China's television and cell phone maker TCL and French telecom supplier Alcatel are set to launch a joint venture in Hong Kong in the third quarter of this year.

TCL will invest US$65 million for a 55% equity stake in the joint venture, with Alcatel contributing cash and a mobile handset business worth 53 million for the remaining stake. The joint venture is expected to have an extensive sales network offering coverage in China, Latin America, Europe and the rest of the world addressing major operators and distributors.

In addition, Alcatel intends to grant to the joint venture company a license to use the Alcatel brand name for handsets sales and distribution, building on the brand's strength in the global telecommunication industry.