna system can fully exploit the spatial diversity of multiple subscriber units and achieve significantly larger channel capacity.

"With the birth of the alliance, the SCDMA system is getting a strong shot in the arm," said Vice-Minister of Information Industry Lou Qinjian.

He believed enhanced co-operation between domestic enterprises will help forge an effective industrial chain for the system ranging from networks to terminal handsets.

In fact, to support the SCDMA system, the Ministry of Information Industry (MII) has so far designated the 23 megahertz frequency specially for the system.

Currently, the technology is deployed in 106 cities of 16 provinces across China.

MII's latest figures indicate that the system has attracted more than 400,000 subscribers nationwide.

Analysts say they believe the "Cuntong Project," a programme launched by the MII to offer telecom access to rural areas, is providing great opportunities for the system.

SCDMA is one of the most preferred technologies in the programme, Lou said.

According to Chen Wei, general manager of Beijing Xinwei Technology Co Ltd, SCDMA system's advantages mainly lie in the highest spectrum efficiency; simple structure, flexible network interface; excellence in monitoring malfunction, measuring performance, and management system.

Chen said all the country's major telecom operators are working on pilot connecting based on the SCDMA system in five western provinces and autonomous regions: Sichuan, Shaanxi, Guangxi, Henan and Inner Mongolia.

In another development, the MII is speeding up its effort to promote universal telecom service in rural areas so as to balance the development of the telecom industry.

The MII is teaming up with the Ministry of Finance and the State Development Reform Commission to raise a universal service fund to boost the universal service in rural areas.

After the fund is ready, the work will be mainly led by the MII.

In the first five months of this year, national telecom recruitment was 27.65 million new fixed line subscribers. However, only 24 per cent of the subscribers were from rural areas.

Currently, the teledensity in the rural areas is only 13 per cent, a great gap compared to 23.7 per cent overall.