Here's the sunset!
(REUTERS) NEC, Fujitsu, M'shita eye Y5 trln base-station mkt
By Kunihiko Kichise
TOKYO, Aug 8 (Reuters) - As mobile operators worldwide
prepare for vamped-up third-generation (3G) services, Japanese telecoms equipment makers are scrambling for a foothold in the potentially lucrative market for radio base stations.
Base stations are the terminals connecting handsets and
telephone networks. As Japanese and European operators roll out 3G services, they will allow the fast transmission of Internet data, video and music to cell phones. Japanese telecoms equipment makers NEC Corp , Matsushita Communications Industrial Co Ltd and Fujitsu Ltd are all boosting output of 3G base stations, company sources said on Wednesday.
Plenty is at stake.
"It will be a five trillion yen ($40 billion) market in
2005," an official in Fujitsu's mobile and wireless systems
department said. Top Japanese wireless operator NTT DoCoMo Inc began a trial 3G service in May. It is set to launch a commercial service on October 1, making it the world's first 3G carrier.
Japan's wireless equipment makers are counting on this head
start to put them in pole position overseas. Matsushita Communications, the country's number one handset
maker, said it had recently doubled monthly production to 120 units.
"We plant to ship 800 to 1,000 3G base stations in the 2001
business year and expect 40 billion yen in sales," a Matsushita Communications official said. The company's current business year ends next March.
Electronics titan NEC is already making 100 to 200 3G base
stations per month. It has received orders from DoCoMo as well as carriers in Britain and Italy.
"We are aiming for a 20 percent share of the market," an
official in NEC's wireless networks division said.
Electronics conglomerate Fujitsu, Japan's top computer maker, said it would ramp up monthly production capacity of 3G base stations to 1,150 units from 650 units in September.
Fujitsu plans to ship 1,000 base stations to France's Alcatel , its overseas joint-venture partner, the official said. It will aim for a 15 percent market share in the 2003 business year.
CAUTIOUS OPTIMISM
Third-generation services are set to take off worldwide under two competing standards. They are the W-CDMA (wideband code division multiple access) format favoured by DoCoMo and cdma2000, developed by U.S. wireless technology firm Qualcomm Inc . With W-CDMA, Japan's wireless equipment makers will finally get a chance to sell their base stations overseas with technology compatible in Japan.
Until now, Japan had its own proprietary second-generation
digital wireless system that made it difficult to transfer
know-how overseas. "Since we can sell overseas, this is a chance to expand our business opportunity," the Fujitsu official said. Others were not so optimistic, citing the huge cost of government licences for 3G. A warning by top global mobile operator Vodafone Group of a delay to 3G services has also clouded the outlook.
"In addition to the strain from 3G licences, 2.5 generation
services are not selling so well, so European carriers are not investing aggressively," the NEC official said, referring to interim medium-speed services.
Finland's Nokia , the world's largest handset maker, favours the W-CDMA standard and recently signed a deal to
supply its base stations in Japan to third-ranked wireless
carrier J-Phone Communications Co Ltd.
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($1=123.53 Yen)
REUTERS |
