qcom--DJ Japan DDI To Use Qualcomm's Cdma2000 Technology - Nikkei
05/01/2000
Dow Jones News Services
(Copyright ¸ 2000 Dow Jones & Company, Inc.)
TOKYO (Nikkei)--DDI Corp. (J.DDD or 9433) has reversed its earlier plan and decided to employ cdma2000 technology from the U.S. firm Qualcomm Inc. (QCOM) in its 3G (third-generation) cellular phone service, which it aims to unveil in 2002, the Nihon Keizai Shimbun reported Tuesday morning.
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. (J.NTX or 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. (J.TYM or 7203), and KDD Corp. (J.KDD or 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. (J.JTC or 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. (LU) 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.
(END) DOW JONES NEWS 05-01-00 |
