IPMobile Makes 11th Hour Move

IPMobile announced last week that it has reached an agreement with Hong Kong based Distacom Group. The company is planning to lodge a request with Ministry, ahead of the required November 9 service launch date, to switch from it’s approved TD-CDMA format to the TD-SCDMA system citing improved procurement costs for the latter Chinese standard.

According to this article posted at Tech-on:

“We have asked Distacom for capital injection for some time and finally received its informal consent” said IPMobile. $1.5 million will be injected in October 2007 and $100 million by March 2008, but IPMobile said, “These are only the amounts at present. Distacom says it will prepare as much as needed if our business plan expands.”

“Considering more than 20 worldwide vendors have already developed more than 100 kinds of handsets, TD-SCDMA will drastically change procurement costs for equipment and our competitiveness in Japan,” said IPMobile.

As mentioned therein; “If the application is approved, the move is likely to be the company’s revival measure at the last moment.“