Another firm eyes handset market Huawei

Technologies, a leading Chinese manufacturer of telecoms switching equipment, plans to move into production of thirdgeneration handsets, South China Morning Post said. The manufacture of handsets would complement its 3G equipment switching business but the start of production would depend on it receiving a government licence for 3G services.

Beijing has granted licences to 36 handset makers and said it would not issue any more. Domestic mainland computer manufacturer Legend Group, which also did not have a licence, moved into the mobile phone market by acquiring an 80 per cent stake in a small domestic manufacturer, Xiamen Overseas Chinese Electronics.