NEC, Matsushita to link up on 3G mobile technology
By Daisuke Wakabayashi
TOKYO, Aug 20 (Reuters) - Matsushita Communications Industrial Co Ltd <6781.T> and NEC Corp <6701.T>, Japan's two largest mobile phone makers, will cooperate on video software for fast mobile Internet-enabled phones and handheld computers.
The companies said they will make an announcement on the tie-up on Tuesday, but declined to give further details.
Aimed at strengthening their leading positions in the world's second-largest telecommunications market, the deal marks the first major third-generation (3G) tie-up between two Japanese mobile phone makers, although many of the manufacturers have links with overseas companies.
The Nihon Keizai Shimbun newspaper reported that Matsushita Communication, which had a 26 percent share of Japan's handset market last year, and NEC, which has 23 percent, would also supply each other with mobile phones for sale under their own brands on an original equipment manufacturing basis.
Matsushita Communications, 56.3 percent owned by consumer electronics giant Matsushita Electric Industrial Co Ltd <6752.T>, and NEC are the only companies with working 3G cell phones in Japan, as part of dominant mobile operator NTT DoCoMo Inc <9437.T> introductory 3G service launched in late May.
Hyper-fast 3G services offer fast data transmission speeds, allowing users to receive Internet, video and music on handsets.
Matsushita Communications was trading 6.5 percent higher at 4,260 yen ($34.12), bucking a decline in the broader market and NEC, which was trading at 1,621 at 10:20 a.m. (0120 GMT), down 1.16 percent.
The key Nikkei 225 average was down 1.14 percent.
The firms will join hands in developing video transmission software for third-generation (3G) cell phones, while jointly planning new personal digital assistants (PDA).
Matsushita Communication has been using its video transmission phone as part of NTT DoCoMo's trial service for third-generation phones, with an expected full commercial launch on October 1.
Shares in all three companies have fallen since the start of the year in line with a sell-off in info-tech shares worldwide, with NEC down more than 20 percent, Matsushita Electric falling nearly 40 percent, while Matsushita Communication is down 70 percent in the year to date.
The key Nikkei 225 average was down 17 percent during the same period.
21:26 08-19-01 |
