Motorola pioneers concept
By Wen Dao (China Daily)
Updated: 2004-05-31 09:12

What connects luxury BMW and Buick cars, plasma TV sets and watching TV programmes on mobile phones?

Edward Zander is a man who knows the answer it's "seamless mobility," a term which has almost become the Motorola chairman and chief executive officer's catchphrase during his first visit to China, the company's second-largest market.

Motorola hopes to use this concept to enable people to communicate with others, use home or office appliances, or travel in a "seamless" way.

"We are in a better position than any other competitors in the market in this area," Zander said in Beijing.

While Motorola is best known in China as a mobile communications company, Zander said Motorola's history and leadership in automobile electronics, broadband and digital trunking systems give his company a better position than many other firms.

These businesses will also become new engines for Motorola's growth in China.

The Administration of Tianjin Economic Technological Development Area (TEDA), where Motorola's biggest Chinese manufacturing base is located, has decided to build a new plant for the US firm's automobile electronics facility, which Motorola will rent from it.

The first phase of the project is expected to finish this year, with the 18,000 square metre plant expected to be operational in 2005.

The factory will make engine control units, interior electronics, telematics and powertrain products.

The new facility will also have manufacturing lines for Motorola's embedded computing and energy systems businesses.

Although Motorola started its business 75 years ago with car radios, the Tianjin plant is its first automobile electronics production facility in China, as the company sees increasing demand in the nation.

More than 4 million vehicles were sold in China in 2003, compared with 3.46 million units in 2002, while this figure is forecast to grow by 25 per cent in 2006 and 2007.

It already received US$800 million worth of contracts for automobile electronics products from the China market in the first quarter of this year.

Zander also talked with Wang Qishan, the mayor of Beijing one of China's biggest automobile markets to discuss the use of automobile electronics in the city's development, such as curbing car exhaust emissions with electronic devices.

Motorola also aims to expand its broadband business, which is less well-known in China, along with the country's effort to digitize its TV network.

The world's biggest set-top-box and cable modem maker already brought its full array of solutions from set-top-boxes, cable modems and network devices and solutions to the China market in March.

Hong Kong-listed DVN Holdings Ltd also said earlier this month that Motorola will spend US$30 million in two years to acquire 30 per cent of its stakes to become the biggest shareholder in the Hong Kong-based set-top-box maker.

DVN signed agreements with more than a dozen of the 33 pilot cities taking part in the promotion of digital TV broadcasting on the Chinese mainland.

The acquisition of DVN stakes was believed to a major impetus to Motorola's development in the set-top-box market in China.

Zander also met Chinese and Beijing municipal officials to further extend Motorola's leading position in the digital trunking business in the world's most populous country.

With the development of Beijing and its hosting of the 2008 Olympics Games, there will be increasing demand for an electronic emergency response system and Zander's company, with its long-term commitment and leading position in the market, will have big opportunities.

However, in the concept of "seamless mobility," the mobile communications business will continue to play an essential role, especially in China.

Motorola's sales grew by 36 per cent and production also rose by 65 per cent in the first quarter over the same period last year, said Daniel Shih, the company's vice-president and president of its China operations.

Motorola held a three-day MotoInnovation conference in Beijing last week to discuss the development of mobile communications with telecom operators and distributors from the Asia-Pacific region.

Motorola will set up an application centre of excellence in Beijing to develop data applications based on third generation (3G) mobile communications with telecom operators and software developers. Motorola will help them with platforms, quality and engineering supports.

Adrian Nemcek, executive vice-president of Motorola and head of its global telecom service sector, said the centre will be open to all players in the 3G industrial chain.

He said he believed that the convergence of technologies will become a major trend in the industry.

Motorola demonstrated its high-speed downlink packet access (HSPDA) technology, which allows operators to provide wireless broadband connection similar to fixed line broadband, and CDMA 2000 1X EV DO, a 3G technology.

Although the industry is worried about a possible delay in the launch of 3G in China, Nemcek said this will not have much of an impact on his company.

Motorola, the biggest CDMA (code division multiple access) and second largest GSM (global system for mobile communications) equipment vendor in China, will focus on expansion contracts from operators and help them tap the potential of their current networks, which are already a huge market for Motorola.

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