DATANG Telecom Technology & Industry Group (Datang Group)(stock code: 600198) has received a 30-billion-yuan (US$3.93-billion) long-term bank loan from China Development Bank to support the company's home-grown 3G technology development and network construction.

The companies made the announcement at a joint press conference in Beijing yesterday.

Datang Telecom Technology Co, the group's Shanghai-listed firm, jumped 4.12 percent to close yesterday at 26.76 yuan after surging by the five-percent daily cap in the previous three sessions.

The funds will be used to boost the development of TD-SCDMA (time division-synchronous code division multiple access) and large-scale network construction for the 2998 Beijing Olympic Games, according to a statement posted on sina.com.

Datang Mobile, the group's unlisted firm, is the major developer of TD-SCDMA, which covers chip blueprint, handset design and network construction.

"It solved the capital bottleneck of the TD-SCDMA industry and it will obviously fasten the space of network construction," said Li Yanfeng, an analyst at Beijing-based CCID Consulting, a research firm under the Ministry of Information Industry.

China will probably issue a TD-SCDMA license first to support the home-grown technology and then give out licenses later based on the two other more widely used global standards - CDMA 2000 and WCDMA (wideband-CDMA).

China Mobile has invested about six billion to seven billion yuan to establish TD-SCDMA networks in 10 cities.