According to reports in Taiwanese local media, Liu Liqing, director for the China Association of Communications Enterprises, has revealed that the Chinese mainland will sign a cooperative memorandum with Taiwan to build a TD-SCDMA trial network in Taiwan.

The reports state that the mainland and Taiwan will also jointly set up a submarine cable. The negotiations are reportedly smooth and the mainland has made full preparations, only waiting for the approval of Taiwan's relevant agencies. Liu said the submarine cable is not long and the investment is not large, which is estimated at CNY20 million. The project is expected to be completed in the second half of 2009.

The news has also been confirmed by Shyue-Ching Lu, chairman of Taiwan's Chunghwa Telecom. He said the company has already applying for a construction license from Taiwan's Ministry of Transportation and Communications. If everything goes well, the submarine cable will be put into use in 2010.

Liu added that with the setting up of the cross-strait submarine cable, the call fees between the two sides will be reduced while the call efficiency will be improved.