By a cruel twist of fate this agreement had been due to be signed in front of the UK's PM, Tony Blair and the Chinese Premier, Wen Jiabao. As luck would have it neither could attend. Gordon Brown didn't deputise, either.
Anyway, Dominic Strowbridge, marketing director for BT Movio - which created DAB-IP - revealed that the true motivation behind working with ZTE is that the deal should help promote this TV technology in the world's largest mobile phone market - China.
Sadly Frank Bai, general manager for ZTE in the UK, wouldn't reveal just whose chips are going to be inside the 3G TV phone. He wouldn't say if Qualcomm is heavily involved, for example.
ZTE's announcement comes just weeks before Movio makes it global debut when Virgin Mobile offers it to the public using a 2.5G (GPRS) handset called the Lobster and reputedly made by Taiwanese manufacturer, HTC.
Virgin will start offering the service from October 1st. The key benefit to Movio is that it provides access to the UK's premium TV channels including BBC1.
Another advantage that Movio enjoys is that it can be broadcast over standard DAB channels - such as Band 3 and the L band. So broadcasters can use their existing licenses and spectrum - whereas arch rival DVB-H requires starting from scratch.
DAB-IP has other strengths - such as the fact that its signal is encrypted which enables mobile operators to charge for the service. Except, of course, BBC1 which will always be free.
The pair also claimed that continuously watching TV on your mobile phone will only reduce the handset's battery life to between 3.5 and 4 hours. Maintaining a constant 3G connexion would drain the battery faster than that.
Another selling point for Movio is that ZTE handset owners will be able to 'roam' via 3G and still watching the British TV programme they want to see. How expensive an exercise that will prove wasn't revealed. ยต
L'INQ
ZTE