China Mobile and Taiwanese mobile operator Far EasTone have signed a memorandum of understanding (MOU) that will see them jointly build a test network based on TD-LTE technology in Taiwan. The Taipei Times notes that the agreement is the latest effort by the two operators to forge closer ties after the Taiwanese government last year blocked Far EasTone’s plan to sell a 12 percent stake to China Mobile. In a statement, the two firms said that the partnership will help local telecoms equipment suppliers, chipmakers and end product manufacturers test their products in the TD-LTE lab prior to commercialisation. “The lab will help local companies that are developing devices supporting TD-LTE technology to save costs and testing time,” the operators said.

China Mobile has long seen Taiwan as a test-bed for TD-LTE, the next-generation technology chosen to succeed its homegrown TD-SCDMA-based 3G network in China. TD-LTE is the unpaired ‘version’ of the more common FDD variant of LTE, but recent industry moves suggest it could become an important technology, largely due to China Mobile’s support. According to the Taipei Times, China Mobile teamed up with another local 3G mobile operator (Vibo Telecom) last year to operate a similar TD-LTE lab in Taipei. It was also reported last month that China Mobile has been given approval to open a subsidiary in Taiwan, a move that has raised hopes that the world’s largest operator will one day be given the go ahead to buy into Far EasTone. The move makes China Mobile the first mainland (Chinese) telecom firm to establish a foothold in Taiwan.