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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

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To: Ramsey Su who started this subject	11/2/2000 1:29:39 PM
From: mightylakers	Read Replies (3) of 197300

Toshiba, Siemens join for 3G handsets nni.nikkei.co.jp Friday, November 3, 2000 Toshiba, Siemens Finalizing Alliance In 3G Cell Phone Handsets TOKYO (Nikkei)--Toshiba Corp. (6502) and Siemens AG are putting the finishing touches on a far-reaching business alliance in next-generation, or 3G, cellular phone handsets, The Nihon Keizai Shimbun learned Thursday. A formal agreement is expected to be reached by the end of this year. The deal will cover joint R&D in 3G handsets, which will be capable of high-speed transmissions, as well as cooperation in production and marketing. Most of Japan, other parts of Asia and Europe are poised to employ the same WCDMA (wide-band code division multiple access) technical standard for 3G services, but the Toshiba-Siemens tie-up will be the first joint R&D effort by Japanese and European handset manufacturers. The handsets will be designed to function with both WCDMA and the GSM (global system for mobile communications) format now used in Europe for digital cellular phones. Toshiba will be responsible for elements such as system chip technology capable of sending and receiving compressed video, while Siemens will contribute its knowledge of GSM. In addition to the benefits of sharing the roughly 40 billion yen in estimated R&D costs for 3G handsets, the partners also see the partnership as boosting the speed of development. Toshiba and Siemens as early as the second half of 2001 will start marketing the handsets under their own brand names. The German firm will assist Toshiba in its European marketing efforts because the Japanese firm has made little progress there. They are also looking into ways of making effective use of their production facilities and joint supply of products. The 3G services are slated to make their global debut in Japan in May 2001. By 2005, the size of the global market for the handsets is expected to hit around 1 trillion yen. Toshiba and Siemens together had about 7% of the global market for cellular phone handsets in fiscal 1999, but they aim to increase that figure to over 10% through their agreement. (The Nihon Keizai Shimbun Friday edition)

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