DDI decides to use CDMA 2000.
Tuesday, May 2, 2000
DDI To Use Qualcomm's Cdma2000 Technology For 3G Cell Phones
TOKYO (Nikkei)--DDI Corp. (9433) has reversed its earlier plan and decided to employ cdma2000
technology from the U.S. firm Qualcomm Inc. in its 3G (third-generation) cellular phone service,
which it aims to unveil in 2002, The Nihon Keizai Shimbun learned Monday.
DDI's latest decision represents a reversal of its earlier choice made in March to adopt the
W-CDMA (wide-band code division multiple access) 3G technical standard, developed by NTT
DoCoMo Inc. (9437) and others, which will be used in both Japan and Europe.
DDI has decided to use the North American system in order to curb the investments needed to set up
the infrastructure for the 3G service, and to go up against rival NTT DoCoMo, sources say. DDI
already uses Qualcomm's cdmaOne technology in its cellular phone business.
DDI at the end of April reached a basic agreement with October merger partners IDO Corp., which
is affiliated with Toyota Motor Corp. (7203), and KDD Corp. (9431) to use cdma2000. They will
formally make the decision in the middle of next week, the sources said.
Third-generation cellular phone service will enable the transmission of video images and other data
at speeds about 200 times faster than currently possible. The two technological standards that make
such service possible are Qualcomm's cdma2000 and W-CDMA.
NTT DoCoMo and the nine J-Phone companies operating under Japan Telecom Corp. (9434) have
decided to employ W-CDMA technology when 3G cellular phone service starts in Japan in 2001,
and the same standard will be used in Europe when the service is launched there in 2002. With the
U.S. not expected to begin 3G service until around 2005, DDI had earlier decided to hold off on
cdma2000 in favor of W-CDMA.
In an effort to enlist DDI in its camp, Qualcomm proposed the use of its HDR, or High Data Rate,
wireless Internet access technology. Qualcomm stressed that the adoption of the HDR format along
with cdma2000 technology will boost the efficiency of capital investment for the 3G service. As
U.S.-based Lucent Technologies Inc. is said to be planning to supply equipment that meets the
cdma2000 standard, DDI concluded that cdma2000 technology will become a global standard along
with W-CDMA.
(The Nihon Keizai Shimbun Tuesday morning edition)
JohnG |
