News is in Japan...
Japan's DDI Reportedly Will Use Qualcomm's Cellular Phone Technology
(Dow Jones Online News, 05/2/2000 11:01)
TOKYO -(Dow Jones)- Japanese cellular and long-distance telephone operator DDI Corp. reportedly has chosen U.S.-based Qualcomm Inc. to provide the technology for its third-generation cellular phone services.
According to a report in the Tuesday morning edition of Japan's Nihon Keizai Shimbun, DDI has decided to employ the cdma2000 format championed by Qualcomm (QCOM) in order to reduce the investment needed to set up the infrastructure for third-generation, or 3G, cell phone services.
The wider bandwidth available with 3G technology can support video conferencing and high-speed Internet access through cell phone handsets.
DDI had been widely expected to use the cdma2000 format because the company already uses similar code division multiple access technology for its existing cell phone services. However, in March the company abruptly changed its position, indicating it was seriously considering adopting the W-CDMA, or wide-band code division multiple access, format to be employed by its two rivals -- NTT DoCoMo Inc. and Japan Telecom Co.'s J-Phone Group.
A DDI spokesman Tuesday said the company is "still considering both formats." He added that DDI will make an official announcement regarding the issue between May 8, when most Japanese companies restart regular operations after the Golden Week holiday break, and May 12, the deadline for applications for 3G cell phone operating licenses.
Japan's Ministry of Posts and Telecommunications is expected to issue just three operating licenses for 3G cell phone services, and DDI's indecision as to which technology to adopt had prompted Qualcomm to threaten to file a competing application for one of the licenses.
Ted Matsumoto, president of Qualcomm's operations in Japan, confirmed the company won't submit a license application if DDI adopts cdma2000. While Matsumoto didn't confirm the Nikkei report, he said he was "very encouraged" by the newspaper account, adding that Qualcomm will do all it can to help DDI maximize its market share for 3G services.
(Compiled from Dow Jones Newswires and other sources)
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Companies or Securities discussed in this article: Symbol Name
NASDAQ:QCOM QUALCOMM Incorporated
TOKYO:JP9437
TOKYO:JP9434
TOKYO:JP9433
NASDAQ:DDIC DDi Corp.
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