Everybody sure about W-CDMA!?
NTT DoCoMo Says Report of Hutchison Stake Speculation (Update2)
NTT DoCoMo Says Report of Hutchison Stake Speculation (Update2)
(Rewrites 1st paragraph. Updates share price in 13th
paragraph.)
Tokyo, Nov. 29 (Bloomberg) -- NTT Mobile Communications
Network Inc. described as ``speculation' a report it will buy a
stake in Hutchison Whampoa Ltd.'s mobile telecommunications
business, a move which would extend the reach of Japan's largest
cellular phone provider throughout Asia.
Hong Kong's Oriental Daily News, citing unnamed people, said
NTT DoCoMo, as the company is better known, will become the
second-largest shareholder in Hutchison Telecom and that the
companies will jointly develop W-CDMA, a new standard for
cellular telephone transmission. Hutchison Telecom is Hong Kong's
largest cellular operator in terms of the number of subscribers.
``We can't comment on speculation,' said Youichi Mizushima,
a manager for NTT DoCoMo public relations.
Analysts say such a move would have merit and that NTT
DoCoMo will probably use capital alliances with overseas carriers
to promote and develop the new standard.
``This deal makes sense,' said Ng Kong Yong, an analyst at
GK Goh Reseach in Hong Kong. ``From NTT (DoCoMo)'s point of view,
it will have a foothold in the Hong Kong market and for the
longer term in the China market. It has the same perspective as
Hutchison.'
New Standard
NTT DoCoMo is expected to become the world's first operator
to start cellular phone services based on Wideband-Code Division
Multiple Access, which in addition to voice traffic will be
capable of sending moving pictures and high-speed Internet
access.
Earlier, Hutchison Whampoa spokeswoman Laura Cheung refused
comment, adding the company isn't planning any news conferences
in the next two days.
The Hong Kong newspaper report said an announcement was
expected today.
A stake in Hutchison Telecom would give NTT DoCoMo an
opportunity to more readily promote the W-CDMA standard in other
parts of Asia. NTT DoCoMo is trying to position itself as the
leading provider of the new cellular phone standard, which it
says will be introduced in 2001. The new standard will allow
mobile users to access the Internet at two megabits per second
when standing still and 384 kilobits per second when moving.
NTT DoCoMo President Keiji Tachikawa said last week the
company is seeking opportunities to ally with other Asian
carriers and that his company is willing to ``contribute' to the
expansion of new generation phone technology in the region.
The report of a possible tie-up with Hutchison Telecom comes
after the company's parent, Nippon Telegraph & Telephone Corp.
confirmed last week it was looking at investing in Telekom
Malaysia. NTT said NTT Communications Corp., its international
arm, and NTT DoCoMo had reached agreement with Khazanah Nasional
Bhd., Telekom Malaysia Bhd.s largest shareholder, to consider a
``strategic investment' in that company.
Earlier this month, Hutchison and Global Crossing Ltd.,
which is building a global undersea network, said they will form
a $1.2 billion venture to offer Internet-related services in Hong
Kong and later in mainland China.
NTT DoCoMo shares rose 200,000 yen, or 5 percent, to 3.89
million yen. Hutchison Whampoa was unchanged at HK$95.50.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min. |
