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Wednesday June 9, 9:44 am Eastern Time
Motorola, Sun in 10-year wireless hardware pact
SCHAUMBURG, Ill., June 9 (Reuters) - Telecommunications company Motorola Inc. (NYSE:MOT - news) and Sun Microsystems Inc. (Nasdaq:SUNW - news), a provider of computer network services, said Wednesday they formed a 10-year pact to develop equipment that will allow network operators to deliver a high level of wireless telephone service to businesses and consumers.
In a joint statement, the companies said the new network equipment is expected to provide an unprecedented level of wireless availability, one that will match the level of quality in telephone service over traditional wire lines.
The quality will be ''the equivalent in a wireline world of near-infinite dial tone....a claim that only the wireline industry can make today,'' they said.
The agreement joins the wireless communications operations of Motorola's Network Solutions Sector (NSS) with hardware equipment from Motorola's Computer Group (MCG) and software from Sun. Motorola plans to purchase up to $1 billion in board- and system-level hardware from MCG, software and hardware from Sun, and custom hardware from Motorola NSS.
The companies said the new networks will allow wireless service providers and commercial developers to quickly respond to demands for Internet-based voice, data and video services.
''Motorola is moving the wireless telecommunications industry from its proprietary past to a future based on open IP (Internet Protocol) standards which can provide reduced costs, increased reliability and new value-added services for our customers,'' said Chris Galvin, Motorola chairman and chief executive officer.
''In short, Sun and Motorola are laying the foundation for the digital wireless network of the 21st century.'' said Sun chairman and chief executive officer Scott McNealy.
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